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Responsible corporate governance: Towards a stakeholder board of directors?

  • Ayuso, Silvia

    (IESE Business School)

  • Argandoña, Antonio

    ()

    (IESE Business School)

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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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
Contact details of provider: Postal: IESE Business School, Av Pearson 21, 08034 Barcelona, SPAIN
Web page: http://www.iese.edu/

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