Corporate social performance and board gender diversity: the moderating role of governance

Abstract

Purpose Drawing on legitimacy and upper-echelon theory, this paper aims to investigate the moderating role of corporate governance in the relationship between corporate social performance (CSP) and board gender diversity (BGD). Design/methodology/approach Using Morgan Stanley Capital International measures of social and governance performance, the authors use 2,950 firm-year observations from US companies for the years 2016–2020 to show that good performance on social issues drives BGD. Findings The panel data model indicates that the relationship between CSP and BGD is strengthened when firms display robust corporate governance. Originality/value This study contributes to the extant literature through empirical consideration of CSP as a predictor of BGD, a relationship that has rarely been examined. It further highlights the significant role of corporate governance in ensuring that women have access to corporate boards. Discussion and findings highlight that social performance and governance may significantly contribute to the diversity of socially cognizant boards.