Purpose This study examines the moderating effect of the corporate social responsibility (CSR) committee on the relationship between CSR and firm performance (FP). Additionally, the study explores the potential channels through which the CSR committee influences the relationship between CSR and FP. Design/methodology/approach The sample comprises 1,544 unique firms from the Asia–Pacific markets from 2002 to 2018. The study uses ordinary least squares regression, controlling for time and industry-level heterogeneity. Two-stage least squares regression, the generalised method of moments and propensity score matching approaches are used to address potential endogeneity. Findings Building on the stakeholder perspective that a CSR committee is an essential component of corporate governance and facilitates firms' effective implementation of CSR strategies, the paper finds that a CSR committee strengthens the association between CSR and FP. The positive moderating effect is explained by the ability of the CSR committee to promote CSR disclosures and mitigate CSR-related controversies. Moreover, the CSR committee is more effective in stakeholder-oriented countries and firms with low agency costs. The results remain robust across several robustness tests. Originality/value The study offers fresh evidence on the role of the CSR committee in augmenting CSR's contribution to FP in Asia–Pacific markets. Moreover, the study identifies potential channels through which the CSR committee enhances the CSR's contribution to FP.
Ilyas et al. (Tue,) studied this question.