Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Research Article: 2022 Vol: 26 Issue: 5

Gender Diversity and Corporate Social Responsibility Nexus: Apanel Analysis of Manufacturing Firms in Nigeria

Saidu Musa, Kwara State University

Damilola Felix Eluyela, Landmark University

Ademola Onabote, Landmark University

John Nonso Okoye, NnamdiAzikiwe University

Esther Edem Sundaya, Landmark University

Adeolu Olayide Olajoju, Landmark University

Citation Information: Musa, S., Eluyela, D.F., Onabote, A., Okoye, J.N., Sundaya, E.E. & Olajoju, A.O. (2022). Gender diversity and corporate social responsibility nexus: apanel analysis of manufacturing firms in Nigeria. Academy of Accounting and Financial Studies Journal, 26(5), 1-09.


Gender diversity is a focal issue in modern management of public and non-public enterprises. This study examines the relationship between gender diversity and corporate social responsibility to ascertain whether companies with a higher proportion of women are more socially conscious in their corporate social responsibility activities. Applying panel data method for the period between 2010 and 2019 as well as other econometric analysis such as descriptive analysis, correlation analysis and Hausman test (fixed and random effect model), this study discovered that there is a significant and positive relationship between women on the management board and corporate social responsibility (CSR). This implies that increased presence of women on the board of directors of companies can add economic value to firms in Nigeria.


Board Size, Corporate Governance, Corporate Social Responsibility (CSR), Gender Diversity, Firm Size.

JEL Classification Code

G34, M14, M41.


Corporate social responsibility (CSR) refers to how a company conducts business in a way that is beneficial to the society at large. It emphasizes how a company acts responsibly to shareholders, staff members, consumers and suppliers. CSR is designed to understand and control the connection between the company, its stakeholders, environment and communities (Kahreh et al., 2014). CSR techniques on the well-being of inner stakeholders (e.g., staff members, supervisors) can increase employees' effectiveness and dedication, which in effect may enhance the economic output of the organization (Chung & Yoon, 2018).

Gender literature agrees that gender differences in moral values are considerable at the general level. While there is insufficient evidence to ascertain all gender-related disparities, empirical evidence of gender impact on ethical issues continues to unveil contradictory results. More often, however, research findings show that females are more predisposed to ethics than their male counterpart (Kahreh et al., 2014). It is also noted that males show less interest in ethical decision making. The connection between gender diversity and company values is extensively studied, and previous studies have demonstrated that females are much more moral than males (Ozordi et al., 2019). The resurgence of focus on women in management roles (Low et al., 2015), can also be attributed to the growing number of women in management positions. For example, based on a 2012 household data, women make up nearly 39 percent of all managers Bureau of Labor Statistics. The number of Fortune 500 companies with female CEOs has also reached a record high of 21 (Perryman et al., 2016). In the face of corporate failures around the world, some countries are promoting gender diversity in corporate management as a step to mitigate the rate of company failures.

As gender diversity has taken a focal position in modern management of both public and non-public enterprises, this study examines the relationship between gender diversity and corporate social responsibility in listed manufacturing firms in Nigeria. This study aims to ascertain whether companies with a higher proportion of women are more socially conscious in their Corporate Social Responsibility activities. This study contributes to the body of knowledge by focusing on the roles female executives in listed manufacturing firms' play in corporate social responsibility in Nigeria. The argument for greater representation of women in the board is based on three criteria: enhancing efficiency by gaining access to a broader talent pool, growing customer sensitivity and strengthening corporate governance (Low et al., 2015). The remaining part of this paper is structured as follows. Section two explores the background and theory on gender diversity and CSR; section three includes materials, methods and samples used for the study; section four consists of the results, discussion and implication of findings; while the conclusion, recommendations and suggestions for further studies are presented in section five.


Corporate social responsibility (CSR) refers to a commercialism pattern that helps firms be socially accountable to itself, its stakeholders, and the public. Stakeholder groups consist of the internal stakeholders (e.g., employees, managers) and external stakeholders (e.g., environment, community, unit association. Scholars argue that the stakeholders set standards and assess organizational behavior (Eluyela et al., 2018; Uwuigbe et al., 2018). Organized executives and managers have to speak about the demands and expectations of the various stakeholder groups. This can amount to the continuance of business (Theodoulidis et al., 2017).

CSR can be seen in two forms; internal CSR and external CSR directed at the internal and external stakeholders, respectively (Yoon & Chung, 2018). Internal CSR refers to policies and practices directly related to the well-being of the employees and the firm's management team (Johnson & Scholes, 2002; Verdeyen et al., 2004). Internal CSR may include health and safety of employees, status opportunities, heterogeneity and structured governance. On the other hand, external CSR is linked to environmental and cultural practices that improve credibility among its external stakeholders (Yoon & Chung, 2018). External CSR may include providing charities with funding or resources, vocation evolution projects, environmental and wildlife taxation projects, and consumer-related matters.

Alonso-Almeida et al. (2015) found women placing a higher priority on CSR issues than men. Similarly, Marz et al. (2003) demonstrated that female respondents expressed a greater social responsibility than male respondents. On average, gender differences make women marginally more attentive than men to CSR-related topics and are especially emphasized regarding the environmental dimension. This observation is in line with feminist environmentalism and eco-feminist theories which posit that women would be more attentive to balancing economic goals and conservation needs (Calabrese et al., 2016).


This study is anchored on the stakeholders' theory. The relationship between stakeholder’s theory and CSR is hinged on the importance of involving social interests in firm operations. Stakeholders’ theory suggests that business is fundamentally about building relationships and generating value for all stakeholders involved. While stakeholders' composition can vary depending on the organization's industry and business model, the key stakeholders usually include employees, clients, societies, suppliers, and financiers (owners, investors). These stakeholders are equally important to the firm, and any trade-off between the stakeholders should be avoided (Eluyela et al., 2019b). The executives, instead, have to find ways to guide those interests in the same direction. As far as CSR is concerned, it is a framework term for broad-based enterprise-oriented activities that include charity, volunteer work, environmental initiatives, and ethical labor practices (Nikolova & Arsi?, 2017). In contrast to stakeholder theory, CSR does not attempt to explain what business is all about, nor does it attempt to stipulate the overall set of duties. Instead, CSR focuses on one source of corporate obligation; the responsibility of ensuring the business can deliver to local communities and society at large.

Review of Prior Studies

A survey of literature on gender diversity and corporate social responsibility provides varying results ranging from a positive result to a negative result and mixed results, respectively. Since the 1960s, the idea of Corporate Social Responsibility (CSR) showed that companies that bore a responsibility to society and a wider set of stakeholders beyond their shareholders gained goodwill. In both academic and practitioner communities around the world, emphasis on CSR has since increased (Ezhilarasi & Kabra, 2017). While there have been concerns and debates on whether companies can expand their responsibility beyond their shareholders, the vast majority of companies have been proactively dedicated to solving societal problems. Corporations have produced dedicated organizational devices with an assortment of corporate engagement choices in local communities and mainstream society to efficiently deal with their community responsibilities (Riyadh et al., 2019). Specialized organizations operating at the global and national level, which guide and usually implement targeted short term projects or perhaps longer-term sustained community-level programs, are experiencing equal growth.

Recently, CSR's characterization continues to grow in recognition among academics from a broad range of disciplines (Galbreath, 2016). Stakeholders such as government agencies, NGOs, staff members, and the general public seek information about business governance practices, environmental problems, civic engagement and social programs (Hopkins, 2006). Providing this information is a crucial element of reducing the risks related to CSR related problems. Companies need to implement CSR as part of their mission; they do need to communicate CSR to stakeholders (Galbreath, 2016; Ismail 2009). The addition of female’s board members, for example, often reflects the likelihood of the promotion of female employees within the organization. Women are a tremendous market force, and it is essential to understand the female perspective to generate goods and services that meet consumer needs and wants (Owen &Temesvary, 2018).

Existing empirical studies show a positive relationship between female board representation and firm CSR rating (Kahreh et al., 2014; Harjoto et al., 2018). More specifically, a recent meta-analysis review indicates that female representation is positively linked to higher CSR success in the boardroom (Harjoto & Rossi, 2018). Ye et al. (2019) are more ethically predisposed to female business students than their male counterparts. It is also found that males display less flexibility in ethical decision making, while females exhibit different ethical criteria. Some studies on gender in CSR indicate that men and women differ in their perception of social responsibilities (Panwar et al., 2016). Harjoto & Rossi (2018) found a higher level of CSR orientation in female students than male students, in that other, female students are more likely to rate higher on ethics and social responsibility scales than males.

Research Methods

This study adopts the panel data methodological technique (Adegboyegun et al., 2020; Eluyela et al., 2020a) due to the nature of the data. The panel data method consists of both time series and cross-sectional data (Adebayo et al., 2020; Eluyela et al., 2020). The population of this study consists of thirty-seven manufacturing companies listed on the Nigerian Stock Exchange. For this study, industrial and consumer goods sectors are classified as manufacturing firms (Ozordi et al., 2019; Oladipo et al., 2019). The study data is based on thirty manufacturing firms (fifteen firms, each for industrial and consumer goods). The sample size is motivated by data availability. The study adopts secondary data for the 2010–2019period.

The data for the study is sourced from annual reports of sampled firms (See Otekunrin et al., 2018). For the method of data analysis, the following techniques are used. Firstly, descriptive statistics were presented (Akintimehin et al., 2019; Ezenwoke et al., 2020). This consists of mean, averages and standard deviation of all variables (Inegbedion et al., 2020). Secondly, the correlation matrix is used to check the absence of multicollinearity among variables. For there to be an absence of multicollinearity, all variables under the correlation matrix must be less than 0.8 (Okere et al., 2018; Eluyela et al., 2019). Thereafter, the Hausman test is presented. This test is used to confirm whether the model fits a random or fixed-effect model. Lastly, a panel data regression technique is presented to achieve the study objective (Umukoro et al., 2020).

Model Specification

For this study, the model presented below is adapted from Nwanji et al., (2019). The Eq. (1) is computed in its implicit form as follows:

Where CSR is expressed as a function of gender diversity which gives rise to Eq.2

The model is represented directly in Eq.3 after adding various estimation signs with the presence of a control variable as

Where; FBM is the female board member (i.e. the existence of female members on the board). FSIZE is the firm size. The control variable for this study is board size. i denotes firms specific and t is the deterministic time trend and eis the error term.

Measurement of Variabless

Table 1 shows the measurement of the variables used in this study. The independent variables are female board member (FBM) and firm size (FSIZE) while the dependent variable is corporate social responsibility (CSR). The control variable is the board size (BSIZE).

Table 1
Variables And Measurements
Variable Name Variable Acronym Variable Type Measurement
Corporate social responsibility CSR Dependent Total money spent on corporate social responsibility for a specific year
Female board member FBM Independent The total number of female on the board
Firm size FSIZE Independent Natural total-asset logarithm
Board size BSIZE Control The total number of directors on the board

Results and Discussion

This section shows the result of the empirical analysis. This analysis includes the descriptive statistics, the correlation analysis and the Hausman test (fixed or random effect model) and panel data regression technique.

The descriptive analysis is used to test for normality for variance and test the relationship between gender diversity and CSR as presented in Table 2 (Ademola et al., 2020). The descriptive statistics show the measure of central tendency (mean, median) the measure of dispersion (standard deviation), the measure of normality, skewness (which measures the degree of symmetry), kurtosis (which measures the degree of sharpness) and jarque-bera (which measures the difference of the skewness and kurtosis of the series with those from the normal distribution).

Table 2
Descriptive Statistics
Mean 7.149497 0.267151 10.06145 7.986034
Median 6.840000 0.200000 10.00000 7.950000
Maximum 9.900000 8.000000 19.00000 10.47000
Minimum 5.200000 0.030000 6.000000 2.450000
Std. Dev. 1.150017 0.707968 2.879923 1.106666
Skewness 0.615822 9.611811 0.653046 -0.363786
Kurtosis 2.471778 97.27412 3.152303 5.548939
Jarque-Bera 13.39490 69042.97 12.89599 52.40562
Sum 1279.760 47.82000 1801.000 1429.500
Sum Sq. Dev. 235.4119 89.21705 1476.324 217.9985
Observations 179 179 179 179


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Received: 19-Nov-2021, Manuscript No. AAFSJ-21-9858; Editor assigned: 22-Nov-2021, PreQC No. AAFSJ-21-9858(PQ); Reviewed: 06-Dec-2021, QC No. AAFSJ-21-9858; Revised: 15-Jun-2022, Manuscript No. AAFSJ-21-9858(R); Published: 22-Jun-2022

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