The relationship between gender diversity and corporate social responsibility

Abstract

A couple of decades have passed since Corporate social responsibility and sustainability has become an integral element of the business plans of many corporations. There has been a growing attention to corporate social responsibility (CSR). Nowadays companies have come to realize the risks of ignoring CSR as well as the importance of being environmentally responsible. Yet little is done when it comes to a balanced gender profile at board level. This paper reviews the existing literature on corporate social responsibility, in particular gender diversity in board. It explores how board diversity and the number of women on boards affect firms’ corporate social responsibility performance and reputation. The aim of the study is to analyze the relationship between gender diversity and corporate responsibility stressing the role that women directors play in the development of CSR in organizations, and contribute to sustainable development. The analysis confirms a positive link between board gender diversity and corporate social responsibility. The presence of women on corporate boards increase board effectiveness through reducing corruption, ensuring better financial performance, enhancing philanthropy and quality of communication. Firms with a higher percentage of women on the board of directors are more socially responsible and have better corporate reputation.