Purpose This study aims to investigate the impact of board diversity on corporate sustainability performance, focusing on South African firms. Grounded on resource-based view, legitimacy and stakeholder theories, the study examines how various dimensions of board diversity gender, nationality, racial and skills diversity impact environmental and social sustainability outcomes. Design/methodology/approach Using a panel research design, the analysis uses data from South African firms with sustainability scores in the London Stock Exchange Group (LSEG, formerly Refinitiv) database over a 21-year period (2002–2022). Findings The findings reveal that racial and skills diversity positively and significantly enhance sustainability performance, while gender and nationality diversity do not exhibit significant effects. Moreover, the Broad-Based Black Economic Empowerment program positively influences the diversity-sustainability relationship, highlighting the importance of policy and developmental contexts. King IV reforms, however, do not demonstrate a moderating effect. Originality/value By shedding light on the nuanced effects of board diversity and regulatory frameworks, the study contributes to the literature on corporate governance and sustainability in developing economies, highlighting the importance of tailored governance mechanisms in advancing sustainability agendas.
Erin et al. (Tue,) studied this question.