How and When Does Female Board Representation Influence Corporate Social Responsibility Performance?

Abstract

Many previous studies found an inconsistent relationship between female board representation and corporate social responsibility performance. However, the underlying processes that produce the mixed relationship are still unclear. Building on stakeholder theories and social exchange theories, the author proposes that the moderating influence from the institutional environment can explain this mixed relationship. Specifically, the author suggests that organizations in countries with high democratic voice and accountability (i.e., more diverse regulatory regimes in such countries, which include more open and transparent voices from citizens) will strengthen the positive effect of female board representation on corporate social responsibility performance toward stakeholders who have less institutional power. The main contribution is to explicate the moderating effect of democratic voice and accountability that potentially produces the mixed relationship between female board representation and corporate social responsibility performance and reconcile inconclusive findings in the literature.