The Effect of Corporate Social Responsibility on Gender Diversity in the Workplace: Econometric Evidence from Japan
| Author | Takao Kato,Naomi Kodama |
| Published date | 01 March 2018 |
| Date | 01 March 2018 |
| DOI | http://doi.org/10.1111/bjir.12238 |
British Journal of Industrial Relations doi: 10.1111/bjir.12238
56:1 March 2018 0007–1080 pp. 99–127
The Effect of Corporate Social
Responsibility on Gender Diversity
in the Workplace: Econometric Evidence
from Japan
Takao Kato and Naomi Kodama
Abstract
Using panel data on corporate social responsibility (CSR) matched with
corporate proxy statement data for a large and representative sample of 1,492
publicly traded firms in Japan over 2006–2014, we provide fixed eect estimates
on the positive and significant eects on gender diversity of CSR. Such eects
are, however, felt onl y after t wo to thre e years. Th e CSR ee cts are l arger
and more significant for firms that adhere more closely to the participatory
Japanese management system. Our findings are robust to the inclusion of
controls capturing the mediating eects of various work–life balance practices,
pointing to the direct impact of CSR on gender diversity.
1. Introduction
This article provides the first rigorous quantitative evidence on the eect of
corporate social responsibility (CSR) on gender diversity in the workplace.
In so doing, we fill an important gap in the vast and growing literature
on CSR (for recent literature reviews, see, for instance, Aguinis and Glavas
2012; Garriga and Mel´
e 2004; Orlitzky et al. 2003). Two strands of the
literature are of particular relevance to our study. First, much of the
literature from the perspective of ‘instrumental theories’ (Garriga and Mel´
e
2004) is focused on the eects of CSR on corporate performance and
other relevant outcome measures. For instance, Peloza (2009) conducts a
meta-analysis of 128 studies and finds that a majority of studies report
evidence pointing to a significant positive linkage between CSR and financial
Takao Katois at Colgate University and IZA-Bonn. Naomi Kodama is at the Graduate School
of Economics, Hitotsubashi University and ResearchInstitute of Economy, Tradeand Industry.
C
2017 John Wiley& Sons Ltd.
100 British Journal of Industrial Relations
performance, while recognizinga number of potentially serious limitations of
the existing literature. Other scholars focus on outcomes other than financial
performance, such as productivity (S´
anchez and Benito-Hern´
andez 2015),
better recruitment outcomes (Greening and Turban 2000) and investment by
institutional investors (Graves and Waddock 1994). However, this strand of
the literature has been largely silent on gender diversity in the workplace
as a possible outcome of CSR, and there are only a limited number of
qualitative studies addressing gender diversity as an outcome of CSR (see,
for instance, Grosserand Moon 2005; Schultz 2007; Stropnik 2010). In short,
the qualitative literature describes the potentially important role that CSR
can play in enhancing gender diversity, elucidates a number of key challenges
that need to be overcome if CSR is to yield positive outcomes in terms of
gender diversity/equality and proposes some solutions to those challenges.
Our quantitative study complements such qualitative studies by providing
rigorous econometric evidence on the core hypothesis that CSR enhances
gender diversity, and on the relevance of some mediating factors.
Second, although rigorous quantitative analysis of gender diversity in the
workplace as an outcome of CSR is scarce, thereis a rich body of scholarship
on gender diversity at the highest level of corporate organizations (the board
of directors) as a predictor (as opposed to an outcome) of CSR. Specifically
there is an impressive body of evidence pointing to the significant role that
female board members play in promoting CSR and improving corporate
reputations (see, for instance, Bear et al. 2010; Hafsi and Turgut 2013; Mallin
and Michelon 2011; Post et al. 2011; Webb 2004; Zhang et al. 2013).
In summary, the literature on the eects on outcomes of CSR tends to
neglect gender diversity in the workplace as a possibleoutcome of CSR, while
the literature on gender diversity as a predictor of CSR tends to focus on
gender diversity at the top while neglecting it at other levels of corporate
organizations. Our article can be viewed as an attempt to build a bridge
between those two strands of the CSR literature by focusing on gender
diversity at levels belowboard level and considering it as an outcome of CSR.
ThedataweusearefromJapan.TheuseofJapanesedataisofparticular
interest. First, in spite of an impressive growthof the literature on CSR, there
is a dearth of rigorous studies of CSR in Japanese firms. This article fills
this gap by using data on CSR of Japanese firms. Second, and perhaps more
important, in Japan, the gender gaps in the labour market are considerable.
According to the OECD, the gender gap in median earnings for full-time
employees in Japan was approximately 29 per cent in 2012 (i.e. women
earned 29 per cent less than men), which was almost twice as high as the
OECD average. The persistently large gender pay gap in Japan is particularly
troublesome forpolicy makers because gender gaps in educational attainment
have narrowed considerably (Abe 2010). As the proportion of college-
educated womenhas increased, the composition of the full-time workforce has
changed dramatically. In particular, there has been a significant increase in the
proportion of female university graduates among full-time workers. Further,
the average tenure of full-time female workers rose from 6.2 years in 1981 to
C
2017 John Wiley& Sons Ltd.
To continue reading
Request your trial