Nexus among SDG 5 and sustainability performance

Dr. Sanober Shaheen; Jawad Abdul Ghaffar; Hassam Durrani

doi:10.33897/fujbe.v9i2.944

Dr. Sanober Shaheen Assistant Professor, Hamdard University, Islamabad
Jawad Abdul Ghaffar Assistant Professor, Hamdard University, Islamabad
Hassam Durrani PhD Scholar, Management Department University Lincoln University College, Malaysia

DOI: https://doi.org/10.33897/fujbe.v9i2.944

Keywords: SDG-5: Financial sustainability: social sustainability: environmental sustainability: manufacturing companies.

Abstract

Incorporation of SDG 5 (Representation of women) on the board of directors is beneficial for corporation`s longterm
value creation and sustainable expansion. This study examines how the inclusion of SDG 5 on the board
affects sustainability (financial, social, and environmental). This study tries to define SDG 5's role and its
implications for sustainability performance. This study is based on three theories: the Triple Bottom Line, which
says that businesses should prioritize profit, the planet, and people; the agency theory, which says that directors
should align stakeholders' interests with sustainability practices; and the gender socialization theory, which
supports a gender difference perspective. The research sample consists of 8 years data span from 87 Industrial
firms with Pakistan Stock Exchange listings. The study used dynamic GMM analysis for estimations. The results
demonstrate that the presence of more women on boards of directors improves the sustainability of the social and
environmental spheres, whereas having more women on the board of directors makes the company's finances less
sustainable. According to this study, SDG 5 should encourage diversity and inclusion on the board of
manufacturing organizations. These companies should also focus on sustainable growth and merit-based board
member hiring. Additionally, this research has positive implications for regulators and policymakers who support
sustainable organizations.