Investigating the relationship between director’s profile, board interlocks and corporate social responsibility
Résumé
Purpose:
The purpose of this paper is to discuss a research model that presents three metrics of Corporate Social Performance (CSP): board interlocks, director’s profile and Corporate Social Responsibility (CSR).
Design/methodology/approach:
Based on social network theories, the authors argue the possible relationships between the three variables. They conduct their study on 255 directorships in the boards of 20 listed companies in France, which participate in Carbon Disclosure Project (CDP) for 2010.
Findings:
The results show that director's background and nationality diversity in the board are the most relevant attributes to discerning firms with high CSR scores. However, the relationship between board interlocks and CSR is not consistent. Some explanations are reported and discussed.
Research limitations/implications
The research contributes to recognize the most influential variables in board composition for firms with high CSR scores, although it is based on a conceptual development and an explorative analysis. It could constitute the basis for future research which integrates modeling and multivariate analysis.
Practical implications:
Diversity in the board could be an effective tool to guide management for more CSR decisions.
Originality/value:
The paper contributes to board literature by highlighting the importance of combining individual attributes (director) with corporate ones (board of directors) to better assess the role of board of directors in the adoption of CSR’ practices.