The effects of diversity and inclusion on ESG performance: a comparison between Islamic and conventional banks
The effects of diversity and inclusion on ESG performance: a comparison between Islamic and conventional banks
This study analyzes the effects of diversity, inclusion, and people development (DIP) on environmental, social, and governance (ESG) performance in Islamic and conventional banks from 2015 to 2022. Using data from Refinitiv database, it reveals that a more diverse and inclusive workplace is found to have better overall ESG performance and both pillars (environmental and social performance). This positive and significant association is more pronounced in Islamic banks than in its conventional counterpart. However, no significant effect was found on governance performance. These findings are robust to several sensitivity analyses based on some alternative measures. To the best of the authors’ knowledge, this is the first empirical study investigating the effects of diversity, inclusion, and people development on ESG performance, using multi-country data on Islamic and conventional banks.
Conventional banks, Diversity, ESG, Inclusion, Islamic banks, People development
1101-1110
Tumewang, Yunice Karina
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Ayunda, Kemala Putri
5f321f7d-f6ea-4caa-aec0-61a8789ddcaa
Azzahra, Maudi Rahmah
057d52ae-c915-441d-b320-df1ddb563b76
Hassan, M. Kabir
d9e6e6ac-30b4-4cbc-a1ba-107f5e934ed7
26 November 2024
Tumewang, Yunice Karina
b0268d85-83f6-401b-8262-fd066abf5c2e
Ayunda, Kemala Putri
5f321f7d-f6ea-4caa-aec0-61a8789ddcaa
Azzahra, Maudi Rahmah
057d52ae-c915-441d-b320-df1ddb563b76
Hassan, M. Kabir
d9e6e6ac-30b4-4cbc-a1ba-107f5e934ed7
Tumewang, Yunice Karina, Ayunda, Kemala Putri, Azzahra, Maudi Rahmah and Hassan, M. Kabir
(2024)
The effects of diversity and inclusion on ESG performance: a comparison between Islamic and conventional banks.
Borsa Istanbul Review, 24 (6), .
(doi:10.1016/j.bir.2024.10.001).
Abstract
This study analyzes the effects of diversity, inclusion, and people development (DIP) on environmental, social, and governance (ESG) performance in Islamic and conventional banks from 2015 to 2022. Using data from Refinitiv database, it reveals that a more diverse and inclusive workplace is found to have better overall ESG performance and both pillars (environmental and social performance). This positive and significant association is more pronounced in Islamic banks than in its conventional counterpart. However, no significant effect was found on governance performance. These findings are robust to several sensitivity analyses based on some alternative measures. To the best of the authors’ knowledge, this is the first empirical study investigating the effects of diversity, inclusion, and people development on ESG performance, using multi-country data on Islamic and conventional banks.
Text
1-s2.0-S2214845024001340-main
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Accepted/In Press date: 14 October 2024
e-pub ahead of print date: 19 November 2024
Published date: 26 November 2024
Keywords:
Conventional banks, Diversity, ESG, Inclusion, Islamic banks, People development
Identifiers
Local EPrints ID: 496814
URI: http://eprints.soton.ac.uk/id/eprint/496814
ISSN: 2214-8450
PURE UUID: 9533b6fc-a4fc-42c4-a1e3-89a838ee4821
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Date deposited: 08 Jan 2025 07:10
Last modified: 21 Aug 2025 02:51
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Contributors
Author:
Yunice Karina Tumewang
Author:
Kemala Putri Ayunda
Author:
Maudi Rahmah Azzahra
Author:
M. Kabir Hassan
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