Abstract:
paper aims to examine the impact of board diversity on corporate social responsibility
(CSR) in Sri Lanka. This study uses quantitative techniques to assess the board
diversity and CSR of Sri Lankan firms. A 100-firms sample, randomly drawn from
the Colombo Stock Exchange (CSE)-listed firms. Secondary data for the financial
year 2017/18 are obtained from the CSE databases and are used to calculate the board
diversity and CSR for the sampled firms. It is found that the diversity of board
resources positively affects CSR. Diversity of board may encourage companies to
invest in CSR, which will enhance the image of their companies. The study also
proves a positive effect of women directors on CSR disclosure, which indicates that
women on a board may improve CSR; board changes may provide necessary signals
to investors indicating the potential for an improved firm image.
