The Influence of Culture on the Relationship between Women Directors and Corporate Social Performance

Abstract

We examine the relationship between women directors and corporate social performance (CSP) by considering the contingency effects of home country culture. Drawing on upper echelons and social role theories, we hypothesize that greater women representation on boards positively affects CSP due to their distinctive expertise, perspectives, and knowledge in this area, which strengthen their firms’ attention and resources devoted to it. We then draw on the cultural perspective to explain how national culture moderates this relationship by shaping the salience of women directors’ views and boards’ openness to them. Based on data for 3,175 firms across 38 countries between 2008-2015, our multilevel analysis provides support for most of our hypotheses.

Keywords: Board of Directors, Women Directors, Corporate Social Responsibility, National Culture, Upper Echelons Theory, Social Role Theory, Multilevel Analysis

JEL Classification: M16