Impact of Directors’ Networks on Corporate Social Responsibility: A Cross Country Study

Abstract

We investigate the impact of directors' networks on corporate social responsibility (CSR) activities by using an unbalanced panel data of 2023 publicly listed firms from 17 countries during 2003–2018. Drawing on network theory, stakeholder theory, and institutional theory, we find that directors' networks is positively related to their decision of CSR activities. Additionally, we find a positive relation between directors' networks and CSR during financial crises. Our results still hold after a set of sensitivity tests. The findings in our study expand the academic literature related to directors' networks and CSR activities, and assist policymakers and investors in understanding the importance of directors' networks as determining factor of CSR policies.