The Effect of the Board of Directors' Characteristics on Corporate Social Responsibility Disclosure by Islamic Banks: Evidence from Gulf Cooperation Council Countries

Corporate social activities have become major subjects because of their effects on the quality of life of citizens, in particular, and on society at large. Currently, there is an increased awareness of social responsibility due to the challenges faced by financial institutions (particularly Islamic banking) globally. This paper examines the influence of characteristics of the board of directors, that is, board size, board composition, and the separation of the roles of chief executive officer (CEO) and chairman, on corporate social responsibility (CSR) disclosure. Based on the framework of legitimacy theory, the findings show that CSR disclosure has a negative and insignificant relationship with board composition. By contrast, the study found a positive association, although insignificant, between CSR disclosure and other characteristics of the board of directors (board size and separation of the roles of CEO and chairman). The results indicate that the corporate governance structure of a board of directors within Islamic banks of the GCC region does not play a major role in CSR disclosure, largely due to family control.