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

DOI

10.2991/978-94-6463-692-5_3How to use a DOI?

Keywords

Board Diversity; Sustainability Report Disclosure; Corporate Governance

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.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - I Putu Ananda Widvannanda
AU  - Luh Gede Krisna Dewi
AU  - I Gusti Ayu Made Asri Dwija Putri
PY  - 2025
DA  - 2025/05/01
TI  - Board Diversity and Sustainability Report Disclosure: Unveiling the Role of Board Diversity in Driving Sustainable Initiative
BT  - Proceedings of the 12th Gadjah Mada International Conference on Economics and Business (GAMAICEB 2024)
PB  - Atlantis Press
SP  - 23
EP  - 45
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-692-5_3
DO  - 10.2991/978-94-6463-692-5_3
ID  - Widvannanda2025
ER  -