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Corporate Sustainability Through the Presence of Women in Boards: Empirical Evidence from Developing Economy

Author

Listed:
  • Fernando Dilrukshi

    (Wayamba University of Sri Lanka, Kuliyapitiya, Sri Lanka)

  • Dissanayake Hiranya

    (Wayamba University of Sri Lanka, Kuliyapitiya, Sri Lanka)

  • Deshika Thilini

    (Wayamba University of Sri Lanka, Kuliyapitiya, Sri Lanka)

  • Iddagoda Anuradha

    (University of Sri Jayewardenepura, Nugegoda, Sri Lanka)

Abstract

The purpose of this study is to address the emerging concept of women on boards as a solution to breaking gender barriers in boardrooms and its influence on sustainability reporting in Sri Lankan companies. The study aims to explore the relationship between the representation of women on boards and sustainability reporting, while also investigating the potential role of gender diversity in promoting sustainability in social, economic, and environmental spheres. The research adopts a comparative approach to examine the degree of women on boards and the level of sustainability reporting in Sri Lanka. The study utilizes the resource dependency theory, contingency theory, and agency theory as theoretical frameworks to analyze the association between women directors on boards and sustainability performance. Archival data from the highest market capitalization companies during the period of 2016 to 2019 is collected from audited annual financial statements. The study reveals a significant positive relationship between the presence of women on boards and sustainability reporting in Sri Lanka. It addresses the empirical and contextual gaps in this area, providing valuable insights into the positive impact of gender diversity on corporate sustainability practices in the Sri Lankan context. The research emphasizes the pragmatic solution of including women’s voices in the boardroom to foster gender diversity and create an interest in sustainability, which is an emerging trend in the country. Overall, this study adds valuable knowledge to the fields of corporate governance, gender diversity, and sustainability reporting.

Suggested Citation

  • Fernando Dilrukshi & Dissanayake Hiranya & Deshika Thilini & Iddagoda Anuradha, 2023. "Corporate Sustainability Through the Presence of Women in Boards: Empirical Evidence from Developing Economy," HOLISTICA – Journal of Business and Public Administration, Sciendo, vol. 14(2), pages 82-96, December.
    • Handle: RePEc:vrs:hjobpa:v:14:y:2023:i:2:p:82-96:n:7
    DOI: 10.2478/hjbpa-2023-0017
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    References listed on IDEAS

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    1. Susanne Arvidsson, 2010. "Communication of Corporate Social Responsibility: A Study of the Views of Management Teams in Large Companies," Journal of Business Ethics, Springer, vol. 96(3), pages 339-354, October.
    2. Carmelo Reverte, 2009. "Determinants of Corporate Social Responsibility Disclosure Ratings by Spanish Listed Firms," Journal of Business Ethics, Springer, vol. 88(2), pages 351-366, August.
    3. Stephen Bear & Noushi Rahman & Corinne Post, 2010. "The Impact of Board Diversity and Gender Composition on Corporate Social Responsibility and Firm Reputation," Journal of Business Ethics, Springer, vol. 97(2), pages 207-221, December.
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