Giving Voice to Silence: The Role of Democracy in the Relationship Between Board Structure and <scp>ESG</scp> Performance in Africa

ABSTRACT The purpose of this paper is to examine the moderating role of democracy in the relationship between board structure and ESG performance of African companies. To this end, we investigated the ESG performance of 208 companies based in 10 African countries for a period of 5 years (2017–2021). Based on previous research that identified important characteristics of the board structure in East Africa, we defined the following board structure: gender diversity, board size, and experience of board members. We analyzed the data combining a symmetric approach (panel data regression) and an asymmetric approach (fsQCA). We found that gender diversity and smaller boards drive better ESG performance. Our findings also indicate that democracy moderates the relationship between board structure and ESG performance. Therefore, in African countries that have more social participation, rights, inclusion, and equity, companies tend to have a higher ESG. In this vein, by giving citizens a voice, African governments are indirectly promoting ESG performance. Results offer significant theoretical and practical contributions for emerging markets as a whole.