Social sustainability and financial performance of multilatinas: the moderating role of board independence and the sustainability committee

Abstract

Increasing demands are being placed on organisations to promote the economic, social and environmental welfare of the societies within which they operate. The social dimension of sustainability is an issue of current research interest, especially with respect to firms in emerging markets. In contributing to the welfare and progress of the societies in which they operate, these firms may also enhance the motivation and participation of their human resources. In this study, the generalised method of moments is applied to data from 115 multilatinas in Mexico and South America, for the period 2015–2022, to consider whether a firm’s adoption of internal and external social sustainability practices improves financial performance. In addition, we examine whether board independence and sustainability committees play a significant moderating role in equipping multilatinas to adopt social sustainability practices that enhance financial performance.