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The role of ethnic directors in corporate social responsibility: Does culture matter? The cultural trait theory perspectives

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Abstract

This paper investigates the effect of cultural differences between ethnic directors on Corporate Social Responsibility (CSR) of Public Liability Companies (PLCs) in Nigeria. Using the cultural trait theory, the study focuses on how the ethnic directors are influenced when making decisions concerning CSR. Adopting multiple regression analysis of data, the study investigates the three major ethnic groups (Yoruba, Igbo and Hausa) and finds cultural differences between the ethnic directors affect the adoption of CSR. Empirical results indicate that ethnic directors (Yoruba, Igbo and Hausa) were positively and significantly related to CSR. The paper contributes to the corporate governance and CSR debate concerning how ethnic directors’ decisions impact on CSR activities, particularly on the directors who are individualistic and collectivists towards CSR.

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  1. Department of Accounting and Finance, London Business College, London, UK

    Osemeke Louis

  2. Liverpool John Moores University, Redmonds Building, Brownlow Hill, Liverpool, L3 5UG, UK

    Nobert Osemeke

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Louis, O., Osemeke, N. The role of ethnic directors in corporate social responsibility: Does culture matter? The cultural trait theory perspectives. Int J Discl Gov 14, 152–172 (2017). https://doi.org/10.1057/s41310-017-0018-7

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