Assessing the Influence of Board Characteristics on SDG Disclosure: Evidence from Italian Benefit Corporations.

The 2030 Agenda, adopted in 2015 by 193 nations under the United Nations, signifies a pivotal advancement towards sustainability. It delineates 17 Sustainable Development Goals (SDGs) and 169 associated targets, aimed at fostering environmental, economic, social, and institutional progress by the year 2030. Given the significant role that companies play in contributing to these objectives, there has been a considerable surge in stakeholder interest in their conduct over recent years. Consequently, integrating the SDGs into corporate reporting practices has become paramount for companies, with the aim of achieving consensus and ensuring long-term success. Italian Benefit Corporations (B-Corps), which prioritize profit while also recognizing sustainability as mandated by their statute, are integral to this evolving landscape. Essential to these companies and their communication with stakeholders are the Benefit Impact Reports (BIRs), which they are required to include alongside their financial statements. This research aims to scrutinize the extent of SDG disclosure within BIRs among Italian B-Corps. Additionally, it seeks to explore the influence of board characteristics—such as size,nationality, gender diversity, and age—on the level of disclosure. By conducting content analysis on BIRs and examining a sample of 83 Italian Benefit Corporations, this study tests four hypotheses grounded in Agency theory using cross-sectional Ordinary Least Squares (OLS) regression analysis. The results reveal a positive and statistically significant correlation between board size and gender diversity, whereas board age exhibits a negative and statistically significant association with the level of SDG disclosure. This study contributes to both the literature surrounding Benefit Corporations and the disclosure of SDGs.