Board structure policy, board diversity and social sustainability in the logistics and transportation sector

Abstract

PurposeThis study aims to examine the roles of board gender and cultural diversities in driving social sustainability practices through the moderating effect of board structure policies in the logistics and transportation sector.Design/methodology/approachThe authors conducted fixed-effects regression with 2005–2019 data from Thomson Reuters Eikon.FindingsThe results showed that female directors are significant predictors of social sustainability across the four dimensions of human rights, workforce, product responsibility and community development. Additionally, directors with different cultural backgrounds (but not the workforce) are significant determinants of community development, human rights and product responsibility. Furthermore, although board structure policies positively moderate the relationship between board gender diversity and social sustainability, they fail to moderate the relationship between board cultural diversity and social sustainability.Originality/valueThe findings have crucial implications for the logistics and transportation sector's social sustainability and may help the sector align with employees' and society's expectations. The incorporation of board gender and cultural diversities into the research design was a response to calls by the European Union (EU) and the United Nations (UN) to address board configuration and stakeholders' concerns.