Board Diversity and Sustainability Report Disclosure: Unveiling the Role of Board Diversity in Driving Sustainable Initiative

I Putu Ananda Widvannanda (), Luh Gede Krisna Dewi () and I Gusti Ayu Made Asri Dwija Putri ()
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I Putu Ananda Widvannanda: Udayana University, Faculty of Economics and Business
Luh Gede Krisna Dewi: Udayana University, Faculty of Economics and Business
I Gusti Ayu Made Asri Dwija Putri: Udayana University, Faculty of Economics and Business

A chapter in Proceedings of the 12th Gadjah Mada International Conference on Economics and Business (GAMAICEB 2024), 2025, pp 23-45 from Springer

Abstract: Abstract Introduction/Main Objectives: This research investigates how board diversity and its characteristics affect sustainability reporting practices among organizations where stakeholder emphasis on transparency continues to grow. As companies face mounting pressure to address operational impacts within the Triple Bottom Line context, there is an increasing need to balance profit objectives with ecosystem stewardship and social welfare enhancement. The fundamental relationship between sustainability and corporate governance demonstrates how board decisions substantially shape sustainability reporting practices. Background Problems: This investigation explores how board member heterogeneity and their distinguishing attributes influence sustainability disclosures. Novelty: The study provides an extensive analysis of how various board compositional elements and characteristics affect sustainability reporting practices, addressing a relatively unexplored area where earlier investigations on the topic have produced mixed or varying conclusions. Research Methods: The investigation employs quantitative analysis through panel data regression, examining data from sustainability and annual reports of 155 non-financial sector registered on the Indonesia Stock Exchange between 2018-2022, comprising 473 observations. Findings/Results: The analysis reveals gender diversity as a key facilitator of transparent sustainability reporting, while age diversity demonstrates a significant negative impact. However, educational background, nationality, board size, and meeting frequency showed no significant correlation. Conclusion: Board demographic diversity, particularly regarding gender and age compositions, plays a fundamental role in fostering transparency and accountability in sustainability reporting. These insights emphasize the need for organizations to value gender diversity and regularly evaluate their boards’ sustainability performance.

Keywords: Board Diversity; Sustainability Report Disclosure; Corporate Governance (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-692-5_3

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