Gender diversity, board of directors expertise and transparency of environmental, social and governance (esg) disclosure: evidence from Brazil
Abstract
Objective: To investigate the effects of gender diversity and board expertise on environmental, social and governance (ESG) disclosure transparency.
Methodology: Descriptive, documentary and quantitative research carried out using multiple linear regression (with robust standard errors), with a sample of 56 Brazilian companies, during the period from 2016 to 2020.
Originality/Relevance: The analysis of the effects of corporate governance mechanisms on ESG disclosure is incipient in the national context, especially with regard to gender diversity and expertise, and provides an explanation for the conflicting results found in the literature, denoting in which ESG aspects the characteristics of the councils contribute to its implementation and dissemination.
Results: ESG disclosure improves with the presence of women on the board. However, when ESG aspects were analyzed individually, the results showed that gender diversity on the board contributes positively to social initiatives, with no significant effects on environmental and governance scores. The effects of board members' expertise on ESG disclosure have not been confirmed.
Contributions: This research contributes to studies on corporate governance and ESG in Brazil, by advancing research on gender diversity and expertise of board of directors (CA) members and their effects on ESG practices. It helps companies understand the behavior of the Board that have the participation of directors in the face of ESG strategies and provides new insights into the proposed relationships. The findings are important for regulators and policymakers regarding the monitoring of board diversity, as boards of directors with female participation influence to minimize the impacts of business activities on the environment and society.
Downloads
References
Ahmad, N. J., Rashid, A., & Gow, J. (2018). Corporate board gender diversity and corporate social responsibility reporting in Malaysia. Gender, Technology and Development, 22(2), 87-108. https://doi.org/10.1080/09718524.2018.1496671
Alazzani, A., Hassanein, A., & Aljanadi, Y. (2017). Impact of gender diversity on social and environmental performance: evidence from Malaysia. Corporate Governance: The International Journal of Business in Society, 17(2), 266-283. https://doi.org/10.1108/CG-12-2015-0161
Al-Jaifi, H. A. (2020). Board gender diversity and environmental, social and corporate governance performance: evidence from ASEAN banks. Asia-Pacific Journal of Business Administration, 12(3/4), 269-281. https://doi.org/10.1108/APJBA-12-2018-0222
Amran, A., & Haniffa, R. (2011). Evidence in development of sustainability reporting: A case of a developing country. Business Strategy and the Environment, 20, 141–156. https://doi.org/10.1002/bse.672
Bear, S., Rahman, N., & Post, C. (2010). The impact of board diversity and gender composition on corporate social responsibility and firm reputation. Journal of Business Ethics, 97(2), 207-221. https://doi.org/10.1007/s10551-010-0505-2
Beji, R., Yousfi, O., Loukil, N., & Omri, A. (2021). Board diversity and corporate social responsibility: Empirical evidence from France. Journal of Business Ethics, 173(1), 133-155. https://doi.org/10.1007/s10551-020-04522-4
Bowrin, A. R. (2013). Corporate social and environmental reporting in the Caribbean. Social Responsibility Journal, 9(2), 259-280. https://doi.org/10.1108/SRJ-08-2011-0074
Byron, K.; Post, C. (2016). Women on boards of directors and corporate social performance: A meta‐analysis. Corporate Governance: An International Review, 24(4), 428-442. https://doi.org/10.1111/corg.12165
Cucari, N., Esposito de Falco, S., & Orlando, B. (2018). Diversity of board of directors and environmental social governance: Evidence from Italian listed companies. Corporate Social Responsibility and Environmental Management, 25(3), 250-266. https://doi.org/10.1002/csr.1452
Dani, A. C., Picolo, J. D., & Klann, R. C. (2018). Gender influence, social responsibility and governance in performance. RAUSP Management Journal, 54(2), 154-177. https://doi.org/10.1108/RAUSP-07-2018-0041
Dienes, D., & Velte, P. (2016). The impact of supervisory board composition on CSR reporting. Evidence from the German two-tier system. Sustainability, 8(1), 63-83. https://doi.org/10.3390/su8010063
Duque-Grisales, E., & Aguilera-Caracuel, J. (2021). Environmental, social and governance (ESG) scores and financial performance of Multilatinas: Moderating effects of geographic international diversification and financial slack. Journal of Business Ethics, 168, 315-334. https://doi.org/10.1007/s10551-019-04177-w
Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Pittman: Marshfield.
Freeman, R. E. (2010). Strategic Management: A Stakeholder Approach. Cambridge University Press, New York.
Galbreath, J. (2016). When do board and management resources complement each other? A study of effects on corporate social responsibility. Journal of Business Ethics, 136(2), 281-292. https://doi.org/10.1007/s10551-014-2519-7
Gillan, S. L., Koch, A., & Starks, L. T. (2021). Firms and social responsibility: A review of ESG and CSR research in corporate finance. Journal of Corporate Finance, 66, 1-16. https://doi.org/10.1016/j.jcorpfin.2021.101889
Husted, B. W., & Sousa-Filho, J. M. de. (2019). Board structure and environmental, social, and governance disclosure in Latin America. Journal of Business Research, 102, 220-227. https://doi.org/10.1016/j.jbusres.2018.01.017
Khan, M. K., Zahid, R. M., Saleem, A., & Sági, J. (2021). Board Composition and Social & Environmental Accountability: A Dynamic Model Analysis of Chinese Firms. Sustainability, 13(19), 1-18. https://doi.org/10.3390/su131910662
Lagasio, V., & Cucari, N. (2019). Corporate governance and environmental social governance disclosure: A meta‐analytical review. Corporate Social Responsibility and Environmental Management, 26(4), 701-711. https://doi.org/10.1002/csr.1716
Li, Y., Gong, M., Zhang, X. Y., & Koh, L. (2018). The impact of environmental, social, and governance disclosure on firm value: The role of CEO power. British Accounting Review, 50(1), 60-75. https://doi.org/10.1016/j.bar.2017.09.007
Lu, J., & Herremans, I. M. (2019). Board gender diversity and environmental performance: An industries perspective. Business Strategy and the Environment, 28(7), 1449-1464. https://doi.org/10.1002/bse.2326
Manita, R., Bruna, M. G., Dang, R., & Houanti, L. H. (2018). Board gender diversity and ESG disclosure: Evidence from the USA. Journal of Applied Accounting Research, 19(2), 206-224. https://doi.org/10.1108/JAAR-01-2017-0024
Mastella, M., Vancin, D., Perlin, M., & Kirch, G. (2021). Board gender diversity: performance and risk of Brazilian firms. Gender in Management, 36(4), 498-518. https://doi.org/10.1108/GM-06-2019-0088
Orazalin, N., & Baydauletov, M. (2020). Corporate social responsibility strategy and corporate environmental and social performance: The moderating role of board gender diversity. Corporate Social Responsibility and Environmental Management, 27(4), 1664-1676. https://doi.org/10.1002/csr.1915
Post, C., Rahman, N., & Rubow, E. (2011). Green governance: Boards of directors' composition and environmental corporate social responsibility. Business & Society, 50(1), 189-223. https://doi.org/10.1177/0007650310394642
Projeto de Lei nº 7179 (2017). Projeto de Lei nº 7179, de 2017, que dispõe sobre a participação de mulheres nos conselhos de administração das empresas. Disponível em: https://www.camara.leg.br/proposicoes (04 nov. 2021).
Prudêncio, P., Forte, H., Crisóstomo, V., & Vasconcelos, A. (2021). Efeito da Diversidade do Conselho de Administração e da Diretoria Executiva na Responsabilidade Social Corporativa. Brazilian Business Review, 18(2), 1-22. https://doi.org/10.15728/bbr.2021.18.2.1
Romano, M., Cirillo, A., Favino, C., & Netti, A. (2020). ESG (Environmental, Social and Governance) Performance and Board Gender Diversity: The Moderating Role of CEO Duality. Sustainability, 12(21), 92-98. https://doi.org/10.3390/su12219298
Shakil, M. H., Tasnia, M., & Mostafiz, M. I. (2021). Board gender diversity and environmental, social and governance performance of US banks: moderating role of environmental, social and corporate governance controversies. International Journal of Bank Marketing, 39(4), 661-677. https://doi.org/10.1108/IJBM-04-2020-0210
Silveira, A. di M. da., & Donaggio, A. R. F. (2019). A importância da diversidade de gênero nos conselhos de administração para a promoção da responsabilidade social corporativa. Direito, Economia e Sociedade Contemporânea, 2(2), 11-42. https://doi.org/10.33389/desc.v2n2.2019.p11-42
Wasiuzzaman, S., & Wan Mohammad, W. M. (2020). Board gender diversity and transparency of environmental, social and governance disclosure: Evidence from Malaysia. Managerial and Decision Economics, 41(1), 145-156. https://doi.org/10.1002/mde.3099
Wan Mohammad, W. M., & Wasiuzzaman, S. (2021). Environmental, Social and Governance (ESG) Disclosure, Competitive Advantage and Performance of firms in Malaysia. Cleaner Environmental Systems, 2, 100-115. https://doi.org/10.1016/j.cesys.2021.100015
Wang, Y., Wilson, C., & Li, Y. (2021). Gender attitudes and the effect of board gender diversity on corporate environmental responsibility. Emerging Markets Review, 47, 1-17. https://doi.org/10.1016/j.ememar.2020.100744
DECLARATION OF ORIGINALITY AND COPYRIGHTS
I Declare that current article is original and has not been submitted for publication, in part or in whole, to any other national or international journal.
The copyrights belong exclusively to the authors. Published content is licensed under Creative Commons Attribution 3.0 (CC BY 3.0) guidelines, which allows sharing (copy and distribution of the material in any medium or format) and adaptation (remix, transform, and build upon the material) for any purpose, even commercially, under the terms of attribution.
Read this link for further information on how to use CC BY 3.0 properly.
