Flexible gender targets with mandatory reporting: introducing a governance innovation for accountability, public values and social sustainability

Purpose Accountability and equity regarding female representation in executive positions are crucial public values for municipal-owned corporations (MOCs). Flexible gender targets (FGTs) with mandatory reporting below executive director levels are a promising governance innovation for promoting gender equity. This study explores how public corporate governance codes (PCGCs), a self-regulation concept for political control, influence compliance with mandatory FGT reporting by law. Design/methodology/approach Using random-effects logistic panel regression, this study analyzes 673 annual statements of 113 German MOCs disclosed between 2015 and 2020, identifying the effects of PCGCs on FGT reporting. Findings The study shows that mandatory reporting requirements have increased MOCs’ accountability on FGTs. However, from an overall perspective, the adoption does not meet policymakers’ expectations, with 40.3% failing to comply with mandatory reporting requirements. PCGCs with a specific rule or cross-reference to legal FGT requirements enhance accountability regarding FGTs. This provides empirical support for employing a combination of mandatory regulation and self-regulation in some policy fields. Originality/value This study introduces FGTs with mandatory reporting as a promising governance innovation striving to initiate a discussion in public management research and the sustainability reporting debate. It innovatively responds to calls on the complementary use of mandatory regulation and self-regulation, showing considerable effects on accountability. Furthermore, the study introduces, theorizes and tests PCGCs as concept for control publicness and empirically illuminates their reinforcing effects.