1 BOARD DIVERSITY AND GENDER COMPOSITION ON CORPORATE SOCIAL RESPONSIBILITY AND FIRM REPUTATION IN INDONESIA Farah Margaretha Ratna Isnaini Trisakti University Kyai Tapa Street, Grogol, Jakarta Barat 11450 Email: farahmargaretha@yahoo.com Abstract The purpose of this study was to find out the impact of board diversity and gender composition on CSR performance and firm reputation. This study also revealed the role of CSR performance as a mediator in the impact of board diversity, gender composition, and firm reputation. Samples were chosen from companies awarded Indonesia’s Best Wealth Creator Award for year 2010–2012 by SWA Magazine, Indonesia, using purposive sampling. This study showed that CSR performance and gender composition had positive impact on firm reputation but did not significantly impact board diversity . Keywords: Diversity, CSR, Performance, Gender, Reputation Abstrak Tujuan dari penelitian adalah untuk mengetahui pengaruh keberagaman direksi dan komposisi direksi pada kinerja CSR dan reputasi perusahaan. Selain itu, penelitian ini juga mengungkapkan peran kinerja CSR sebagai mediator pada pengaruh antara keberagaman direksi, komposisi direksi dan reputasi perusahaan. Sampel diambil dari perusahaan penerima penghargaan Indonesia’s Best Wealth Creator Award versi Majalah SWA Indonesia 2010–2012 dengan teknik purposive sampling. Hasil penelitian menunjukkan kinerja CSR dan gender berpengaruh positif terhadap reputasi perusahaan tetapi tidak berpengaruh terhadap keberagaman dewan direksi . Kata Kunci: Keberagaman, CSR, Kinerja, Gender, Reputasi INTRODUCTION Firm reputation represents public perception of a firm or company from time to time. There are various company performances which contribute to firm reputation, among others the result of the accounting calculation of profit and risk factors, market share, media visibility, stock ownership, dividend allow- ances, firm size, and social concern (Fombrun & Shanley, 1990). A company may gain many benefits from the positive reputation it posseses, such as in- creasing company’s attractiveness to prospective employees, increasing job satisfaction and lessening the inclination to shift to other companies (Bear et al ., 2010); improving company’s image, building com- pany’s image when promoting and marketing new products (Dowling, 2006), and positively influencing company’s financial perfor mance, institutional invest- ment, and share price (Bear et al ., 2010). Besides through firm reputation, a company can also build a positive reputation by fulfilling its res- ponsibility in the preservation of environment and social justice (Marshall, 2007). Actions which show corporate social responsibility (CSR) can strengthen a company’s reputation. Branco & Rondrigues (2006) stated that CSR enabled a company to raise its repu- tation in the perception of extensive stakeholders which included customers, suppliers, competitors, banks and investors. If a CSR program was well com- municated to the public, the program could help raise the company’s reputation and credibility (Carter et al ., 2002). Bear et al . (2010) carried out a research to find out the impact of directors’ resources diversity and the number of female directors in the management board on CSR, which in turn would have an impact on firm reputation. This research is quite appropriate to be performed in Indonesia, where female employees are raising exponentially in public service, and in agri- cultural and industrial sectors since the dawn of the industrialization era in 1970 (The Jakarta Globe, 2011). JMK, VOL. 16, NO. 1, MARET 2014, 1–8 DOI: 10.9744/jmk.16.1.1–8 ISSN 1411-1438 print / ISSN 2338-8234 online