Board Gender Diversity and CSR Spending: Does Critical Mass Play Any Role in Post-Companies Act 2013? Case Of Indian-Listed Firms

The study examined whether women board directors in Indian organizations, as mandated by the Companies Act 2013, impacts their CSR spending and is relevant in the Indian business environment. 361 firms listed in NIFTY 500 were selected to analyze the increase in gender diversity affecting the trend of CSR spending from 2014-19. A dummy variable for critical mass was also considered along with control variables of firm and board size and CEO duality to examine the change in CSR spending with their inclusion in the relationship. Findings showed that only 8% of the 361 large-size organizations have three or more women directors on boards with an average of 10 members and a significant change in CSR spending trend with the inclusion of women directors, wherein the control variables also played a determining role. A strong board composition through independent directors and a critical mass of women directors is suggested for effective CSR spending.