Internal Governance Mechanisms, Board Composition, and Social Performance

Abstract

Corporate governance plays a pivotal role in shaping organizational behavior and outcomes. This study empirically investigates the influence of internal governance mechanisms, particularly board composition, on social performance within Moroccan industrial firms. Drawing on data from 86 listed firms, the authors employ partial least squares structural equation modeling (PLS-SEM) to analyze the relationships between board size, CEO duality, the presence of a corporate social responsibility (CSR) committee, and social performance metrics. The findings reveal that larger boards and the establishment of CSR committees significantly enhance social performance, while CEO duality exerts a negative impact. These results highlight the importance of effective board governance and dedicated CSR structures in driving socially responsible business practices. This study contributes to the growing body of literature on corporate governance and social performance, offering valuable insights for policymakers, practitioners, and researchers seeking to improve corporate sustainability.