CRITICAL INFLUENCE: EXAMINING HOW FEMALE BOARD REPRESENTATION SHAPES CORPORATE SOCIAL RESPONSIBILITY THROUGH INTERNAL AND EXTERNAL LEGITIMACY

Author

Mari Sifo, Kennesaw State UniversityFollow

Semester of Graduation

Winter 2025

Degree Type

Dissertation

Degree Name

DOCTOR OF PHILOSOPHY IN BUSINESS ADMINISTRATION

Department

Management

Committee Chair/First Advisor

Canan Mutlu, Associate Professor, Management

Second Advisor

Patricio Duran, Associate Professor, Management

Third Advisor

Rajaram Veliyath, Professor of Management, Management

Abstract

Our study investigates the relationship between board gender diversity and corporate social responsibility (CSR) outcomes by examining the dual sources of legitimacy that empower women directors to influence corporate governance. Drawing on critical mass theory and institutional legitimacy frameworks, this study posits that female directors derive legitimacy from both internal and external sources, which differentially impact CSR performance. Internal legitimacy emerges from positional power, specifically through formal leadership roles such as board chair or committee chairs, providing women directors with institutional authority to drive CSR initiatives. External legitimacy manifests when firms operate within industries characterized by higher female board representation among industry peers, creating normative pressure that facilitates enhanced CSR outcomes. Using a comprehensive dataset of US based public companies, this study employs quantitative analysis to examine the direct and interactive effects of board gender diversity, critical influence, and industry female board prevalence on CSR performance metrics. Findings reveal that board gender diversity, critical influence and industry board gender diversity significantly predict stronger CSR performance. However, the study does not find significant interaction effects between critical influence positions and industry gender prevalence, suggesting these legitimacy sources operate independently rather than synergistically. These findings advance theoretical understanding of gender diversity's impact on corporate governance by identifying specific pathways through which female directors influence organizational outcomes.