Do female directors promote corporate social responsibility during the post-mandate period? Evidence from India and China

Purpose This study aims to examine whether female directors promote corporate social responsibility (CSR) in the post-mandate period and how this effect varies between family and non-family firms in India and China. Design/methodology/approach The authors analyse 9,453 firm-year observations from 1,532 Indian firms and 2,421 firm-year observations from 450 Chinese firms over 2010–2019 using fixed-effects panel regressions, difference-in-differences and instrumental variable approaches. Findings The authors find that increased board gender diversity relates with higher CSR spending, with stronger benefits following the implementation of board gender quotas in India. The increase of CSR in the post-mandate period is in line with reputational and monitoring incentives for female directors facing increased regulatory and stakeholder scrutiny. The positive relationship between female directors and CSR is stronger in family businesses, implying that family-related socioemotional wealth considerations strengthen stakeholder-oriented CSR. The relationship between gender diversity and CSR differs depending on the type of CSR activities. The findings indicate that women directors in India are mainly related with community CSR, whereas in China they are more strongly associated with environmental CSR, reflecting differences in stakeholder engagement and regulation emphasis. Overall, findings suggest that gender mandates can serve as an effective governance instrument for reshaping both the extent and composition of CSR. Originality/value The authors show that reputational incentives significantly impact the women director’s decision to encourage CSR activities. We also find that to maintain their reputations and comply with the regulations, women directors of highly profitable firms promote CSR activities in India and China.