Corporate Social Responsibility and Corporate Governance: A cognitive approach

TL;DR

This paper reviews how cognitive and demographic factors of board members influence the relationship between corporate governance and CSR, proposing a theoretical model to clarify these links.

Contribution

It introduces a new theoretical model emphasizing cognitive and demographic aspects of boards and CSR committees' roles in linking governance to CSR.

Findings

Board diversity impacts CSR outcomes

CSR committees' attributes influence governance-CSR relationship

Cognitive characteristics of directors provide new insights

Abstract

This chapter aims to critically review the existing literature on the relationship between corporate social responsibility (CSR) and corporate governance features. Drawn on management and corporate governance theories, we develop a theoretical model that makes explicit the links between board diversity, CSR committees' attributes, CSR and financial performance. Particularly, we show that focusing on the cognitive and demographic characteristics of board members could provide more insights on the link between corporate governance and CSR. We also highlight how the functioning and the composition of CSR committees, could be valuable to better understand the relationship between corporate governance and CSR.