The link between CSR and the board’s role. A theoretical framework on non-financial disclosure

This study aims to review the main organisational theories identifying the significant roles of the board of directors in order to analyse how the board composition influences both CSR activity and disclosure. We present a literature review of the main organisational theories in order to identify their implications for non-financial information disclosure and disclosure of diversity information. The non-financial information is a tool for organisations to discharge their accountability to various stakeholder groups, allowing the organisation to legitimise its performance and manage the perception of its stakeholders and thus preserving its image and the status of legitimacy in society. Moreover, it seems that disclosing the board composition has a positive effect on corporate performance by enhancing transparency, reducing information asymmetry, discharging accountability, signalling legitimacy, and achieving excellence. The main limitation of the study is that the findings could be generalised by applying quantitative research methods, such as a multiple case study approach, which is useful to explore the dissemination of a new phenomenon. In order to define a theoretical framework, for each theory we highlighted its implications for nonfinancial information disclosure and disclosure of board diversity information. The study aims to contribute to the debate on CSR by providing insights for future research.