Raising the bar? Top management teams, gender diversity, and environmental sustainability

Abstract

This study examines how female board directors and top managers may influence an organization’s decision to adopt ISO 14001. Upper Echelon Theory (UET) argues that an organization’s outcomes are based on the decisions made by its directors and managers, who however are influenced by their background characteristics. Therefore, it is crucial to assess how gender diverse boards and top management teams affect the likelihood of sustainability initiatives such as the ISO 14001 certificate being adopted. According to data gathered from Kenyan companies, having women on boards increases the probability of ISO 14001 adoption. On the contrary, there was weak correlation with having women in the top management team. Establishing gender diversity also supports adopting global sustainability initiatives, such as ISO 14001, as a strategy to enhance environmental performance of a firm. This study advances the CSR literature on establishing gender diversity in the workplace as a way to improve corporate performance.