The Impact of Board Diversity on Corporate Social Responsibility and Firm Reputation

Abstract

This study examines the Impact of Board Diversity on Corporate Social Responsibility and Firm Reputation, focusing on the roles of board diversity as independent variables with factors (gender, age, size, and independence) while Firm Reputation (FR) and Corporate Social Responsibility (CSR) as dependent variables. Using secondary data from 20 firms across various industries, with 100 observations, the research explores four dimensions of board diversity: gender, age, size, and independence. The study employs regression analysis and correlation coefficients to evaluate the causal and inferential connections among board diversity, CSR, and Firm Reputation. The findings reveal that specific board diversity attributes, such as gender and age, significantly influence firm reputation. CSR is identified as a critical dependent variable that strengthens the relationship between board diversity and Firm Reputation. Notably, female board directors not only positively impact Firm Reputation but also play a pivotal role in advancing CSR initiatives. Board size and age diversity show partial effectiveness, with adaptability and efficiency emerging as key factors within these dimensions. Grounded in resource dependence theory, the study highlights the underexplored interplay between board diversity, firm reputation, and CSR. It offers actionable recommendations, emphasizing the need for firms to prioritize CSR activities and diverse board composition as integral to corporate management strategies. The research also calls on policymakers to promote regulatory incentives, such as improved disclosure requirements, to encourage compliance and enhance governance practices. Although this study adopts a crosssectional research design based on secondary data, it provides a robust empirical foundation for further longitudinal research and exploring industry-specific patterns. The findings offer valuable insights for academics, practitioners, and policymakers striving to align governance, diversity, and sustainability for long-term corporate success.