# Corporate Social Responsibility and Corporate Governance: A cognitive approach

**Authors:** Rania Béji, Ouidad Yousfi, Abdelwahed Omri  
**arXiv:** [2102.09218](https://arxiv.org/abs/2102.09218)  
**Date:** 2021-02-18  
**Summary page:** https://www.summarizepaper.com/en/paper/2102.09218v1/

## Key points

- The authors critically review the existing literature on the relationship between corporate social responsibility (CSR) and corporate governance features.
- They develop a theoretical model that explicitly links board diversity, CSR committees' attributes, CSR, and financial performance.
- Board diversity in terms of gender, ethnicity, age, education level, professional background, and experience can enhance cognitive diversity within boards.
- Studying the attributes of CSR committees such as their size, composition (e.g., internal vs. external members), mandate (e.g., advisory vs. decision-making), resources (e.g., budget), reporting lines (e.g., to CEO or board), and accountability mechanisms (e.g., monitoring) is crucial for understanding how these committees influence firms' CSR practices.
- A deeper understanding of the relationship between CSR and corporate governance requires considering not only structural features but also cognitive aspects such as decision-making processes, values, beliefs, and attitudes.
- This chapter provides practical implications for policymakers interested in promoting responsible business practices by highlighting ways to enhance board diversity and optimize the functioning of CSR committees within organizations.

## Summary

In their chapter titled "Corporate Social Responsibility and Corporate Governance: A cognitive approach," Rania Béji, Ouidad Yousfi, and Abdelwahed Omri critically review the existing literature on the relationship between corporate social responsibility (CSR) and corporate governance features. The authors draw on management and corporate governance theories to develop a theoretical model that explicitly links board diversity, CSR committees' attributes, CSR, and financial performance. They argue that focusing on the cognitive and demographic characteristics of board members can provide more insights into the link between corporate governance and CSR. Additionally, they highlight how the functioning and composition of CSR committees can be valuable in better understanding this relationship. The authors emphasize that a deeper understanding of the relationship between CSR and corporate governance requires considering not only structural features but also cognitive aspects such as decision-making processes, values, beliefs, and attitudes. They suggest that board diversity in terms of gender, ethnicity, age, education level, professional background, and experience can enhance cognitive diversity within boards. This diversity can lead to more effective decision-making processes regarding CSR issues. Furthermore, the authors argue that studying the attributes of CSR committees such as their size, composition (e.g., internal vs. external members), mandate (e.g., advisory vs. decision-making), resources (e.g., budget), reporting lines (e.g., to CEO or board), and accountability mechanisms (e.g., monitoring) is crucial for understanding how these committees influence firms' CSR practices. Overall, this chapter provides a comprehensive overview of how cognitive approaches to corporate governance can shed light on the complex relationship between CSR practices and firm performance. It offers practical implications for policymakers interested in promoting responsible business practices by highlighting ways to enhance board diversity and optimize the functioning of CSR committees within organizations.