Evaluating Board Roles performance in adopting CSR practices

Abstract

Purpose: The purpose of this paper is to provide understanding in evaluating the board roles that make a board effective in the performance of adopting the CSR practices. This paper examining directors' perception in three main roles: Monitoring, Service and Strategic, which provide tools for critically understanding how the board adds the value in moving the organization towards more social responsible practices. The Stakeholder theory is used to distinguish the influence of the three main roles in adopting of CSR practices. Design/ Methodology: Primary data was collected for this research. Primary data was collected by conducting structured questionnaires with a sample size of 461 directors from Saudi listed companies for the purpose. Findings: The results show that an appropriate mix of directors' roles and the development of a sound board monitoring and service roles are most crucial determinants of adopting CSR in Saudi listed companies. Originality/value: As the extant corporate governance and corporate social responsibility literatures does not provide a clear perspective with contradictory outcomes about board roles in influencing CSR practices, the paper's originality is its contribution by evaluating the directors' perception of developing the direct relationship between the board roles and adopting of CSR practices. Furthermore, the use of the Stakeholder theory provides additional insights into identifying the most Board Role's factors enhancing stakeholder expectation of CSR practices.