Investigating the impact of workforce racial diversity on the organizational corporate social responsibility performance: An institutional logics perspective Academic Article uri icon

abstract

  • © 2018 Elsevier Inc. Racial diversity is considered an integral part of the business world. The extant literature has focused on the effect of racial diversity on a firm's financial performance and presented mixed findings. Building on the institutional logics lens and using a sample of 204 firms belonging to 9 industries and spread across 21 countries for a period of six years, we explore the impact of workforce racial diversity on the Corporate Social Responsibility Performance (CSRP) of a firm. In addition, we also investigate the contingency effects of a firm's absorptive capacity and slack resources on the proposed relationship. Using a seemingly unrelated regression model and accounting for endogeneity, we find that racial diversity has an inverted U-shaped relationship with a firm's financial and social performance and has a U-shaped relationship with its environmental performance. We also find significant moderating effects. Thus, we contribute to the theory and practice in the field.

published proceedings

  • Journal of Business Research

author list (cited authors)

  • Sharma, A., Moses, A. C., Borah, S. B., & Adhikary, A

citation count

  • 11

complete list of authors

  • Sharma, Amalesh||Moses, Aditya Christopher||Borah, Sourav Bikash||Adhikary, Anirban

publication date

  • February 2020