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Political directors and corporate social responsibility: Are political ideology and regional identity relevant?

Author

Listed:
  • Pablo Andres

    (Autonoma University of Madrid)

  • Inigo Garcia-Rodriguez

    (University of Burgos)

  • M. Elena Romero-Merino

    (University of Burgos)

  • Marcos Santamaria-Mariscal

    (University of Burgos)

Abstract

This study analyzes the influence of directors with political connections on corporate social responsibility (CSR). Using a sample of Spanish savings banks (cajas) during the period 2004–2013, we analyze the influence of political directors on the CSR of these entities, focusing on their ideology and regional identity. Our results indicate that the higher the proportion of directors with political ties on the board, the greater the allocation of resources to CSR activities. In addition to this positive effect of board politicization, we find that political directors’ liberal ideology positively affects CSR, both directly and in moderating the relationship between political directors and CSR. Our results also validate that political directors’ regional identity boosts the positive effect they have on CSR. Finally, we encounter various differences depending on the nature of the projects funded through CSR. Therefore, our study demonstrates the importance of delving into the characteristics of political directors to elucidate their effects on corporate policies.

Suggested Citation

  • Pablo Andres & Inigo Garcia-Rodriguez & M. Elena Romero-Merino & Marcos Santamaria-Mariscal, 2023. "Political directors and corporate social responsibility: Are political ideology and regional identity relevant?," Review of Managerial Science, Springer, vol. 17(1), pages 339-373, January.
    • Handle: RePEc:spr:rvmgts:v:17:y:2023:i:1:d:10.1007_s11846-022-00526-8
    DOI: 10.1007/s11846-022-00526-8
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    More about this item

    Keywords

    Political directors; Ideology; Liberal; Regional identity; Board of directors; Corporate social responsibility (CSR);
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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