Gender Role and ESG Controversies

The Environmental, Social, and Governance (ESG) components can contribute to a company’s success and market returns. Each of these three pillars has multiple dimensions. We examine the impact of female leadership, which falls under the social pillar, on ESG workplace controversies in a sample of S&P 500 firms. These firms are then categorized as Shariah or non-Shariah compliant. Both types of firms differ in terms of ESG. The findings suggest that different corporate governance variables can either have a positive, negative, or no impact on controversies. Depending on the type of firm, whether Shariah or non-Shariah compliant, women bring some positive contribution to the workplace, whether that is workforce related or not. The results support the other research studies showing that having women involved in the leadership of a firm brings non-financial and financial benefits, though a few works suggest no difference if there are women or men involved in the firm’s leadership. A brief discussion of COVID-19 is also mentioned in this research, as to how it has changed leadership and the workplace.