Corporate social responsibility in the boardroom: evidence from a developing context

Date

2024

Authors

Ghassab, E.E.
Tilt, C.A.
Rao, K.K.

Editors

Hunjra, A.I.
Hussainey, K.

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Book chapter

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Source details - Title: The Emerald Handbook of Ethical Finance and Corporate Social Responsibility: A Framework for Sustainable Development, 2024 / Hunjra, A.I., Hussainey, K. (ed./s), Ch.8, pp.151-171

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Abstract

Drawing on new insights from the perspectives and experiences of board members, the purpose of this study is to determine the board attributes that influence board roles in improving the integration of corporate social responsibility (CSR) into corporate governance structures. In total, 10 in-depth semi-structured interviews were conducted with directors of listed Jordanian companies to explore their perceptions of the effect of board of directors' composition on CSR and CSR disclosure (CSRD). The key findings show that boards with a diverse range of directors is essential independent/nonexecutive members, directors with business and/or accounting backgrounds, and foreign members to determine if they aim to better manage their CSR. To take CSR to the next level in the Arab region, we need to strengthen corporate governance mechanisms, and put more pressures on companies to make changes in board composition. For example, we suggest that companies that appoint business-educated and foreign members to their boards tend to engage in more impactful social and environmental-related activities and reflect their sustainable development more effectively. The study responds to calls for further research adopting qualitative methods, such as case studies and interviews in order to obtain a complete and in-depth understanding of the influence of board composition on CSR/CSRD. The findings provide useful insights for practice, policymakers, and future research.

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Copyright 2024 Esam Emad Ghassab, Carol Ann Tilt and Kathyayini Kathy Rao. Access Condition Notes: Accepted manuscript available open access

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