Does board diversity influence corporate SDG disclosure in an emerging economy?
Purpose: This research investigates the impact of board of director diversity on a company’s disclosure of Sustainable Development Goals (SDGs). The term board diversity encompasses a range of characteristics, including but not limited to nationality, gender, age, tenure, educational level and finan...
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| Príomhchruthaitheoirí: | , , |
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| Formáid: | Alt |
| Teanga: | Béarla |
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AOSIS
2025-06-01
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| Sraith: | South African Journal of Business Management |
| Ábhair: | |
| Rochtain ar líne: | https://sajbm.org/index.php/sajbm/article/view/5040 |
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| Achoimre: | Purpose: This research investigates the impact of board of director diversity on a company’s disclosure of Sustainable Development Goals (SDGs). The term board diversity encompasses a range of characteristics, including but not limited to nationality, gender, age, tenure, educational level and financial expertise.
Design/methodology/approach: A sample was drawn from the non-financial sector of Indonesian listed companies over the period 2021–2023, and included only those companies that had issued sustainability reports in accordance with the Global Reporting Initiative (GRI) standards. The hypothesis was tested using ordinary least squares with fixed effects and robust standard errors.
Findings/results: The results indicate that overall board diversity significantly impacts the disclosure of SDGs. Further analysis demonstrates that diversity in terms of age, educational level and financial expertise enhances this disclosure. In contrast, diversity in terms of nationality, gender and tenure does not have the same impact. The results are coherent when the SDGs are categorised according to their respective pillars.
Practical implications: This research provides insights for companies to prioritise diversity in age, education and financial expertise when selecting board members. This strategy can enhance SDG disclosure transparency and strengthen the company’s reputation with investors and stakeholders.
Originality/value: The literature on the relationship between board diversity and corporate SDG disclosure is limited. This study contributes by highlighting the importance of prioritising diversity in age, education and financial expertise when selecting board members. |
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| ISSN: | 2078-5585 2078-5976 |