The Influence of Diverse Boards on the Corporate Social Responsibility of Indian Companies
DOI:
https://doi.org/10.55578/isgm.2603.005Keywords:
Corporate Social Responsibility, Board gender diversity, Independent director, Board size, CEO dualityAbstract
Diversity on board is essential to the successful application of CSR initiatives. Businesses can enhance their decision-making procedures and better serve stakeholder demands by cultivating diverse leadership. The study analyses the impact of diversity of boards of directors on Indian companies' corporate social responsibility performance of 540 companies listed on the National Stock Exchange of India from April 2012 to March 2021. The data relating to CSR has been extracted from the Bloomberg database and other variables have been taken from the CMIE Prowess database. Built on a fixed effect panel regression analysis, this study discovers that the board diversity of Indian enterprises has a mixed impact on their CSR performance. The study also analyses the effect of board diversity on the environment, social and governance scores separately and presents the findings of the study. The paper explains how a diverse board affect corporate social responsibility in the Indian setting, where CSR spending and the elements of board diversity like the presence of women directors and independent directors is mandated by the law. The paper also makes suggestions and recommendations based on the findings.
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Data Availability Statement
The data used in this study are not publicly available due to licensing agreements with Bloomberg and CMIE Prowess. Access may be granted upon reasonable request, subject to approval from the data providers.
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