The Impact of Women’s Empowerment on the Corporate ESG Disclosure

What is it about?

A fresh perspective on gender diversity in the corporate world emerges from an impactful research article written by Dr Juan Dempere and Dr Shahira Abdalla titled “The Impact of Women’s Empowerment on the Corporate Environmental, Social, and Governance Disclosure”. The researchers investigated the connection between gender diversity and transparency in corporate Environmental, Social, and Governance disclosures. ESG disclosures show how much a company cares about its impact on the environment, its social responsibility, and how it is governed. These factors are increasingly important for investors and stakeholders looking for ethical, responsible businesses. Utilizing the Resource-Based View, the researchers delve into how strategic resources, such as a diverse team, can offer a company a competitive advantage. They find that companies that embrace gender diversity in their executive teams and boards are likely to benefit from a broader range of insights, leading to improved ESG disclosure.

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Photo by Karsten Würth on Unsplash

Photo by Karsten Würth on Unsplash

Why is it important?

This paper makes a unique contribution to the literature by being the first to analyze the effects of women’s empowerment on ESG disclosure using a globally representative sample. However, the research can be further extended by focusing on the specifics of the research question. For instance, further research could be conducted to determine the effects of women’s empowerment on ESG disclosure in different regions. It could also focus on the differences in impact between public and private companies. Research could also determine the effects of specific policies or initiatives to increase gender diversity on ESG disclosure. These are only a few of the many possible research extensions that could be conducted to explore further the impact of women’s empowerment on corporate ESG disclosure.

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