Evaluating the influence of board diversity on corporate social responsibility and sustainable development: Evidence from asian countries

Abstract

Sustainable development is one of the crucial goals that governments worldwide are striving towards. In this process, paying attention to the corporate social responsibilities is also highly important. In this research, the author's team investigates the relationship between board diversity and the corporate social responsibilities, as well as sustainable development. The research data were collected from non-financial companies with a market capitalization exceeding $2 billion in the Asia region, during the period 2019-2022. The authors utilized Principal Component Analysis (PCA) with three variables: culture diversity (CD), gender diversity (GD), and experience diversity (EX), to create the Board Diversity Index (BD). The authors conducted descriptive statistical analysis, correlation matrix, multicollinearity tests, Ordinary Least Squares (OLS) regression, Fixed Effects Model (FEM), Random Effects Model (REM), autocorrelation, and heteroscedasticity tests. Finally, the research team employed Feasible Generalized Least Squares (FGLS) to address model shortcomings. The results of the final regression indicate a positive relationship between board diversity and the corporate social responsibilities, as well as sustainable development. The findings of the author's research are valuable for providing policy implications to promote activities for the community and the environment of businesses, contributing to the achievement of sustainable development goals.