Board Capital, CSR Engagement and Firm Performance: Empirical Evidence From India

Abstract

Extant literature acknowledges the role of corporate social responsibility engagement and sustainability practices on the financial success of business enterprises. Consequently many studies also examine the various drivers of CSR engagement- the process through which firms identify activities to fulfil their social and environmental commitments, allocate resources and execute them. One of the major drivers of firm level CSR engagement is identified by current literature is the board of directors. Studies that explore the relationship between corporate boards and CSR engagement of firms have been mainly conducted in developed markets using the perspective of Agency theory. However, in recent years, corporate social responsibility has emerged as a significant differentiator of firms even in emerging markets. Yet, studies that investigate Board-CSR engagement dynamics in emerging markets are limited. Moreover, this relationship is not explored comprehensively from a resource dependence perspective which some scholars consider as a better theory to explain the workings of corporate boards and their impact on firm outcomes in emerging markets. This thesis attempts to address the research gap by studying corporate boards- corporate social responsibility engagement relationship from a resource dependence perspective in emerging markets...