Board Diversity and Sustainable Supply Chain Management: Unraveling the Influence of Diversity

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2024-07-08

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en

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This study examines the extent of a diverse board’s influence on green and social supply chain management (GSCM and SSCM). The study considers these sustainable supply chain concepts as CSR initiatives. The purpose of this study is twofold: it investigates whether the overall relationship between board diversity and CSR can be applied to specific CSR initiatives and examines whether board diversity can be seen as a driver for implementing GSCM and SSCM. Using three different measures of board diversity and eight measures for GSCM and SSCM across 111 firms from 2019 to 2022, this study concludes that board diversity positively influences GSCM and SSCM. However, board diversity is not significant for each item of GSCM and SSCM (i.e., also specific CSR initiatives) and, therefore, challenges the overall relationship between board diversity and CSR. The study also investigates the moderating role of a sustainability committee’s presence and concludes that it does not strengthen the main relationship. Moreover, the dominance of a sustainability committee’s presence outweighs the board’s necessity to diversify.

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Faculteit der Managementwetenschappen