Does a foreign board improve corporate social responsibility?

Doddy Setiawan, Rayenda Khresna Brahmana, Andi Asrihapsari, Siti Maisaroh

Research output: Contribution to journalArticlepeer-review

17 Citations (Scopus)
29 Downloads (Pure)


This study examines the effect of foreign boards on corporate social responsibility, exploring the issues of two-tier board systems (boards of directors and boards of commissioners). Using data for manufacturing firms listed on the Indonesia Stock Exchange over the sample period of 2017–2019, the results suggest that a foreign board engages more in corporate social responsibility activities. Our key finding remains robust with respect to all foreign board measures (foreign ownership, foreign board members, foreign directors, foreign commissioners, foreign CEO, and foreign chairperson) and to alternative estimation methods, and pass a series of endogeneity checks. We established the causal effect from foreign boards to CSR, supporting institutional theory and contesting agency theory.

Original languageEnglish
Article number11473
Number of pages17
JournalSustainability (Switzerland)
Issue number20
Publication statusPublished - 17 Oct 2021
Externally publishedYes

Bibliographical note

Copyright: © 2021 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https:// 4.0/).


The authors acknowledge financial support from Directorate General of Higher Education, Ministry of Education, Culture, Research and Technology, Republic of Indonesia, under grant no. 221.1/UN27.22/HK.07.00/2021.

Publisher Copyright:
© 2021 by the authors. Licensee MDPI, Basel, Switzerland.


  • Corporate social responsibility
  • Foreign board
  • Foreign CEO
  • Foreign chairperson
  • Foreign commissioners
  • Foreign directors

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Renewable Energy, Sustainability and the Environment
  • Environmental Science (miscellaneous)
  • Energy Engineering and Power Technology
  • Management, Monitoring, Policy and Law


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