The Contribution Of Board Gender Diversity To Social Goals: Evidence From Australia

Abstract

The pandemic has underscored gender inequality in the labor market, as social distancing measures led to job losses, increased domestic violence, and a greater burden of unpaid care work at home. Despite women being underrepresented in executive and management roles, they significantly contribute to firm value, particularly in terms of social engagement. Prior studies have focused on exploring the connection between a gender-balanced board and the firm’s outcome. This study aims to explore the impact of board gender diversity on the social and sustainability goals of firms. Data were gathered from the top 200 firms listed on the Australian Securities Exchange (ASX200) during the years 2019 and 2023. We use the technique of panel regression to analyze the relationships between variables. The findings indicate that having more women on boards positively affects a company's social commitment. Specifically, it makes a positive impact on improvements in employee management, human rights practices, public welfare, and product responsibility. By doing the research thesis, we want to extend the literature by further exploring how women can contribute to the social and sustainability objectives of companies, as well as deliver practical implications for businesses and governments.