Sadi Boğaç Kanadlı, Asma Alawadi, Nada Kakabadse and Pingying Zhang
Using the attention-based view, this paper aims to examine whether and how board composition might influence the allocation of board attention to corporate sustainability.
Abstract
Purpose
Using the attention-based view, this paper aims to examine whether and how board composition might influence the allocation of board attention to corporate sustainability.
Design/methodology/approach
This is a conceptual paper that uses a theoretical perspective pointing to the importance of generating a board composition that might benefit both business case framing and paradoxical framing, a typology introduced in managerial cognition literature to explain managerial decision-making.
Findings
The conclusions emerging from the reviewed literature suggest that boards that have realized an independence of perspective focus on shareholder profit maximization at the expense of considerations of corporate sustainability. It emerges that women directors who have adopted paradoxical framing can enable boards to consider not only economic but also environmental and social issues of sustainability during board decision-making. Further, it is noted that the effect of gender diversity on allocation of board attention to corporate sustainability is contingent upon contextual (board openness) and structural (chairperson leadership) factors that facilitate social interactions inside boardrooms.
Originality/value
By considering alternative cognitive frames as well as social interactions, the propositions contribute to a better understanding of the allocation of board attention regarding ambiguous sustainability issues.
Details
Keywords
Asma Alawadi, Nada Kakabadse, Nadeem Khan and Virginia Bodolica
This study empirically examines the impact of board diversity on environmental, social and governance (ESG) outcomes in organizations from the United Arab Emirates (UAE). The…
Abstract
Purpose
This study empirically examines the impact of board diversity on environmental, social and governance (ESG) outcomes in organizations from the United Arab Emirates (UAE). The study aims to extend prior literature by covering the impacts of the institutional context on board diversity and ESG outcomes.
Design/methodology/approach
Using a thematic analysis of interviews with 42 UAE board members, this research uncovers the effects of institutional context on ESG outcomes. The study focuses on the impact of culture, the influence of regulatory bodies and the relationship between critical board diversity traits and ESG.
Findings
Three major themes emerged from the data: the impact of institutional context and culture, the impact of regulatory bodies and critical board diversity traits’ relationship with ESG. The findings indicate that the institution’s cultural and regulatory context impacts board diversity and ESG. The findings also demonstrate that the board’s functional diversity (educational and occupational diversity) and age diversity impact ESG outcomes.
Originality/value
This research contributes to resource dependence theory by indicating the specific resources diverse directors bring to a corporate board. The study also highlights how institutional context dictates the types of resources directors seek for effective ESG implementation, providing a novel insight into board diversity’s role in ESG performance.