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Biodiversity disclosure, sustainable development and environmental initiatives: Does board gender diversity matter?

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  • Mariela Carvajal
  • Muhammad Nadeem
  • Rashid Zaman

Abstract

Modern‐day corporations are under intense stakeholder pressure to incorporate environmentalism, particularly biodiversity initiatives, into their business strategy. Building on upper echelon and gender socialization theories, we investigate the effect of board gender diversity (BGD) on the biodiversity initiatives undertaken by firms for the restoration and rehabilitation of damaged ecosystems and/or to minimize their environmental impacts. Using data on 2406 US firms covered in the ASSET4 database for the period 2002–2018 (15,337 firm‐year observations), we document a significant positive association between BGD and both biodiversity restoration protection and impact reduction initiatives. Our findings are consistent for exploitative and nonexploitative industries, as well as for the pre‐ and post‐UN resolution on conservation of biodiversity periods. We further develop a causal relationship through the positive impact of BGD on management environment training and environmental partnerships—possible mechanisms by which BGD may impact biodiversity initiatives. The results suggest that BGD is vital for developing strategies concerning the restoration, protection and impact reduction of biodiversity and ecosystems. Our findings are of interest to legislators and regulators who are interested in assessing biodiversity initiatives, improving environmental policies and promoting gender diversity in company director boards.

Suggested Citation

  • Mariela Carvajal & Muhammad Nadeem & Rashid Zaman, 2022. "Biodiversity disclosure, sustainable development and environmental initiatives: Does board gender diversity matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 969-987, March.
    • Handle: RePEc:bla:bstrat:v:31:y:2022:i:3:p:969-987
    DOI: 10.1002/bse.2929
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    References listed on IDEAS

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    2. Ayman Issa & Nasrine Bensalem, 2023. "Are gender‐diverse boards eco‐innovative? The mediating role of corporate social responsibility strategy," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 742-754, March.
    3. Aysad Gudekli & Murat Ertan Dogan & Tulay Goru Dogan & Duygu Gudekli, 2023. "Gender, Sustainability, and Urbanism: A Systematic Review of Literature and Cross-Cluster Analysis," Sustainability, MDPI, vol. 15(20), pages 1-18, October.
    4. Raghda Abdellatif Abdelkhalik Elsayed, 2023. "Exploring the financial consequences of biodiversity disclosure: how does biodiversity disclosure affect firms' financial performance?," Future Business Journal, Springer, vol. 9(1), pages 1-18, December.
    5. Umar Nawaz Kayani & Ahmet Faruk Aysan & Umer Iqbal & Muhammad Arif & Ijaz Ur Rehman, 2022. "Foreign Direct Investment Settlement, Novel Energy Methods and CO2 Emissions: Evidence From United Arab Emirates," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 364-369, November.
    6. Letycja Sołoducho-Pelc & Adam Sulich, 2022. "Natural Environment Protection Strategies and Green Management Style: Literature Review," Sustainability, MDPI, vol. 14(17), pages 1-25, August.

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