The Effects of Board Characteristics and Institutional Ownership on Corporate Social Responsibility

This study examines the effects of board characteristics and institutional ownership on corporate social responsibility (CSR) among publicly listed firms. Despite growing awareness of CSR's strategic importance, the influence of internal governance mechanisms on CSR practices remains underexplored, particularly in emerging economies. The purpose of this research is to investigate how specific board attributes—such as board size, independence, gender diversity, and meeting frequency—alongside the level of institutional ownership, shape firms’ CSR engagement. The study adopts a quantitative research design using panel data derived from annual reports of consumer goods firms listed on the Nigerian Exchange Group over ten years (2014–2023). Multiple regression analysis, based on the random effects model, is employed to test the hypothesized relationships. The findings reveal that board independence and gender diversity are positively and significantly associated with CSR performance, while board size and meeting frequency show no significant influence. Furthermore, institutional ownership exerts a positive effect on CSR, suggesting that institutional investors play a crucial monitoring role in enhancing socially responsible behaviour. The research is limited by its focus on a single country and reliance on secondary data, which may not capture the full scope of CSR activities. However, the study provides practical implications for policymakers, investors, and corporate boards by highlighting the governance structures that promote CSR. It also encourages firms to enhance board diversity and attract long-term institutional investors to improve social performance. The originality of this study lies in its integrated approach to examining both board characteristics and institutional ownership within the same empirical model, offering new insights into governance-driven CSR strategies in developing markets.