BOARD COMPOSITION AND CORPORATE CONTRIBUTIONS RELATED TO CORONAVIRUS 2019 DISEASE: A REVIEW

Abstract

The spread of COVID-19 has led to unexpected impacts on the country. Not only health, but the pandemic also affects the social, educational, and economic aspects which need some attention by the government as well as corporate citizens. As a group of individuals who govern the direction of a company, the board of directors plays an important role in shaping the company's philanthropic policy, especially in the challenging COVID-19 pandemic environment. Through the review of relevant literature, particularly to corporate governance and corporate philanthropy, this article discusses how the diversity of board members can influence decisions on the determination of COVID-19 related corporate contributions. Determining the type and amount of contributions to relevant recipients is crucial, particularly for groups of stakeholders who are really in need. Thus, relevant and diverse backgrounds of board members are able to bring wider perspectives and points of view as well as the understanding of the problems and needs of different stakeholders. Diversity in terms of education, experience, gender, and community influence is believed to bring different contributions in tackling problems posed by COVID-19. The discussion in this article contributes to the enrichment of the corporate philanthropy literature. It also gives the industry a perspective on the composition of the company's board of directors.