Board composition and CSR performance is Swedish Listed firms : Board insiders, ownership concentration and CSR performance
Abstract: It is no longer surprising that attention paid to corporate social responsibility (CSR) has increased lately, which could be due to the fact that firms action have negative or positive impacts on their stakeholders–employees, customers, investors, suppliers and community. It is the board responsibility to ensure firms pay attention to CSR matters, therefore, board composition will relatively play significant role in CSR implementation. However, prior studies have focus on board diversity, female proportion and independent directors and paid very little attention to inside board member and CSR. In order to study inside board member and CSR, the study found it interesting to look at the institutional norms of Swedish because different institutions structure board different and as such would likely influence CSR differently. The study therefore, focus on ownership concentration, employees representative director (ERD), and CEO presence on board and found out that firm with ownership concentration and also firms having CEO on board have negative relationship with CSR, meanwhile ERD have a positive relationship with social responsibilities. According to the findings in general board comprises of insiders have negative relationship with overall CSR (economic, governance and environmental concern) meanwhile strictly independent directors (of management, CEO, major shareholders, and firm) and female proportion have significant relationship with CSR.
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