Extant research in the hospitality and tourism (H&T) industry has largely ignored the influence of contextual factors like institutional environment and board characteristics on the financial slack and CSR relationship. Our study combines the institutional differences hypothesis, slack resource theory, and agency theory to provide a nuanced understanding of this relationship in the context of the H&T industry in India. Using a panel of 464 firms from three H&T sectors between 2011 and 2019, our analyses indicate a U-shaped relationship between financial slack and CSR intensity, and a positive moderating effect of board gender diversity and board independence. We show how resource-constrained H&T firms in emerging markets with underdeveloped institutions deploy slack resources towards CSR and, rather than setting a minimum threshold, we posit that governmental policies should strengthen capital markets so that H&T firms can voluntarily invest in strategic CSR. Further, strengthening board diversity policies enables H&T firms to invest in CSR organically.