Do birds of a feather certify together? The impact of board interlocks on CSR certification homophily Academic Article in Scopus uri icon

abstract

  • © 2022 Elsevier Inc.This study examines the homophily of Corporate Social Responsibility (CSR) practices among listed firms in the Bolsa Mexicana de Valores (Mexican Stock Exchange) (MSE). We draw upon concepts from institutional and social network theories to demonstrate how board interlocks among firms in the MSE can influence CSR practice adoption. Using a Mexican social and environmental certification, Empresa Socialmente Responsable (ESR), to represent the adoption of social and environmental practices and board interlocks among listed firms, we test hypotheses using multiple regression - quadratic assignment procedures (MR-QAP), which is relevant to the analysis of networks. Our main contribution is to show that mimetic, normative, and coercive institutional forces influence CSR adoption differently. Our results suggest that imitation via board interlocks is the most influential mechanism for CSR certification homophily among listed firms in Mexico. Normative pressures via industry affiliation are also influential, but only when combined with connections within the board interlock network. Our results provide insights into the wider diffusion of CSR practice.

publication date

  • May 1, 2022