CORPORATE SUSTAINABILITY THE IMPACT OF CORPORATE LEADERSHIP GENDER

CORPORATE SUSTAINABILITY: THE IMPACT OF CORPORATE LEADERSHIP GENDER ON YEAR OVER YEAR PERFORMANCE Dr. Jennoa R. Graham, Ph. D. July 3, 2019 In. SITE 2019 AN INFORMING SCIENCE INSTITUTE CONFERENCE June 30 - July 5, 2019 Jerusalem,

Today’s Overview 1 • Background & Framework 2 • Research & Results 3 • Contributions & Implications In. SITE 2019 AN INFORMING SCIENCE INSTITUTE CONFERENCE June 30 - July 5, 2019 Jerusalem,

Overview of Sustainability • Social Responsibility • ESG – Environmental – Social – Governance • Holistic View – Financial – Stakeholder Value (Holistic Concentric Circles Model) In. SITE 2019 AN INFORMING SCIENCE INSTITUTE CONFERENCE June 30 - July 5, 2019 Jerusalem,

RESEARCH &RESULTS In. SITE 2019 AN INFORMING SCIENCE INSTITUTE CONFERENCE June 30 - July 5, 2019 Jerusalem,

C-Suite CEO Board CORPORATE SUSTAINABILITY In. SITE 2019 AN INFORMING SCIENCE INSTITUTE CONFERENCE June 30 - July 5, 2019 Jerusalem,

Gender Gap (2014 – 2017) # of CEO by Gender 100 90 80 70 60 50 40 30 20 10 - # of C-Suite by Gender 30, 000 25, 000 20, 000 15, 000 10, 000 5, 000 2014 2015 2016 2017 2014 2015 Female 2016 - 2017 2014 Male 2015 2016 2017 2014 Female All Industries 2015 2016 2017 Male All Industries # of Board Members by Gender 1, 000 900 800 700 600 500 400 300 200 100 - 2014 2015 2016 2017 2014 Female 2015 2016 2017 Male All Industries AN INFORMING SCIENCE INSTITUTE CONFERENCE June 30 - July 5, 2019 In. SITE 2019 Jerusalem,

Upper Echelon & Social Role Theories What is Leadership Gender Impact on Year Over Year Corporate Sustainability? In. SITE 2019 AN INFORMING SCIENCE INSTITUTE CONFERENCE June 30 - July 5, 2019 Jerusalem,

Results Hypothesis Impact Holistic (%) 1 All CEO Genders + 84 2 Female vs Male CEO F>M 67 3 Female C-Suite + 56 4 Female vs Male C-Suite F>M 56 5 Female Board + 53 6 Female vs Male Board F>M 53 7 Firm Performance + 97 Results Friedman Test Wilcoxon Mann-Whitney U Kruskal-Wallis Correlations Holistic View* In. SITE 2019 AN INFORMING SCIENCE INSTITUTE CONFERENCE June 30 - July 5, 2019 Jerusalem,

CONTRIBUTIONS &IMPLICATIONS In. SITE 2019 AN INFORMING SCIENCE INSTITUTE CONFERENCE June 30 - July 5, 2019 Jerusalem,

Scholarly Contributions • Social Responsibility vs Sustainability • Holistic Concentric Circles Model • Statistical Contribution to Literature • 2018 California Legislation (SB-826) In. SITE 2019 AN INFORMING SCIENCE INSTITUTE CONFERENCE June 30 - July 5, 2019 Jerusalem,

Managerial Implications • Female leaders are more effective – Building Trust – Enforcing Responsible Interactions – Promoting Generational Longevity • Communal Behaviors/Engagement • Competitive Advantage for Women In. SITE 2019 AN INFORMING SCIENCE INSTITUTE CONFERENCE June 30 - July 5, 2019 Jerusalem,

Summary • Women Drive Sustainability – All performance metrics – Holistic analysis successful • Literature and Research Support – Over 20 years of data – Current legislation • Call To Action – Increase effective female leaders – More gender sustainability studies In. SITE 2019 AN INFORMING SCIENCE INSTITUTE CONFERENCE June 30 - July 5, 2019 Jerusalem,

Resources • Graham, J. R. (2019). Corporate sustainability: The impact of corporate leadership gender on year over year performance. Proceedings of the Informing Science and Information Technology Education Conference, Jerusalem, Israel, pp. 149 -183. Santa Rosa, CA: Informing Science Institute. https: //doi. org/10. 28945/4213 • Bear, S. , Rahman, N. , & Post, C. (2010). The impact of board diversity and gender composition on corporate social responsibility and firm reputation. Journal of Business Ethics, 97, 207– 221 • Glick, M. B. (2011). The Role of Chief Executive Officer. (Doctor of Philosophy Dissertation), Colorado State University, Fort Collins, Colorado. (UMI 3454601) • Hambrick, D. C. , & Mason, P. A. (1984). Upper Echelons: The Organization as a Reflection of Its Top Managers. The Academy of Management Review, 9(2), 193 -206. • Hernandez Bark, A. S. , Escartín, J. , Schuh, S. C. , & van Dick, R. (2015). Who Leads More and Why? A Mediation Model from Gender to Leadership Role Occupancy. Journal of Business Ethics, 139(3), 473 -483. doi: 10. 1007/s 10551 -015 -2642 -0 In. SITE 2019 AN INFORMING SCIENCE INSTITUTE CONFERENCE June 30 - July 5, 2019 Jerusalem,

QUESTIONS? In. SITE 2019 AN INFORMING SCIENCE INSTITUTE CONFERENCE June 30 - July 5, 2019 Jerusalem,

LITERTURE SUPPORT • Females place higher value on ethical responsibilities and are more open to CSR initiatives than males (Haski-Leventhal, Pournader, and Mc. Kinnon, 2015). • Female leaders positively influence CSR by enhancing corporation reputation, offering increased sensitivity to issues, and engaging in participative decision making (Rao & Tilt, 2015). • As the number of female board of directors increases, communication barriers decrease and CSR rates increase; community support, positive stakeholder exchanges and good governance (Bear, Rahman, and Post, 2010). • Senator Kirsten Gillibrand of New York argues “Women are more focused on finding common ground and collaborating” (Houston, 2014). In. SITE 2019 AN INFORMING SCIENCE INSTITUTE CONFERENCE June 30 - July 5, 2019 Jerusalem,

THEORY – Leadership Experience • Upper Echelons Theory. Corporate performance is a reflection of the personal perceptions of executive leadership (Hambrick and Mason 1984) – Gender stereotypes mold personal perceptions – Perceptions influence degree of value creation • • Stakeholders Investors Community welfare and Actions producing corporate performance outcomes (Nielsen 2009; Jeong and Harrison 2017) In. SITE 2019 AN INFORMING SCIENCE INSTITUTE CONFERENCE June 30 - July 5, 2019 Jerusalem,

THEORY – Gender Taught • Social Role Theory. Societal beliefs define acceptable gender roles and assign value through the characteristics of the accepted roles (Koenig and Eagly 2014). – Men conquer vs. Women negotiate – Communal behaviors are acceptable in female leadership roles and positively impact • Board performance (Nielsen and Huse 2010), • CSR strategy (Huse, Nielsen et al. 2009), and • Stakeholder needs (Bear, Rahman et al. 2010). CSR = Corporate Social Responsibility; predecessor of sustainability AN INFORMING SCIENCE INSTITUTE CONFERENCE June 30 - July 5, 2019 In. SITE 2019 Jerusalem,

Motivations • Provide a concise literature review on the history, purpose and value of sustainability. • Contribute to the historical literature on leadership gender, corporate sustainability, and business ethics. • Introduce a holistic view of corporate sustainability. • Identify sustainability as an area of competitive advantage for women leaders • Begin a new trend in global studies focusing on female leadership and corporate sustainability performance over time. In. SITE 2019 AN INFORMING SCIENCE INSTITUTE CONFERENCE June 30 - July 5, 2019 Jerusalem,

Mathiassen Framework P Underrepresentation of women in global leadership for more than 20 years running A Corporate sustainability – women leverage gender strengths F Upper Echelon Theory (Experience); Gender Role Theory (Taught); Holistic Concentric Circles Model M Quantitative Nonparametric Testing of Corporate Sustainability Assessment participants within the S&P 500 Dow Jones Sustainability North American Composite Index as reported in Bloomberg C Sustainability (S), gender studies (G), and business ethics (E) RQ What is the impact of corporate leadership gender (CEO, C-suite, and Board) on Yo. Y sustainability in North American organizations? In. SITE 2019 AN INFORMING SCIENCE INSTITUTE CONFERENCE June 30 - July 5, 2019 Jerusalem,