Abstract

Despite increasing scholarly research on the dynamic causal link between environmental, social, and governance (ESG) drive and female corporate leadership, limited knowledge exists regarding the African context. This study decreases this research dearth and uncovers bidirectional causality within African firms between 2010 and 2022. Empirical results indicate that female leadership significantly influences future ESG ratings, and ESG implementation negatively affects female leadership. Ceteris paribus, managerial myopia will likely maintain this negative outcome. These findings lead to managerial and policy implications aligned with the United Nations’ Sustainable Development Goals and the African Union Agenda 2063.

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