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Mi-Hee Lim
Department of International Business and Trade, Myongji University, 34 Geobukgol-ro, Seodaemun-gu, Seoul 03674, Korea

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Journal article
Published: 03 June 2019 in Sustainability
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Addressing the fact that there are few studies exploring the relationship between board characteristics and corporate social responsibility (CSR) in non-Western contexts, this study examines the relationship in South Korean corporate contexts. We concentrate on foreign directors as a board attribute, which is reported as a remarkable change in Korean corporate boards, and propose that foreign directors have different impacts on CSR investment depending on their nationality (Anglo-Americans vs. non-Anglo-Americans) and director types (insiders vs. outsiders). In detail, the presence of directors from Anglo-American countries (e.g., the United States, the United Kingdom) decreases firms’ CSR involvement, whereas the presence of directors from non-Anglo-American countries (e.g., France, Germany) increases firms’ CSR involvement. Moreover, the effects of Anglo-Americans on CSR are strengthened when they are inside (rather than outside) directors. Empirical analyses using a sample of 1828 Korean firms from 2002 to 2015 provide evidence to support the predictions. This study theoretically contributes to CSR and corporate governance literature in that it sheds light on the CSR in non-Western companies and reveals varied effects of foreign directors contingent upon their individual attributes. It also has practical implications for policymakers and corporate managers by providing insights of the changes generated by foreign members in a boardroom.

ACS Style

Yeong Seon Kang; Eunji Huh; Mi-Hee Lim. Effects of Foreign Directors’ Nationalities and Director Types on Corporate Philanthropic Behavior: Evidence from Korean Firms. Sustainability 2019, 11, 3132 .

AMA Style

Yeong Seon Kang, Eunji Huh, Mi-Hee Lim. Effects of Foreign Directors’ Nationalities and Director Types on Corporate Philanthropic Behavior: Evidence from Korean Firms. Sustainability. 2019; 11 (11):3132.

Chicago/Turabian Style

Yeong Seon Kang; Eunji Huh; Mi-Hee Lim. 2019. "Effects of Foreign Directors’ Nationalities and Director Types on Corporate Philanthropic Behavior: Evidence from Korean Firms." Sustainability 11, no. 11: 3132.