Boards and CSR: an emerging market perspective

Abstract

PurposeThe purpose of this paper is to understand the influence of family ownership and governance mechanisms on corporate social responsibility (CSR) scores through the lens of the principal–principal (PP) perspective.Design/methodology/approachUsing a random-effects model the authors sample 21 hundred board members across a 101 listed Mexican companies from 2008 to 2020.FindingsThe paper finds that board independence and board committees are positively related to CSR scores.Practical implicationsResults of this paper suggest that stronger governance can enhance CSR: board independence and committees can be a counterbalancing mechanism serving stakeholders aiming to improve CSR scores.Originality/valueMost CSR research has focused on determinants and outcomes of CSR. The authors analyze an unexplored aspect of the corporate governance (CG) and CSR relationship: the potential influence of family ownership and governance mechanisms on CSR.