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Corporate governance meets corporate social responsibility: evidence from Latin America

Alan Bandeira Pinheiro (Universidade Federal do Paraná, Curitiba, Brazil) (NEOMA Business School, Mont-Saint-Aignan, France)
Joina Ijuniclair Arruda Silva dos Santos (Universidade Federal do Paraná, Curitiba, Brazil)
Danielle Mantovani Lucena da Silva (Universidade Federal do Paraná, Curitiba, Brazil)
Andréa Paula Segatto (Universidade Federal do Paraná, Curitiba, Brazil)
Jose Carlos Korelo (Universidade Federal do Paraná, Curitiba, Brazil)

Academia Revista Latinoamericana de Administración

ISSN: 1012-8255

Article publication date: 18 October 2023

Issue publication date: 29 November 2023

573

Abstract

Purpose

This study aims to examine the effect of corporate governance mechanisms on social responsibility in Latin America.

Design/methodology/approach

The hypotheses were tested using a sample of 371 companies based in eight Latin American countries, resulting in 4,823 observations.

Findings

The results show that more independent boards, with greater female representation and the presence of a sustainability committee lead companies to behave more ethically. The findings indicate that corporate governance mechanisms play an important role for companies to engage in social responsibility actions.

Practical implications

Governments can use these findings to draft regulations that encourage Latin American companies to disclose more non-financial information and to support a more diverse board composition. The evidence shows that the quality of national governance plays a key role in times of crisis by encouraging more responsible behavior by companies.

Originality/value

This study broadens the scope of application of agency theory and the resource-based view by demonstrating that the board of directors is a unique composition and that organizations must understand how to balance external and internal members on their boards in order to achieve higher social and environmental performance.

Propósito

Este estudio tiene como objetivo examinar el efecto de los mecanismos de gobierno corporativo en la responsabilidad social en América Latina.

Diseño/metodología/enfoque

Las hipótesis se probaron utilizando una muestra de 371 empresas con sede en 8 países de América Latina, lo que resultó en 4.823 observaciones.

Hallazgos

Los resultados muestran que directorios más independientes, con mayor representación femenina y la presencia de un comité de sustentabilidad llevan a las empresas a comportarse de manera más ética. Los hallazgos indican que los mecanismos de gobierno corporativo juegan un papel importante para que las empresas realicen acciones de responsabilidad social.

Originalidad

Este estudio amplía el alcance de la aplicación de la teoría de la agencia y la visión basada en los recursos al demostrar que la junta directiva es una composición única y que las organizaciones deben entender cómo equilibrar los miembros externos e internos en sus juntas para lograr un mayor impacto social. y desempeño ambiental.

Implicaciones prácticas

Los gobiernos pueden usar estos hallazgos para redactar regulaciones que alienten a las empresas latinoamericanas a divulgar más información no financiera y apoyar una composición de directorio más diversa. Nuestra evidencia muestra que la calidad de la gobernanza nacional juega un papel clave en tiempos de crisis al fomentar un comportamiento más responsable por parte de las empresas.

Keywords

Acknowledgements

The authors would like to express their sincere thanks to the editor and the anonymous reviewers for their constructive comments on earlier drafts of this paper. They are also grateful for the financial support provided by CAPES (Coordenação de Aperfeiçoamento de Pessoal de Nível Superior - Brasil).

Citation

Pinheiro, A.B., dos Santos, J.I.A.S., da Silva, D.M.L., Segatto, A.P. and Korelo, J.C. (2023), "Corporate governance meets corporate social responsibility: evidence from Latin America", Academia Revista Latinoamericana de Administración, Vol. 36 No. 4, pp. 516-534. https://doi.org/10.1108/ARLA-05-2023-0072

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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