Abstract

Since the word Corporate Social Responsibility (CSR) was initially used decades ago, only a few efforts have been made to determine the relationship between gender diversity and CSR in the Sri Lankan context. Therefore, this study shows a willingness to analyze the impact of gender diversity on CSR in Sri Lanka based on empirical data and knowledge gaps in this field. The data was collected from 133 companies, by using a structured questionnaire. Therefore, this study is quantitative. Secondary data was collected from the annual reports for 2021. The data analysis included the descriptive, and correlation, by using Statistical Package for Social Science (SPSS) and regression analysis by using SMART PLS3. The findings revealed that gender diversity and legal responsibility have a significant impact while economic, ethical, and philanthropic have no impact on Sri Lankan companies. Although the finding of the study is added to the stakeholder theory. This study is only limited to the listed companies in Sri Lanka the sample consists of 164 companies and only 133 responses have been obtained. Furthermore, there is a possibility of not gathering enough data, and the issue of social desirability bias exists. As Sri Lanka is a developing country companies have to make more policies to achieve sustainable goals by imposing new rules to ensure that women’s representation is on board. Additionally, representing female directors on boards is significant for the economy since women contribute to both social and economic development.

Keywords: Corporate Social Responsibility, Gender Diversity, Economic Responsibility, Ethical Responsibility, Legal Responsibility, Philanthropic Responsibility

*This paper is a finalist in the International Research Competitions 2022, Category 2 Undergraduate

References

Bear, S., Rahman, N., & Post, C. (2010). The Impact of Board Diversity and Gender Composition on Corporate Social Responsibility and Firm Reputation. Journal of Business Ethics, 97(2), 207–221. https://doi.org/10.1007/s10551-010-0505-2

Boukattaya, S., & Omri, A. (2021). Impact of board gender diversity on corporate social responsibility and irresponsibility: Empirical evidence from france. Sustainability (Switzerland), 13(9). https://doi.org/10.3390/su13094712

Cabeza-García, L., Fernández-Gago, R., & Nieto, M. (2018). Do Board Gender Diversity and Director Typology Impact CSR Reporting? European Management Review, 15(4), 559–575. https://doi.org/10.1111/emre.12143

Ehie, I. C. (2016). Examining the corporate social responsibility orientation in developing countries: An empirical investigation of the Carroll’s CSR pyramid. International Journal of Business Governance and Ethics, 11(1), 1–20. https://doi.org/10.1504/IJBGE.2016.076337

Fakir, A. N. M. A., & Jusoh, R. (2020). Board gender diversity and corporate sustainability performance: Mediating role of enterprise risk management. Journal of Asian Finance, Economics and Business, 7(6), 351–363. https://doi.org/10.13106/JAFEB.2020.VOL7.NO6.351

Fernando, D., Dissanayake, D.H.S.W., Deshika, N. P. T. (2020). Women in Boards and Sustainability : Empirical evidence from Sri Lanka. 76–77.

Foster, E. A. (2016). Gender and sustainable development. Handbook on Gender in World Politics, 446–454. https://doi.org/10.4337/9781783470624.00064

García-Sánchez, I.-M. G.-S. and A. (2020). Corporate Social Responsibility during COVID-19 Pandemic.

Issa, A., & Fang, H. X. (2019). The impact of board gender diversity on corporate social responsibility in the Arab Gulf states. Gender in Management, 34(7), 577–605. https://doi.org/10.1108/GM-07-2018-0087

Khan, M. A. (2017). Impact of Gender Diversity of Board on Corporate Social Responsibility of Firm : A case of Pakistan. February, 84.

Quintana-García, C., Marchante-Lara, M., & Benavides-Chicón, C. G. (2018). Social responsibility and total quality in the hospitality industry: does gender matter? Journal of Sustainable Tourism, 26(5), 722–739. https://doi.org/10.1080/09669582.2017.1401631

Rathnayaka Mudiyanselage, N. C. S. (2018). Board involvement in corporate sustainability reporting: evidence from Sri Lanka. Corporate Governance (Bingley), 18(6), 1042–1056. https://doi.org/10.1108/CG-10-2017-0252

Rupawaththa, R. G. M. N. (2017). Do Women in Top Management Affect Firm Performances? Analysis of Public Quoted Companies in Sri Lanka. SSRN Electronic Journal, 2016. https://doi.org/10.2139/ssrn.2908791

Shamil, M. M., Shaikh, J. M., Ho, P. L., & Krishnan, A. (2014). The influence of board characteristics on sustainability reporting Empirical evidence from Sri Lankan firms. Asian Review of Accounting, 22(2), 78–97. https://doi.org/10.1108/ARA-09-2013-0060

Thambugala, M. T. (2020). Board Characteristics and Corporate Social Responsibility Practices : In Upper Echelon Theory Perspective Evidence from Sri Lankan Firms Board Characteristics and Corporate Social Responsibility Practices : In Upper Echelon Theory Perspective Evidence fro. November, 0–28.

Wellalage, N. H., & Locke, S. (2013). Corporate governance, board diversity and firm financial performance: New evidence from Sri Lanka. International Journal of Business Governance and Ethics, 8(2), 116–136. https://doi.org/10.1504/IJBGE.2013.054416

Wu, Q., Furuoka, F., & Lau, S. C. (2021). Corporate social responsibility and board gender diversity: a meta-analysis. Management Research Review, 2022(November), 2020–2022. https://doi.org/10.1108/MRR-03-2021-0236

Yarram, S. R., & Adapa, S. (2021). Board gender diversity and corporate social responsibility: Is there a case for critical mass? Journal of Cleaner Production, 278, 123319. https://doi.org/10.1016/j.jclepro.2020.123319

Yasser, Q. R., Al Mamun, A., & Ahmed, I. (2017). Corporate Social Responsibility and Gender Diversity: Insights from Asia Pacific. Corporate Social Responsibility and Environmental Management, 24(3), 210–221. https://doi.org/10.1002/csr.1400