The impact of gender equality in the board of directors on the sustainability vision of corporate companies

Tülye Sekendiz, The Impact of Gender Equality in Boards of Directors on the Sustainability Vision of Corporate Companies, Baskent University, Institute of Social Sciences, Master of Business Administration Thesis Program, 2024 This study examines the impact of female board members on corporate sustainability strategies and explores how this influence varies across different sectors and company sizes. By analyzing the role of gender equality and board diversity in corporate sustainability performance, the contribution of female representation to companies' positioning within sustainability indices is assessed. The study aims to elucidate the connection between the strategic importance of gender equality and the prioritization of sustainability strategies. A mixed-methods approach was employed, integrating both quantitative and qualitative data collection techniques. Quantitative data were derived from the publicly available annual reports of 194 companies listed on the Borsa Istanbul Sustainability Index (XUSRD) with a market capitalization exceeding 10 billion TL. Qualitative data were collected through interviews conducted with 14 female board members from these companies. Descriptive statistics and chi-square tests were utilized in quantitative analyses to identify significant relationships between board diversity, sector, company size, and inclusion in the sustainability index. Thematic analysis was applied to the qualitative data, yielding insights that corroborated the quantitative findings. The quantitative results reveal that the presence of women on corporate boards increases the likelihood of a company's inclusion in the sustainability index, with this effect being moderately significant. Sectoral differences indicate that companies operating in the industrial and service sectors are more likely to be included in the sustainability index compared to other sectors, though this relationship is of low significance. The relationship between company size and sustainability strategies was found to be particularly strong, with larger companies being more likely to feature in the sustainability index. Qualitative findings suggest that female leaders contribute significantly to sustainability strategies through empathy, a long-term perspective, diversity, and innovative approaches. Most participants highlighted the sensitivity of female leaders to environmental, social, and governance (ESG) criteria and their commitment to long-term strategies, which enhance success in this domain. Furthermore, female leaders were emphasized as playing a distinct role in promoting gender equality and developing multidimensional strategies. The research underlines the critical role of increasing female representation on corporate boards in the development and implementation of corporate sustainability strategies. It highlights that larger companies demonstrate greater success in sustainability practices, with female leaders contributing to this success through empathy, a forward-looking perspective, and innovative problem-solving skills. These findings underline the strategic importance of gender equality and board diversity in achieving sustainability goals.