The link among board characteristics, corporate social responsibility performance, and financial performance: Evidence from the hospitality and tourism industry

The aim of this study is twofold: to explore whether board characteristics (i.e. a sustainability committee, board independence, board diversity, and board diligence) lead to greater corporate social responsibility (CSR) performance, and to test whether CSR performance enhances firms' financial...

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Bibliographic Details
Published in:Tourism management perspectives 2020-07, Vol.35, p.100714, Article 100714
Main Authors: Uyar, Ali, Kilic, Merve, Koseoglu, Mehmet Ali, Kuzey, Cemil, Karaman, Abdullah S.
Format: Article
Language:English
Subjects:
CSR
Environmental
ESG
Firm performance
Governance
Social
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Summary:The aim of this study is twofold: to explore whether board characteristics (i.e. a sustainability committee, board independence, board diversity, and board diligence) lead to greater corporate social responsibility (CSR) performance, and to test whether CSR performance enhances firms' financial performance in the hospitality and tourism (H&T) industry. Data were collected from the Thomson Reuters Eikon database for the H&T firms listed there between 2011 and 2018. We employed panel data analysis, after which we ran robustness tests. The results indicated that having a CSR committee and female directors on the board are robust factors driving firms to show superior CSR performance in all dimensions, including environmental, social, and governance (ESG). Independent directors and directors' diligence selectively enhance the overall CSR score and individual pillars of CSR. Investigating the relationship between CSR performance and firms' financial performance did not produce a significant outcome. The findings propose a straightforward roadmap for H&T firms and policymakers to identify characteristics of CSR-friendly boards. •Female directors on boards is highly influential in improving all CSR dimensions.•Disciplined directors contribute to the social and governance pillars of CSR engagement.•Independent board of directors is particularly effective in boosting governance pillar of CSR.•CSR committees significantly contributes to CSR engagement of firms in all dimensions.•CSR performance does not enhance financial performance.
ISSN:2211-9736
2211-9744
DOI:10.1016/j.tmp.2020.100714