This study aims to examine how family involvement in the management and control of Brazilian firms listed on the B3 stock exchange impacts corporate social responsibility (CSR) practices directed at employees. It explores the heterogeneous roles of family members in shaping CSR strategies related to employee welfare.
Using a panel data set of 202 companies from 2010 to 2022, the authors used regression models and propensity score matching to analyze the influence of family presence in executive roles, board positions and controlling ownership on CSR dimensions such as compensation, training and diversity rights.
The findings reveal that family members on boards of directors and executive management positively influence transactional CSR practices, such as compensation and benefits. Conversely, controlling family shareholders negatively affects all CSR dimensions, underscoring the complex dynamics of family firm governance.
The study focuses on Brazilian listed family firms, which may limit the generalizability of findings. Future research should consider comparative analyses across different institutional contexts and explore broader CSR dimensions, including environmental and community practices.
Findings underscore the importance of the specific roles that family members play in governance for shaping CSR strategies, especially those targeting employee benefits.
This study provides insights into how family businesses can align CSR practices with societal expectations, enhancing employee welfare and stakeholder engagement.
This research advances the understanding of the heterogeneous effects of family involvement on CSR practices, contributing to socio-emotional wealth and social exchange theories in the context of CSR and family firms.
