Board of directors and sustainability performance in the aerospace industry

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Abstact

This study aims to investigate the role of the board of directors in promoting sustainability in the aerospace industry. Aerospace companies are facing substantial challenges stemming from sustainability-related issues like climate change and environmental regulations, underscoring the urgency of prioritizing sustainability within the corporate agenda. This study adds valuable insights to the ongoing discourse regarding the impact of the board of directors on corporate sustainability performance. By examining a sample comprising firms within the aerospace industry listed on the STOXX Europe 600 index from 2015 to 2022, it aims to elucidate the impact of various board characteristics on their sustainability results. Overall, the insights of this study underscore the critical role of board attributes in shaping Environmental, Social, and Governance (ESG) performance outcomes. By promoting gender diversity, fostering independent oversight, and mitigating Chief Executive Officer (CEO) duality, aerospace organizations can effectively enhance their ESG performance and better position themselves to fulfill their corporate social responsibilities.

Keywords: Corporate Governance, Board of Directors, Sustainability Performance, CSR, ESG, Aerospace

JEL Classification: G34, M14

Received: 06.05.2024
Accepted: 22.05.2024

How to cite: Arduino, F. R. (2024). Board of directors and sustainability performance in the aerospace industry. In Ž. Stankevičiūtė, A. Kostyuk, M. Venuti, & P. Ulrich (Eds.), Corporate governance: Research and advanced practices (pp. 32–38). Virtus Interpress. https://doi.org/10.22495/cgrapp5