Introdução
As the adoption of SDGs originates within the company, the board of directors sits at the top of the organizational hierarchy and is responsible for guiding the company's strategic direction. While research highlights factors like industry sector, financial performance, firm size, and sustainability committees as drivers of Sustainable Development Goals (SDGs) adoption, fewer studies explore the board's direct impact.
Problema de Pesquisa e Objetivo
In this vein, the research question is: What are the antecedents and outcomes of SDG adoption by companies? The purpose of this article is to examine the antecedents and outcomes of Sustainable Development Goals adoption.
Fundamentação Teórica
García Martín and Herrero (2020) affirm that certain board characteristics can determine the implementation of sustainable strategies, such as the adoption of SDGs. Also, as stated by Lin-Hi and Blumberg (2018), CSR practices, in the sense of "doing good" (voluntary corporate engagement for the well-being of stakeholders and society), allow companies to positively exceed stakeholder expectations, which, according to the expectation violation theory, enhances corporate reputation.
Metodologia
This study examined the adoption of SDGs by 116 South African companies, focusing on board composition—specifically board size, diversity, skills, tenure, and independence—as antecedents, and corporate reputation as an outcome. To analyze the data, we employed a mixed-methods approach, utilizing both multivariate analysis and fuzzy-set Qualitative Comparative Analysis (fsQCA).
Análise e Discussão dos Resultados
The findings demonstrate that three key board characteristics (gender diversity, board skills, and board independence) significantly influence the adoption of the SDGs. In addition to identifying key drivers, we found that adopting the SDGs enhances companies' social reputation—a particularly significant finding for companies in emerging economies. The findings have implications for both Agency Theory and Expectation Violation Theory. This study focuses on the South African context, contributing to the SDG debate by examining a country that has been underexplored in the literature.
Considerações Finais
This study has limitations that should be considered when interpreting the findings. For instance, the focus on South African companies may not fully reflect the dynamics in other regions with different regulatory, cultural, or economic environments. Future research could explore additional board characteristics, such as directors' nationality and ethnicity, CEO duality, and CEO narcissism, to further understand their impact on SDG adoption.
Referências
García Martín, C. J., & Herrero, B. (2020). Do board characteristics affect environmental performance? A study of EU firms. Corporate Social Responsibility and Environmental Management, 27(1), 74–94. https://doi.org/10.1002/csr.1775; Lin-Hi, N., & Blumberg, I. (2018). The Link Between (Not) Practicing CSR and Corporate Reputation: Psychological Foundations and Managerial Implications. Journal of Business Ethics, 150(1), 185–198. https://doi.org/10.1007/s10551-016-3164-0