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Board cultural diversity and bank social performance: The mediating role of corporate social responsibility strategy

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Listed:
  • Francesco Gangi
  • Nicola Varrone
  • Maria Coscia

Abstract

The study investigates how board cultural diversity (BCD) affects bank stakeholder engagement through improved corporate social performance (CSP) and whether banks' corporate social responsibility (CSR) strategy mediates the relationship between BCD and banks' social performance. Adopting an international sample of 379 banks from 2010 to 2019, we found that BCD improves engagement in socially responsible issues in the banking sector. Moreover, we show a mediating role of strategic CSR on the relationship between BCD and banks' social performance. Hence, we contribute to the research on the role of corporate governance mechanisms as drivers of CSR engagement. Furthermore, based on the mediation effect of strategic CSR, we advance the discussion on the link between BCD and banks' social performance. Our findings provide implications for banks and policy‐makers, indicating the opportunity to promote cultural diversity, which supports socially responsible banking, while a CSR strategy positively impacts the stakeholder approach in the banking industry.

Suggested Citation

  • Francesco Gangi & Nicola Varrone & Maria Coscia, 2023. "Board cultural diversity and bank social performance: The mediating role of corporate social responsibility strategy," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 32(4), pages 1310-1320, October.
    • Handle: RePEc:wly:buseth:v:32:y:2023:i:4:p:1310-1320
    DOI: 10.1111/beer.12580
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    3. Sohel Mehedi & Md. Maniruzzaman & Md Akhtaruzzaman, 2024. "Board Flexibility in Diversity, Experienced CEOs and Corporate Sustainability Disclosure: Evidence from the Emerging Market," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 25(2), pages 261-282, June.

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