Can gender diversity on boards of directors improve companies' social commitment and sustainability?
Social commitment leads to good relationships between companies and its stakeholders, and it is the board of directors' responsibility to ensure that companies fulfill their commitment to the communities and society of which they are a member. In a study published in Corporate Social Responsibility and Environmental Management, researchers who analyzed the boards of directors of publicly listed US firms found that board gender diversity is positively associated with firms' social commitment to human rights, product responsibility, and their community and workforce.
The investigators noted that having female directors can be a leading indicator of a company's commitment to creating a positive social impact, and embracing gender inclusivity when forming a board is the beginning of the journey towards building a sustainable organization.
"The presence of board gender diversity leads to firms' social commitment and sustainable future," said corresponding author Pattanaporn Chatjuthamard, Ph.D., of Sasin School of Management, in Thailand.
More information: Pochara Arayakarnkul et al, Board gender diversity, corporate social commitment and sustainability, Corporate Social Responsibility and Environmental Management (2022). DOI: 10.1002/csr.2320
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