Beyond Tokenism: The Role of Critical Mass of Female Directors, Female Chair Leadership, and Stakeholder Orientation on CSR Reporting Tone

ABSTRACT In this paper, we examine the association between the critical mass of female directors, female chair leadership, and the linguistic tone of CSR narratives, and whether country‐level stakeholder orientation moderates these relationships. Using a dictionary‐based textual analysis of CSR reports and fixed‐effects regressions, we study a sample of 3370 firm‐year observations from the UK, France, and Germany between 2012 and 2018. To address endogeneity and potential self‐selection bias, we employ robustness checks including alternative measures, the Heckman two‐stage model, and the two‐stage least squares regressions. We find that firms with greater female board representation tend to adopt a less optimistic net tone in their CSR reporting. This association is stronger when a woman chairs the board, and this effect is more pronounced in countries with stronger stakeholder orientation. These findings are consistent with the lens of tokenism theory, critical mass theory, and social exchange theory, which suggest that female directors may potentially adopt cautious communication styles in response to heightened scrutiny. Our study contributes to the debate on board gender diversity and CSR disclosure by highlighting the relationships among board composition, leadership, and institutional context. Our results offer valuable insights for policymakers regarding voluntary CSR reporting and governance frameworks.