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Business Strategy and the Environment· 2026Q1

Board Cultural Diversity and Corporate Sustainability Performance: Evidence From Hospitality and Tourism Firms

Khaoula Omhand, Ade Oriade, Aso Abdullah

Short summary

Increased board cultural diversity is linked to better corporate sustainability performance (CSP) in hospitality and tourism firms, with a 14% improvement observed in firms with diverse boards compared to less diverse ones.

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Key points

  • Board cultural diversity is positively associated with corporate sustainability performance (CSP) in hospitality and tourism.
  • Other positive factors include board gender diversity and the presence of a sustainability committee.
  • CEO duality and larger board sizes showed a negative association with CSP.
  • Findings were robust across various analytical methods, including lagged specifications and firm fixed effects.

AI-generated from the title and abstract; the full text is not read.

Abstract

ABSTRACT This paper examines whether board cultural diversity is associated with corporate sustainability performance (CSP) in the hospitality and tourism sector. Drawing on upper echelons theory and resource dependence theory, the analysis uses LSEG ESG data for 282 publicly listed firms across 49 countries, covering 1406 firm‐year observations from 2018 to 2023. The results show that board cultural diversity, board gender diversity, board independence, and sustainability committee presence are positively associated with CSP. By contrast, CEO duality and board size are negatively associated with sustainability performance. Additional analyses using lagged specifications, firm fixed effects, country‐group regressions, region‐year fixed effects and environmental and social pillar scores provide further evidence of the stability of the reported associations. The paper contributes to sustainability governance research by showing that board cultural diversity remains relevant when examined alongside established governance characteristics. The findings also offer sector‐specific evidence from hospitality and tourism, where sustainability performance is closely linked to stakeholder relationships, reputation and board‐level oversight.

The authors' abstract, as published at the source. Business Strategy and the Environment, 2026 · DOI ↗

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Field: Strategy and Management

Strategy and ManagementBusiness, Management and Accounting