Sustainable Development Goals and Board Structure: Connecting the Dots in The Energy Sector

Abstract

Purpose: Framed on the Resource-Based View, the objective of this research was to investigate the effect of the structure of the board of directors on the engagement of firms with the sustainable development goals (SDG). Theoretical framework: Resource-Based View (RBV) and Sustainable development goals. Method: 100 firms in the energy sector based in the main emerging economies of the world were analyzed. To test the proposed hypotheses, an analysis of panel data and logistic regression model was performed. Result and Conclusion: The board structure in emerging countries plays a key role for firms to achieve greater engagement with the SDGs. The board size has a negative effect on SDGs, while the presence of social responsibility and audit committees has a positive effect on firms’ engagement with the SDGs. Research implications: It is necessary to consider committees as key configurations of the board structure, even if these are not mandatory in terms of regulation. Establishing, strengthening and encouraging the maintenance of committees focused on sustainability practices is to contribute to promising organizational results and to the reduction of negative externalities. Originality: In addition to confirming the Resource-Based View approach, our study examines the energy sector, which is one of the main agendas for discussions on climate change at a global level. We address the understanding of SDG in business, a field of research still in an embryonic stage. Although several studies have analyzed a variety of contexts together, we focused on emerging economies, bringing specific evidence to the sample countries.