5.2.2. Board CSR Strategy (H2)

The results show that the board CSR strategy has a significant and positive association with the disclosure of ESG quality as fundamental to the three pillars individually. This supports H2 that there is a significant and positive association between board CSR strategy and ESG quality disclosure scores. Our evidence suggests that the presence of a CSR board strategy discusses environmental and social issues and integrates them into the firm's strategic plans. The results show that there is a positive association between the presence of a board strategy and the levels of ESG disclosure [72]. Specifically, Helfaya and Moussa find that there is an overall positive association between the presence of the board's CSR strategy and overall sustainable business practices [12]. Our evidence of an overall positive association is also consistent with findings from Wickert et al.; the presence of the board CSR strategy enhances the long-term relationship between organization and stakeholders due to the focus on CSR for wider stakeholders and for the internal organization [71]. The results also provide support for the theoretical frameworks for signaling and stakeholder theories. Within the presence and orientation of the CSR strategy, signaling theory maintains an instrumental view of CSR initiatives that determine the firm's strategy and create signals for capital markets [71]. Board CSR strategy also encompasses legitimacy theory as the firms seek legitimacy through the act of having a board CSR strategy of long-term sustainable goals for the organization [21].
