Enhancing Corporate Sustainability: The Role of Gender Diversity in ESG Strategic Alignment: Evidence from S&P 500
Keywords:
ESG risk scores, Corporate Sustainability, Female CEO, Firm PerformanceAbstract
This study investigates the impact of Firm Performance, Size, Revenue Growth and the moderating Female CEO on corporate sustainability using a dataset of 426 publicly traded firms listed in S&P 500 index. The corporate sustainability is measured using ESG risk scores. We use descriptive, correlational, and regression analyses to achieve the objective. The results indicate a significant positive relationship between firm performance, measured by Tobin’s Q, and ESG risk scores. It is proved that firms with higher market performance typically demonstrate superior sustainability practices. Importantly, the presence of Female CEO significantly enhances this relationship. However, the influence of female CEO varies, suggesting that the impact of gender diversity on corporate sustainability is contingent upon firm-specific factors like firm performance and size. This study contributes to the discourse on corporate sustainability by emphasizing the strategic value of enhancing gender diversity and integrating sustainability goals within corporate governance frameworks. It proposes actionable strategies for corporations to improve gender diversity and effectively align sustainability objectives with broader business goals, fostering improved corporate and societal outcomes.
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