Integrating Sustainability into Corporate Governance: An Empirical Study on Board Diversity

Abstract

This study explores the mediating role of corporate social responsibility (CSR) management quality in the relationship between board diversity and CSR performance. It states that generational diversity is a consistent construct of age diversity as variety, and uses three different proxies to measure CSR management quality and performance. The sample consists of 146 companies listed in FTSE 100, DAX 30, and CAC 40 for the year 2009. The results reveal that generational diversity enables a more effective design of vision and strategies to address financial and extra-financial aspects, and consequently, it encourages companies to adopt a sustainable approach to their businesses. This study concludes that generational diversity is a key component for improving good corporate governance codes. The findings of this research recommend enhancing generational diversity in board structures to encourage sustainability in firms that aspire to be in tune with the needs of the times.

The author would like to thank the editor and two anonymous referees for their suggestions and helpful comments that have
 enhanced the quality of this research. The authors also wish acknowledge the financial support received from P1•1B2010-13
 project through the Universitat Jaume I and Sustainability and Corporate Social Responsibility Master Degree (UJI–UNED)