A study by researchers at the Sasin School of Management at Chulalongkorn University in Bangkok, Thailand, found that corporations based in the United States that had greater gender diversity on their board of directors were more likely to be more socially responsible.
The investigators noted that having female directors can be a leading indicator of a company’s commitment to creating a positive social impact, and embracing gender inclusivity when forming a board is the beginning of the journey towards building a sustainable organization.
The authors note that “with the right composition, boards can be effective in driving long-term vision and creating good stakeholder relationships, contributing to firms’ social capital. We analyze board characteristics of publicly listed US firms and find evidence that board gender diversity (proportion of female directors) is positively associated with firms’ social commitment to human rights, product responsibility, and their community and workforce.
“The presence of board gender diversity leads to firms’ social commitment and a sustainable future,” said co-author Pattanaporn Chatjuthamard.
Dr. Chatjuthamard holds a master’s degree and a Ph.D. in finance from the University of Wisconsin.
The full study, “Board Gender Diversity, Corporate Social Commitment and Sustainability,” was published on the website of the journal of Corporate Social Responsibility and Environmental Management. It may be accessed here.