MANAGEMENT DIVERSITY AND CORPORATE SOCIAL RESPONSIBILITY OF QUOTED FIRMS IN NIGERIA
Keywords:
Corporate Social Responsibility, Management Diversity, Gender Diversity, Economics Activities
Abstract
In recent years corporate social responsibility has become a major focus of interest for policymakers, regulators, and academics. Corporate social responsibility (CSR) is basically a concept of voluntary business activities whereby corporations integrate social concerns and other environmental concerns into their economic activities. The study hinged on stakeholder theory to serve as the main theoretical framework. Pool OLS with tests for fixed and random effects was employed to estimate the impact of board diversity, and CSR. The study employs the Generalized Least Square (random effects) regression to examine how board diversity components, including nationality, educational qualifications and gender, affect CSR of 20 listed industrial and commercial goods on the Nigerian Exchange Group, during 2015-2019. The result shows that it is only gender diversity that has a significant positive relationship with corporate social responsibility expenditure while foreign nationality and educational diversity have revealed no significant effect on corporate social responsibility expenditures. This result is revealing that an increase in female representation in the boardroom will result in a corresponding increase in CSR expenditures of companies. This result confirms that women directors might take CSR issues more seriously than their male counterparts not only because of their stronger moral orientations.
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References
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Ben-Amar, W., Chang, M., & McIlkenny, P. (2015). Board Gender Diversity and Corporate Response to Sustainability Initiatives: Evidence from the Carbon Disclosure Project. Journal Of Business Ethics, 142(2), 369-383. doi: 10.1007/s10551-015-2759-1
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Campbell, K., & Mínguez-Vera, A. (2007). Gender Diversity in the Boardroom and Firm Financial Performance. Journal of Business Ethics, 83(3), 435-451. doi: 10.1007/s10551-007-9630y
Carter, D., Simkins, B. and Simpson, W. (2003). Corporate Governance, Board Diversity, and Firm Value. The Financial Review, 38(1), pp.33-53.
Conyon, M., & He, L. (2017). Firm performance and boardroom gender diversity: A quantile regression approach. Journal of Business Research, 79, 198-211. doi: 10.1016/j.jbusres.2017.02.006
Conyon, M., & He, L. (2017). Firm performance and boardroom gender diversity: A quantile regression approach. Journal Of Business Research, 79, 198-211. doi: 10.1016/j.jbusres.2017.02.006
Cook, A., & Glass, C. (2015). Diversity begets diversity? The effects of board composition on the appointment and success of women CEOs. Social Science Research, 53, 137-147. doi: 10.1016/j.ssresearch.2015.05.009
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Erhardt, N., Werbel, J. and Shrader, C. (2003). Board of Director Diversity and Firm Financial Performance. Corporate Governance, 11(2), pp.102-111.
García-Sánchez, I., Suárez-Fernández, O., & Martínez-Ferrero, J. (2019). Female directors and impression management in sustainability reporting. International Business Review, 28(2), 359-374. doi: 10.1016/j.ibusrev.2018.10.007
García-Sánchez, I., Suárez-Fernández, O., & Martínez-Ferrero, J. (2019). Female directors and impression management in sustainability reporting. International Business Review, 28(2), 359-374. doi: 10.1016/j.ibusrev.2018.10.007
Harjoto, M., Laksmana, I., & Lee, R. (2014). Board Diversity and Corporate Social Responsibility. Journal Of Business Ethics, 132(4), 641-660. doi: 10.1007/s10551-014-2343-0
Harjoto, M., Laksmana, I., & Yang, Y. (2019). Board nationality and educational background diversity and corporate social performance. Corporate Governance: The International Journal of Business in Society, 19(2), 217-239. doi: 10.1108/cg-04-2018-0138
Ibrahim, A., & Hanefah, M. (2016). Board diversity and corporate social responsibility in Jordan. Journal of Financial Reporting and Accounting, 14(2), 279-298. doi: 10.1108/jfra-06-2015-0065
Issa, A., & Fang, H. (2019). The impact of board gender diversity on corporate social responsibility in the Arab Gulf states. Gender In Management: An International Journal, 34(7), 577-605. doi: 10.1108/gm-07-2018-0087
Kang, H., Cheng, M. and Gray, S. (2007). Corporate Governance and Board Composition: diversity and independence of Australian boards. Corporate Governance: An International Review, 15(2), pp.194-207.
Kang, Y., Huh, E., & Lim, M. (2019). Effects of Foreign Directors’ Nationalities and Director Types on Corporate Philanthropic Behavior: Evidence from Korean Firms. Sustainability, 11(11), 3132. doi: 10.3390/su11113132
Khan, I., Khan, I., & Saeed, B. (2019). Does board diversity affect quality of corporate social responsibility disclosure? Evidence from Pakistan. Corporate Social Responsibility and Environmental Management. doi: 10.1002/csr.1753
Leung, N., & Cheng, M. (2013). Corporate governance and firm value: Evidence from Chinese state-controlled listed firms. China Journal of Accounting Research, 6(2), 89-112. doi: 10.1016/j.cjar.2013.03.002
Liu, Y., Wei, Z., & Xie, F. (2014). Do women directors improve firm performance in China? Journal Of Corporate Finance, 28, 169-184. doi: 10.1016/j.jcorpfin.2013.11.016
Masulis, R., Wang, C., & Xie, F. (2012). Globalizing the boardroom - The effects of foreign directors on corporate governance and firm performance. Journal Of Accounting and Economics, 53(3), 527-554. doi: 10.1016/j.jacceco.2011.12.003
Miller, T. & del Carmen Triana, M. (2009). Demographic Diversity in the Boardroom: Mediators of the Board Diversity-Firm Performance Relationship. Journal of Management Studies, 46(5), pp.755-786.
Milliken, F. & Martins, L. (1996). Searching for Common Threads: Understanding the Multiple Effects of Diversity in Organizational Groups. The Academy of Management Review, 21(2), p.402.
Nadeem, M., Zaman, R., & Saleem, I. (2017). Boardroom gender diversity and corporate sustainability practices: Evidence from Australian Securities Exchange listed firms. Journal Of Cleaner Production, 149, 874-885. doi: 10.1016/j.jclepro.2017.02.141
Nse.com.ng. (2020). Retrieved 15 March 2020, from http://www.nse.com.ng/regulation-site/IssuersRules/Sustainability %20 Disclosure%20 Guidelines.pdf.
Rao, K., & Tilt, C. (2016). Board diversity and CSR reporting: an Australian study. Meditari Accountancy Research, 24(2), 182-210. doi: 10.1108/medar-08-2015-0052
Reguera-Alvarado, N., de Fuentes, P., & Laffarga, J. (2015). Does Board Gender Diversity Influence Financial Performance? Evidence from Spain. Journal Of Business Ethics, 141(2), 337-350. doi: 10.1007/s10551-015-2735-9
Ruigrok, W., Peck, S. & Tacheva, S. (2007). Nationality and Gender Diversity on Swiss Corporate Boards. Corporate Governance: An International Review, 15(4), pp.546-557.
Srinidhi, B., Gul, F. & Tsui, J. (2011). Female Directors and Earnings Quality*. Contemporary Accounting Research, 28(5), pp.1610-1644.
Tajfel, H., & Turner, J. C. (2004). The Social Identity Theory of Intergroup Behavior. In J. T. Jost & J. Sidanius (Eds.), Key readings in social psychology. Political psychology: Key readings (p. 276–293). Psychology Press. https://doi.org/10.4324/9780203505984-16
Terjesen, S., Sealy, R. & Singh, V. (2009). Women Directors on Corporate Boards: A Review and Research Agenda. Corporate Governance: An International Review, 17(3), pp.320-337.
Adams, R., de Haan, J., Terjesen, S., & van Ees, H. (2015). Board Diversity: Moving the Field Forward. Corporate Governance: An International Review, 23(2), 77-82. doi: 10.1111/corg.12106
Al-Shaer, H. & Zaman, M. (2016). Board gender diversity and sustainability reporting quality. Journal of Contemporary Accounting & Economics, 12(3), pp.210-222.
Anazonwu, H., Egbunike, F., & Gunardi, A. (2018). Corporate Board Diversity and Sustainability Reporting: A Study of Selected Listed Manufacturing Firms in Nigeria. Indonesian Journal of Sustainability Accounting and Management, 2(1), 65. doi: 10.28992/ijsam.v2i1.52
Arayssi, M., Dah, M., & Jizi, M. (2016). Women on boards, sustainability reporting and firm performance. Sustainability Accounting, Management and Policy Journal, 7(3), 376-401. doi: 10.1108/sampj-07-2015-0055
Bear, S., Rahman, N., & Post, C. (2010). The Impact of Board Diversity and Gender Composition on Corporate Social Responsibility and Firm Reputation. Journal Of Business Ethics, 97(2), 207-221. doi: 10.1007/s10551-010-0505-2
Ben-Amar, W., Chang, M., & McIlkenny, P. (2015). Board Gender Diversity and Corporate Response to Sustainability Initiatives: Evidence from the Carbon Disclosure Project. Journal Of Business Ethics, 142(2), 369-383. doi: 10.1007/s10551-015-2759-1
Bravard, J. (2015). All Boards Need a Technology Expert. Retrieved 19 April 2020, from https://hbr.org/2015/09/all-boards-need-a-technology-expert
Cabeza-García, L., Fernández-Gago, R., & Nieto, M. (2017). Do Board Gender Diversity and Director Typology Impact CSR Reporting? European Management Review, 15(4), 559-575. doi: 10.1111/emre.12143
Campbell, K., & Mínguez-Vera, A. (2007). Gender Diversity in the Boardroom and Firm Financial Performance. Journal of Business Ethics, 83(3), 435-451. doi: 10.1007/s10551-007-9630y
Carter, D., Simkins, B. and Simpson, W. (2003). Corporate Governance, Board Diversity, and Firm Value. The Financial Review, 38(1), pp.33-53.
Conyon, M., & He, L. (2017). Firm performance and boardroom gender diversity: A quantile regression approach. Journal of Business Research, 79, 198-211. doi: 10.1016/j.jbusres.2017.02.006
Conyon, M., & He, L. (2017). Firm performance and boardroom gender diversity: A quantile regression approach. Journal Of Business Research, 79, 198-211. doi: 10.1016/j.jbusres.2017.02.006
Cook, A., & Glass, C. (2015). Diversity begets diversity? The effects of board composition on the appointment and success of women CEOs. Social Science Research, 53, 137-147. doi: 10.1016/j.ssresearch.2015.05.009
DeHaas, D., & Spruell, B. (2015). Changing Course on Boardroom Composition. Retrieved 19 April 2020, from https://www2.deloitte.com/content/dam/Deloitte/us/ Documents/regulatory/us-aers-changingcourseboardroom-482015.pdf DeHaas, D., & Spruell, B. (2015). Changing Course on Boardroom Composition. Retrieved 19 April 2020, from https://www2.deloitte.com/content/dam/
Dezsö, C. and Ross, D. (2012). Does female representation in top management improve firm performance? A panel data investigation. Strategic Management Journal, 33(9), pp.1072-1089.
Dezsö, C., & Ross, D. (2012). Does female representation in top management improve firm performance? A panel data investigation. Strategic Management Journal, 33(9), 1072-1089. doi: 10.1002/smj.1955
Dhaliwal, D., Radhakrishnan, S., Tsang, A., & Yang, Y. (2012). Nonfinancial Disclosure and Analyst Forecast Accuracy: International Evidence on Corporate Social Responsibility Disclosure. The Accounting Review, 87(3), 723-759. Retrieved March 12, 2020, from www.jstor.org/stable/23245628
Erhardt, N., Werbel, J. and Shrader, C. (2003). Board of Director Diversity and Firm Financial Performance. Corporate Governance, 11(2), pp.102-111.
García-Sánchez, I., Suárez-Fernández, O., & Martínez-Ferrero, J. (2019). Female directors and impression management in sustainability reporting. International Business Review, 28(2), 359-374. doi: 10.1016/j.ibusrev.2018.10.007
García-Sánchez, I., Suárez-Fernández, O., & Martínez-Ferrero, J. (2019). Female directors and impression management in sustainability reporting. International Business Review, 28(2), 359-374. doi: 10.1016/j.ibusrev.2018.10.007
Harjoto, M., Laksmana, I., & Lee, R. (2014). Board Diversity and Corporate Social Responsibility. Journal Of Business Ethics, 132(4), 641-660. doi: 10.1007/s10551-014-2343-0
Harjoto, M., Laksmana, I., & Yang, Y. (2019). Board nationality and educational background diversity and corporate social performance. Corporate Governance: The International Journal of Business in Society, 19(2), 217-239. doi: 10.1108/cg-04-2018-0138
Ibrahim, A., & Hanefah, M. (2016). Board diversity and corporate social responsibility in Jordan. Journal of Financial Reporting and Accounting, 14(2), 279-298. doi: 10.1108/jfra-06-2015-0065
Issa, A., & Fang, H. (2019). The impact of board gender diversity on corporate social responsibility in the Arab Gulf states. Gender In Management: An International Journal, 34(7), 577-605. doi: 10.1108/gm-07-2018-0087
Kang, H., Cheng, M. and Gray, S. (2007). Corporate Governance and Board Composition: diversity and independence of Australian boards. Corporate Governance: An International Review, 15(2), pp.194-207.
Kang, Y., Huh, E., & Lim, M. (2019). Effects of Foreign Directors’ Nationalities and Director Types on Corporate Philanthropic Behavior: Evidence from Korean Firms. Sustainability, 11(11), 3132. doi: 10.3390/su11113132
Khan, I., Khan, I., & Saeed, B. (2019). Does board diversity affect quality of corporate social responsibility disclosure? Evidence from Pakistan. Corporate Social Responsibility and Environmental Management. doi: 10.1002/csr.1753
Leung, N., & Cheng, M. (2013). Corporate governance and firm value: Evidence from Chinese state-controlled listed firms. China Journal of Accounting Research, 6(2), 89-112. doi: 10.1016/j.cjar.2013.03.002
Liu, Y., Wei, Z., & Xie, F. (2014). Do women directors improve firm performance in China? Journal Of Corporate Finance, 28, 169-184. doi: 10.1016/j.jcorpfin.2013.11.016
Masulis, R., Wang, C., & Xie, F. (2012). Globalizing the boardroom - The effects of foreign directors on corporate governance and firm performance. Journal Of Accounting and Economics, 53(3), 527-554. doi: 10.1016/j.jacceco.2011.12.003
Miller, T. & del Carmen Triana, M. (2009). Demographic Diversity in the Boardroom: Mediators of the Board Diversity-Firm Performance Relationship. Journal of Management Studies, 46(5), pp.755-786.
Milliken, F. & Martins, L. (1996). Searching for Common Threads: Understanding the Multiple Effects of Diversity in Organizational Groups. The Academy of Management Review, 21(2), p.402.
Nadeem, M., Zaman, R., & Saleem, I. (2017). Boardroom gender diversity and corporate sustainability practices: Evidence from Australian Securities Exchange listed firms. Journal Of Cleaner Production, 149, 874-885. doi: 10.1016/j.jclepro.2017.02.141
Nse.com.ng. (2020). Retrieved 15 March 2020, from http://www.nse.com.ng/regulation-site/IssuersRules/Sustainability %20 Disclosure%20 Guidelines.pdf.
Rao, K., & Tilt, C. (2016). Board diversity and CSR reporting: an Australian study. Meditari Accountancy Research, 24(2), 182-210. doi: 10.1108/medar-08-2015-0052
Reguera-Alvarado, N., de Fuentes, P., & Laffarga, J. (2015). Does Board Gender Diversity Influence Financial Performance? Evidence from Spain. Journal Of Business Ethics, 141(2), 337-350. doi: 10.1007/s10551-015-2735-9
Ruigrok, W., Peck, S. & Tacheva, S. (2007). Nationality and Gender Diversity on Swiss Corporate Boards. Corporate Governance: An International Review, 15(4), pp.546-557.
Srinidhi, B., Gul, F. & Tsui, J. (2011). Female Directors and Earnings Quality*. Contemporary Accounting Research, 28(5), pp.1610-1644.
Tajfel, H., & Turner, J. C. (2004). The Social Identity Theory of Intergroup Behavior. In J. T. Jost & J. Sidanius (Eds.), Key readings in social psychology. Political psychology: Key readings (p. 276–293). Psychology Press. https://doi.org/10.4324/9780203505984-16
Terjesen, S., Sealy, R. & Singh, V. (2009). Women Directors on Corporate Boards: A Review and Research Agenda. Corporate Governance: An International Review, 17(3), pp.320-337.
Published
2025-04-30
How to Cite
Gbadebo, A. (2025). MANAGEMENT DIVERSITY AND CORPORATE SOCIAL RESPONSIBILITY OF QUOTED FIRMS IN NIGERIA. J-MACC : Journal of Management and Accounting, 8(1), 168-185. https://doi.org/https://doi.org/10.52166/j-macc.v8i1.9353
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