IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i5p2061-d1601451.html
   My bibliography  Save this article

Corporate Social Responsibility-Oriented Boards and Employee Welfare: Does Culture Matter?

Author

Listed:
  • Ngoc Bao Vuong

    (Graduate School of Humanities and Social Sciences, Hiroshima University, Higashihiroshima 739-8524, Japan)

Abstract

This paper explores the relationship between a board’s corporate social responsibility (CSR) orientation and its company’s labor policies. Using data from 1950 non-financial firms in 21 emerging economies from 2010 to 2023, we found evidence that a more CSR-oriented board (as indicated by high percentages of women and independent directors and the existence of the audit committee’s financial expertise and CSR committee) can result in better employee treatment. In addition, our empirical results suggest that this board attribute–employee welfare relationship is influenced by the national culture. Specifically, the positive impact of the board’s CSR orientation on corporate labor practices is more prevalent in consensus-oriented and indulgent societies. These findings provide useful information that policymakers and regulators can exploit to reform corporate governance regulations to improve the working environment, especially for employees in developing countries.

Suggested Citation

  • Ngoc Bao Vuong, 2025. "Corporate Social Responsibility-Oriented Boards and Employee Welfare: Does Culture Matter?," Sustainability, MDPI, vol. 17(5), pages 1-16, February.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:5:p:2061-:d:1601451
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/5/2061/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/5/2061/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Schochet, Sholom & Benlemlih, Mohammed & Jaballah, Jamil, 2022. "Is corporate tax avoidance related to employee treatment?," Journal of Empirical Finance, Elsevier, vol. 69(C), pages 63-80.
    2. Kam C. Chan & Joanne Li, 2008. "Audit Committee and Firm Value: Evidence on Outside Top Executives as Expert‐Independent Directors," Corporate Governance: An International Review, Wiley Blackwell, vol. 16(1), pages 16-31, January.
    3. Fauver, Larry & McDonald, Michael B. & Taboada, Alvaro G., 2018. "Does it pay to treat employees well? International evidence on the value of employee-friendly culture," Journal of Corporate Finance, Elsevier, vol. 50(C), pages 84-108.
    4. Amama Shaukat & Yan Qiu & Grzegorz Trojanowski, 2016. "Board Attributes, Corporate Social Responsibility Strategy, and Corporate Environmental and Social Performance," Journal of Business Ethics, Springer, vol. 135(3), pages 569-585, May.
    5. Jose-Manuel Prado-Lorenzo & Isabel-Maria Garcia-Sanchez, 2010. "The Role of the Board of Directors in Disseminating Relevant Information on Greenhouse Gases," Journal of Business Ethics, Springer, vol. 97(3), pages 391-424, December.
    6. Hilary, Gilles & Hui, Kai Wai, 2009. "Does religion matter in corporate decision making in America?," Journal of Financial Economics, Elsevier, vol. 93(3), pages 455-473, September.
    7. S. Schochet & M. Benlemlih & Jamil Jaballah, 2022. "Is Corporate Tax Avoidance Related to Employee Treatment?," Post-Print hal-04454690, HAL.
    8. Dimitratos, Pavlos & Petrou, Andreas & Plakoyiannaki, Emmanuella & Johnson, Jeffrey E., 2011. "Strategic decision-making processes in internationalization: Does national culture of the focal firm matter?," Journal of World Business, Elsevier, vol. 46(2), pages 194-204, April.
    9. S. Schochet & M. Benlemlih & Jamil Jaballah, 2022. "Is Corporate Tax Avoidance Related to Employee Treatment?," Grenoble Ecole de Management (Post-Print) hal-04454690, HAL.
    10. Ben-Nasr, Hamdi & Ghouma, Hatem, 2018. "Employee welfare and stock price crash risk," Journal of Corporate Finance, Elsevier, vol. 48(C), pages 700-725.
    11. Christine Mallin & Giovanna Michelon & Davide Raggi, 2013. "Monitoring Intensity and Stakeholders’ Orientation: How Does Governance Affect Social and Environmental Disclosure?," Journal of Business Ethics, Springer, vol. 114(1), pages 29-43, April.
    12. Xuhui Peng & Tian Qi & Gang Wang, 2022. "Board Gender Diversity, Corporate Social Disclosures, and National Culture," SAGE Open, , vol. 12(4), pages 21582440221, October.
    13. Arifur Khan & Mohammad Muttakin & Javed Siddiqui, 2013. "Corporate Governance and Corporate Social Responsibility Disclosures: Evidence from an Emerging Economy," Journal of Business Ethics, Springer, vol. 114(2), pages 207-223, May.
    14. Saeed, Abubakr, 2021. "The impact of employee friendly practices on dividend payments: Evidence from emerging economies," Journal of Business Research, Elsevier, vol. 135(C), pages 592-605.
    15. Stephen Bear & Noushi Rahman & Corinne Post, 2010. "The Impact of Board Diversity and Gender Composition on Corporate Social Responsibility and Firm Reputation," Journal of Business Ethics, Springer, vol. 97(2), pages 207-221, December.
    16. Heather R. Dixon-Fowler & Alan E. Ellstrand & Jonathan L. Johnson, 2017. "The Role of Board Environmental Committees in Corporate Environmental Performance," Journal of Business Ethics, Springer, vol. 140(3), pages 423-438, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xixiong Xu & Maochuan Wang, 2024. "Confucianism and employee treatment: Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 2649-2669, July.
    2. Govindan, Kannan & Kilic, Merve & Uyar, Ali & Karaman, Abdullah S., 2021. "Drivers and value-relevance of CSR performance in the logistics sector: A cross-country firm-level investigation," International Journal of Production Economics, Elsevier, vol. 231(C).
    3. Ahmed A. Sarhan & Basil Al‐Najjar, 2023. "The influence of corporate governance and shareholding structure on corporate social responsibility: The key role of executive compensation," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 4532-4556, October.
    4. Akrum Helfaya & Tantawy Moussa, 2017. "Do Board's Corporate Social Responsibility Strategy and Orientation Influence Environmental Sustainability Disclosure? UK Evidence," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1061-1077, December.
    5. Jonathan Taglialatela & Ivan Miroshnychenko & Roberto Barontini & Francesco Testa, 2024. "Talk or walk? The board of directors and firm environmental strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 2890-2910, May.
    6. P. Fahad & P. Mubarak Rahman, 2020. "Impact of corporate governance on CSR disclosure," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 17(2), pages 155-167, September.
    7. Eduardo Ortas & Igor Álvarez & Eugenio Zubeltzu, 2017. "Firms’ Board Independence and Corporate Social Performance: A Meta-Analysis," Sustainability, MDPI, vol. 9(6), pages 1-26, June.
    8. Samuel Benjamin & Mansi Mansi & Rakesh Pandey, 2020. "Board gender composition, board independence and sustainable supply chain responsibility," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(4), pages 3305-3339, December.
    9. Kuzey, Cemil & Fritz, Morgane M.C. & Uyar, Ali & Karaman, Abdullah S., 2022. "Board gender diversity, CSR strategy, and eco-friendly initiatives in the transportation and logistics sector," International Journal of Production Economics, Elsevier, vol. 247(C).
    10. Gwenael Roudaut, 2017. "The Representation of Managers, Shareholders and other Stakeholders inside the Boardroom: Does it Matter for CSR Commitment? ," Working Papers hal-01623944, HAL.
    11. Huang, Xuanhao & Zhu, Linping & Yang, Qiuyi & Xiong, Xuemei, 2024. "Enterprise digital transformation and employee treatment: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 96(PC).
    12. Karaman, Abdullah S. & Elbardan, Hany & Uyar, Ali & Govindan, Kannan, 2025. "Board composition and sustainable supply chain management: Environmental committee's role," International Journal of Production Economics, Elsevier, vol. 283(C).
    13. Tamer Elshandidy & Mohamed Elsayed & Hossam Omara & Abhijit Sharma, 2025. "Board diversity faultlines and textual social and environmental disclosures," Review of Quantitative Finance and Accounting, Springer, vol. 64(3), pages 1129-1163, April.
    14. Nurlan Orazalin & Mady Baydauletov, 2020. "Corporate social responsibility strategy and corporate environmental and social performance: The moderating role of board gender diversity," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1664-1676, July.
    15. Nurlan Orazalin, 2020. "Do board sustainability committees contribute to corporate environmental and social performance? The mediating role of corporate social responsibility strategy," Business Strategy and the Environment, Wiley Blackwell, vol. 29(1), pages 140-153, January.
    16. ChungMing Lau & Yuan Lu & Qiang Liang, 2016. "Corporate Social Responsibility in China: A Corporate Governance Approach," Journal of Business Ethics, Springer, vol. 136(1), pages 73-87, June.
    17. Bolourian, Soudabeh & Alinaghian, Leila & Angus, Andrew, 2023. "Exploring the role of board-level corporate social responsibility committees in corporate social responsibility performance: A configurational approach," Journal of Business Research, Elsevier, vol. 169(C).
    18. Jeanne, Amar & Demaria, Samira & Rigot, Sandra, 2023. "What are the drivers of corporates' climate transparency? Evidence from the S&P 1200 index," Ecological Economics, Elsevier, vol. 213(C).
    19. Nurshahirah Abd Majid & Amar Hisham Jaaffar, 2023. "The Effect of Women’s Leadership on Carbon Disclosure by the Top 100 Global Energy Leaders," Sustainability, MDPI, vol. 15(11), pages 1-26, May.
    20. Giuliana Birindelli & Stefano Dell’Atti & Antonia Patrizia Iannuzzi & Marco Savioli, 2018. "Composition and Activity of the Board of Directors: Impact on ESG Performance in the Banking System," Sustainability, MDPI, vol. 10(12), pages 1-20, December.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:5:p:2061-:d:1601451. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.