Board Gender Composition and Corporate Responses to Stakeholder Protest

• In Event: 2451 - Section on Organizations, Occupations, and Work Refereed Roundtables (1 hour)
  In Refereed Roundtable 60min: Table 20. Representation and Inclusivity I

Abstract

Existing literature on boards and political behavior reveals that boards are important nodes of strategic decision-making for firms. At the same time, another body of literature on women and corporate boards has demonstrated the multitude of ways in which the presence of women in top management positions shapes firm behavior. Research on social movements and corporations has illuminated a number of factors which shape the outcomes of social movement protest. This paper brings together all three literatures to examine the impact of board gender diversity in the context of stakeholder pressure. Drawing on an original dataset comprised of protests against Fortune 500 corporations (2005-2010), we show that corporate boards of companies with higher percentages of female board members are more likely to offer concessions to stakeholders. In addition, our study also examines another firm-level characteristic: the average number of directorships held by female and male directors. Here too we find that board gender composition is consequential with firms whose female directors average a higher number of board positions being more likely to offer concessions. By integrating research on gender diversity of corporate boards and stakeholder protest, we contribute to a greater understanding of what factors make some organizations more or less closed to activist influence. Finally, we add to networked studies of corporate political behavior by showing how the number of board connections that male and female directors have, can shape firm responses to social movement pressure.

Author

• Chie Togami, University of Pittsburgh