The intersection of gender diversity and societal norms: How violence against women moderates ESG performance

Abstract

This study examines the impact of gender diversity on ESG performance through the lens of violence against women (VAW). Through the application of social identity theory and institutional theory, the study posits that high levels of VAW limit the role of women on corporate boards, hindering the positive impact of gender diversity on ESG performance. The research develops a novel Violence Against Women Corporate Impact Index (VAW-CII), utilizing data from global indicators to quantitatively assess the prevalence of VAW and its influence on corporate governance and ESG outcomes. The study sample covers the period from 2013 to 2021 and includes firms from 16 countries, providing a robust dataset for examining the relationship between gender diversity, VAW, and ESG performance. The results show that higher levels of VAW weaken the positive effects of gender diversity on ESG performance. This suggests that societal marginalization of women, as reflected in VAW, undermines their ability to contribute effectively to corporate governance and ESG strategies. Business leaders and policymakers should recognize the impact of societal violence on gender diversity and ESG performance, implementing reforms that address both internal and external gender inequalities to promote more inclusive and effective corporate governance. The study highlights the importance of addressing broader societal issues, such as VAW, to foster gender equality in corporate leadership and improve ESG performance. This research offers a unique contribution by linking societal violence against women with corporate governance, providing a novel perspective on how external gender-related societal pressures shape organizational behavior and ESG outcomes.