Board Members, Corporate Social Responsiveness And Profitab

Although it has been suggested that members of corporate boards of directors can play an active role in improving corporate social responsiveness (CSR), little is known about the orientation of directors toward CSR. Without this knowledge, it is difficult to judge what actions might be taken at the board level to encourage CSR. The relationship between CSR and profitability is examined in a sample of corporate directors. The findings of the study indicate that directors can serve as agents for CSR. This suggestion is based on 2 important results: 1. Board members exhibit a more moderate contrast between their economic concerns and their ethical concerns. 2. The level of board member orientation to CSR orientation is unrelated to the level of corporate profits. Board members can encourage managers to improve their decisions by increasing emphasis on the ethical, legal, and discretionary dimension.