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

Osemeke Louis () and Nobert Osemeke ()
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Osemeke Louis: London Business College
Nobert Osemeke: Liverpool John Moores University

International Journal of Disclosure and Governance, 2017, vol. 14, issue 2, 152-172

Abstract: 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.

Keywords: corporate governance; ethnic minority; corporate social responsibility; Public Liability Companies (search for similar items in EconPapers)
Date: 2017
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