Board of directors’ effectiveness and sustainable performance: The triple bottom line

Abstract

Drawing on the stakeholder and legitimacy theories, this paper examines the effect of corporate governance elements, specifically the board of directors, on the Triple Bottom Line (TBL) sustainable performance. Using a Southern Mediterranean sample of Tunisian companies, the study investigates whether the presence of female directors, board independence, board size, frequency of board meetings and CEO duality affect the three pillars of sustainable performance (economic, social and environmental). The authors use confirmatory factor analysis and covariance-based structural equation modelling to assess both measurement and structural models. Findings reveal evidence on which dimension of sustainable performance might be more affected by corporate board attributes. These findings have both theoretical and practical implications for academia, policy-makers, and corporate managers in this region.