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Responsible corporate governance: Towards a stakeholder board of directors?

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Author Info

  • Ayuso, Silvia

    (IESE Business School)

  • Argandoña, Antonio

    ()
    (IESE Business School)

Abstract

The central question posed in this paper will be how to organize board composition in order to ensure responsible corporate governance both from a CSR and a good governance perspective. Adopting a stakeholder approach to corporate governance, we analyze the arguments given by different theoretical approaches for linking specific board composition with financial performance and CSR, and discuss the empirical research conducted. Despite the inconclusive findings of empirical research, it can be argued that diverse stakeholders on the board will promote CSR activities of the firm, but at the same time will increase board capital (which ultimately may lead to a better financial performance). Finally, we propose a model for selecting board members based both on ethical and pragmatic arguments.

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Bibliographic Info

Paper provided by IESE Business School in its series IESE Research Papers with number D/701.

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Length: 29 pages
Date of creation: 07 Jul 2007
Date of revision:
Handle: RePEc:ebg:iesewp:d-0701

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Postal: IESE Business School, Av Pearson 21, 08034 Barcelona, SPAIN
Web page: http://www.iese.edu/
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Related research

Keywords: Board composition; corporate governance; corporate social responsibility; financial performance; stakeholders;

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References

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Citations

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Cited by:
  1. Dalilawati Zainal & Norhayah Zulkifli & Zakiah Saleh, 2013. "Corporate Board Diversity in Malaysia: A Longitudinal Analysis of Gender and Nationality Diversity," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 3(1), pages 136-148, January.
  2. Chung, Huimin & Lin, Jane Raung & Yang, Ying Sui, 2012. "How do entrenched managers handle stakeholders interests?," Journal of Multinational Financial Management, Elsevier, vol. 22(5), pages 263-277.
  3. Hazar Ben Barka & Sarah Mokaddem, 2012. "Nature of the Director's profile and Knowledge Transfer in Corporate Social Responsibility: A Literature-based Approach," Post-Print hal-00692350, HAL.
  4. Dulacha Barako & Alistair Brown, 2008. "Corporate social reporting and board representation: evidence from the Kenyan banking sector," Journal of Management and Governance, Springer, vol. 12(4), pages 309-324, November.

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