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The role of diversity on the environmental performance and transparency

Author

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  • Gerçek Özparlak

    (Istanbul Beykent University)

  • Burcu Gürol

    (Baskent University)

Abstract

The 17 Sustainable Development Goals (SDGs) set forth by the United Nations (UN) serve the idea of a better world. Although the goals may seem separate from each other, they are all interrelated, and approaching one goal can also contribute to achieving other goals. “SDG 5 Gender Equality” and “SDG 10 Reduced Inequalities” focus on eliminating gender-related disadvantages and bringing the richness of diversity into all areas of life. Hence, different notions can be encouraged and implemented to solve today’s environmental and social problems. Nonetheless, examining the literature, it is observed that there is no consensus on the impacts of diversity on the board regarding businesses’ financial and non-financial performances. In this study, we analyze the relationship between diversity measures (board size and proportion of women on the board) and the business’s environmental performance. Our dataset consists of 14 years of data from 166 businesses traded in the USA and European stock exchanges. Unlike previous studies, analyses are conducted with many tests concentrating on the short and long terms. The results indicate a positive relationship between the diversity variables (women on board ratio and board size) and the environmental performance of the businesses in the long run, if not in the short run. According to these results, it may take time to observe the positive effect, and environmental and social benefits will be achieved by continuing to work resolutely in line with the targets. Graphical Abstract

Suggested Citation

  • Gerçek Özparlak & Burcu Gürol, 2025. "The role of diversity on the environmental performance and transparency," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(1), pages 483-507, January.
    • Handle: RePEc:spr:endesu:v:27:y:2025:i:1:d:10.1007_s10668-023-04193-x
    DOI: 10.1007/s10668-023-04193-x
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