Empowering performance: gender diversity, corporate social responsibility and sustainable outcomes

Purpose This study aims to examine the impact of female directors on sustainability performance in Pakistan’s major large-scale manufacturing firms while considering the moderating role of corporate social responsibility (CSR). Design/methodology/approach Secondary data from annual reports of large-scale manufacturing firms in Pakistan have been collected and analyzed using panel data, with regression and logit analysis conducted for six years. Findings The study reveals that gender diversity does not significantly affect the financial performance of Pakistani firms but does affect their environmental and social performance. Furthermore, CSR does not moderate the gender diversity and sustainability performance relationship. Control variables, i.e. corporate size and liquidity, affect financial and environmental performance, while liquidity does not significantly impact social performance. Practical implications These findings have implications for policymakers and corporate executives, emphasizing the importance of promoting gender diversity and integrating CSR practices to enhance social and environmental outcomes. Through improved corporate sustainability efforts, the study has the potential to positively affect the quality of life for various stakeholders, including employees, communities and the environment. Originality/value This study offers a unique model by investigating the moderating role of CSR in the relationship between gender diversity and sustainability performance, particularly in the context of Pakistan. Unlike prior research focusing mainly on financial outcomes, it includes environmental and social dimensions. The study introduces a novel model exploring CSR’s moderating role between gender diversity and sustainability. Using six years of panel data and both regression and logit analyses, it provides robust insights into these variables in an emerging market.