CB BureauIn an interesting research, a team from Harvard Business
School found that companies with gender-inclusive leadership teams contributed,
on average, more charitable funds. The team had examined how corporate leadership
and organizational structure influence corporate social responsibility (CSR) by utilizing the most visible form
in corporate philanthropy. They focused specifically
on how women leaders might impact CSR.
The research paper reads that ‘it is not only a matter of
companies with more women leaders being larger and having more money to donate or
of companies with more women being clustered in industries with higher levels
of charitable giving. After controlling for key factors that might influence
the amount of donations, including financial performance, company size, and
industry, the presence of women leaders in Fortune 500 companies still has a
significant, positive effect: more
women leaders is correlated with higher levels of philanthropy.’
Going beyond correlation”proving that gender-inclusive leadership
actually ’causes’ companies to be more socially responsible”can be difficult
given all the factors at play. Additional
evidence does, however, point to gender-inclusive leadership positively
impacting CSR.
To quote from the Harvard research, other studies demonstrate that gender-inclusive leadership
is linked to increased philanthropy as well as increases in other CSR areas,
such as environmental CSR. While it is plausible that companies committed to CSR could
attract more diverse leaders, it is likely the connection works in reverse.
Research examining the impact of gender-inclusive leadership, when taking time
into account, suggests gender-diverse leaders are employed before increases in
CSR are observed.
Having gender-inclusive leadership
can influence the level or quantity of philanthropic investment corporations
make in CSR. However, the research also speculates that
by keeping gender issues prominent, gender-inclusive leadership likely also
affects the quality of CSR initiatives. When leaders spotlight
gender issues in their CSR strategies, they often position their organization
for sustained growth, and the payoff extends beyond the company to society. Focusing
on the roles women play in the marketplace is one way companies can create
success through CSR initiatives.
The research goes on to say that that people define fairness
differently, and that this may lead them to approach CSR in distinct ways. Operating
with gender-inclusive leadership can provide diverse perspectives on fairness,
which may broaden the company’s understanding of CSR and generate a higher level
of philanthropic activities.