The Influence of Women in Boardrooms on the Relationship Between Control of Corruption and Sustainability in an International Study

Abstract This paper examines the interplay between country-level control of corruption, female board representation, and corporate sustainability performance using regression analysis on a global sample of over 36,000 firms. The results indicate that control of corruption and increased board diversity have significant positive direct effects on overall environmental, social, and governance (ESG) scores, with their interaction effect being highly significant, suggesting a substantial combined influence. Additionally, analyses by sustainable development goal (SDG) alignment demonstrate that control of corruption improves ESG performance irrespective of SDG level, while board diversity benefits both high and low SDG groups. Regional analyses further reveal varied effects of these factors across America, Europe, and Asia. These findings underscore the significance of governance quality and female representation in enhancing corporate sustainability worldwide, emphasizing the potential for firms to improve ESG performance through prioritizing anti-corruption efforts and promoting board diversity. This international study contributes valuable insights into the relationship between country-level governance, corporate board composition, and sustainability outcomes across diverse contexts, highlighting the importance of tailoring sustainability policies and practices based on regional and developmental nuances.