Board members in the service industry

An empirical examination of the relationship between corporate social responsibility orientation and directorial type

Nabil A. Ibrahim, Donald P. Howard, John P. Angelidis

    Research output: Contribution to journalArticle

    108 Citations (Scopus)

    Abstract

    One area of business performance of particular interest to both scholars and practitioners is corporate social responsibility. The notion that organizations should be attentive to the needs of constituents other than shareholders has been investigated and vigorously debated for over two decades. This has provoked an especially rich and diverse literature investigating the relationship between business and society. As a result, researchers have urged the study of the profiles and backgrounds of corporate upper echelons in order to better understand this relationship. There is ample evidence that corporations have in recent years increased the proportion of outside directors on their boards. This has been partly in reaction to increased interest in the corporate social responsiveness of business organizations and suggestions that the board of directors could play a unique role in this area. The expectation on the part of practitioners, researchers, and governmental regulators is that outside directors will advocate greater corporate responsiveness to society's needs by playing a more active role in overseeing managerial decisions. The purpose of this study is to partially fill a void in the literature by determining whether or not these expectations are justified, particularly in the service industry. Data were collected as part of a larger cross-national study of corporate social responsibility. A multivariate analysis of variance (MANOVA) of the results of a survey of 307 board members (198 outside and 109 inside directors) indicates that outside directors exhibit greater concern about the discretionary component of corporate responsibility and a weaker orientation toward economic performance. No significant differences between the two groups were observed with respect to the legal and ethical dimensions of corporate social responsibility. Some explanations as well as limited generalizations and implications are developed.

    Original languageEnglish (US)
    Pages (from-to)393-401
    Number of pages9
    JournalJournal of Business Ethics
    Volume47
    Issue number4
    DOIs
    StatePublished - Nov 1 2003

    Fingerprint

    social responsibility
    director
    examination
    industry
    business relationship
    board of directors
    shareholder
    analysis of variance
    multivariate analysis
    performance
    corporation
    responsibility
    Outside directors
    Service industries
    Corporate Social Responsibility
    Industry
    society
    evidence
    economics
    Responsiveness

    ASJC Scopus subject areas

    • Business and International Management
    • Business, Management and Accounting(all)
    • Arts and Humanities (miscellaneous)
    • Economics and Econometrics
    • Law

    Cite this

    Board members in the service industry : An empirical examination of the relationship between corporate social responsibility orientation and directorial type. / Ibrahim, Nabil A.; Howard, Donald P.; Angelidis, John P.

    In: Journal of Business Ethics, Vol. 47, No. 4, 01.11.2003, p. 393-401.

    Research output: Contribution to journalArticle

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