Very limited research has been devoted to answering the question of whether the religious beliefs of the upper echelons of management and gender diversity have any impacts on the communication of corporate social responsibility (CSR) information in the marketplace. This study aims to fill the void in the literature by posing the two research questions: first, does the CEO religion affect a firm’s CSR behaviour?; second, do the women on the boards influence CSR reporting?
The authors performed the tests on a sample of 133 firms listed in Bursa Malaysia that have analysts following using a self-constructed CSR disclosure index based on information in annual reports in 2009. A total of 23 per cent of the sample firms have Muslim CEOs, and women made up only 8 per cent of board members.
The authors find that Muslim CEOs are significantly associated with greater disclosure of CSR information. The authors also find a moderate relationship between board gender diversity and CSR disclosure. This is probably because of insufficient number of women on boards.
The disclosure index is based on unsubstantiated CSR information provided in annual reports, and the authors examine only two aspects of board diversity, namely, Muslim religiosity and gender mix.
This study advances the research on upper echelons theory by illuminating the importance of religious value in influencing the CSR behaviour of corporate leaders. This has been largely overlooked because of lack of data.
The authors would like to thank the editors of the journal and the anonymous reviewers for their helpful and constructive comments that greatly contributed to improving the final version of the paper. The authors also like to thank the participants of American Accounting Association Annual Meeting 2014 in Atlanta, for their valuable feedbacks. The authors also thank the participants at the 16th Financial Reporting and Business Communication Annual Conference, Bristol, UK, for their valuable comments, especially Amama Shaukat, Glen Lehman, Jill Solomon and Sue Hrasky.
Alazzani, A., Wan-Hussin, W. and Jones, M. (2019), "Muslim CEO, women on boards and corporate responsibility reporting: some evidence from Malaysia", Journal of Islamic Accounting and Business Research, Vol. 10 No. 2, pp. 274-296. https://doi.org/10.1108/JIABR-01-2017-0002Download as .RIS
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