69th Day Of Lockdown

Maharashtra65168280812197 Tamil Nadu2024611313157 Delhi173877846398 Gujarat1635692321007 Rajasthan83654855184 Madhya Pradesh78914444343 Uttar Pradesh77014651213 West Bengal48131775302 Andhra Pradesh3461228960 Bihar3359120915 Karnataka292299749 Telangana2499141277 Jammu and Kashmir234190828 Punjab2197194942 Odisha17239779 Haryana172194019 Kerala120957510 Assam9361044 Uttarakhand493794 Jharkhand4621914 Chhatisgarh4471021 Chandigarh2891994 Tripura2711720 Himachal Pradesh223634 Goa70420 Manipur6060 Puducherry57230 Nagaland3600 Meghalaya27121 Arunachal Pradesh310 Mizoram110 Sikkim100
Lifestyle Health and Wellbeing 02 Sep 2018 Gender-diverse board ...

Gender-diverse boards better at protecting work environment: Study

ANI
Published Sep 2, 2018, 3:07 pm IST
Updated Sep 2, 2018, 3:07 pm IST
Companies with greater gender diversity on their boards experienced significantly fewer environmental lawsuits.
Gender-diverse boards better at protecting work environment. (Photo: Pixabay)
 Gender-diverse boards better at protecting work environment. (Photo: Pixabay)

Washington: Turns out, organizations with a more balanced mix of men and women on their board of directors are better at protecting the environment and less likely to be sued for environmental law violations, a new study has revealed.

The study examined 1,893 environmental lawsuits raised against the 'Standard and Poor's' 1,500 firms in the United States between 2000 and 2015 and identified direct links between gender diversity and corporate environmental violations.

 

The study revealed that companies with greater gender diversity on their boards experienced significantly fewer environmental lawsuits, indicating that female directors contribute to reducing corporate environmental litigation. For example, for every female added to a board of directors in the sample, the average lawsuit exposure is reduced by 1.5 percent which on an average environmental lawsuit (USD 204 million) could equate to a saving of USD 3.1 million.

The study's author, Dr Chelsea Liu said the explanation for the findings lies in gender socialisation and diversity theories.

"Gender diversity is what's important - female representation on boards is most important where the CEO is male, and less important if the CEO is female," said Dr Liu.

This can be attributed to diversity theory, which says that a group of people from more diverse backgrounds like gender race etc tend to make better collective decisions because they canvas a wider range of perspectives.

"Having a range of perspectives can result in improved corporate environmental policy, which in turn can reduce exposure to environmental lawsuits," Dr Liu added.

"Previous research also found that female executives are less overconfident and more willing to seek expert advice than their male counterparts," she said.

Dr Liu said that with many countries including Australia debating whether to mandate boardroom gender quotas, the research provides timely evidence to a potential 'business-case' justification for increasing corporate gender diversity.

"With corporate environmental responsibility becoming a more important social issue, these findings can have significant implications for policymakers, investors and managers. Environmental violations not only have a significant impact on societies, but they can also cause devastating losses of shareholder value," said Dr Liu.

The study appeared in the Journal of Corporate Finance.

...




ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT