Country's gender equality and corporate sustainability in the information technology industry: Does national culture matter?

Purpose This study aims to examine the relationship between national-level gender equality and corporate sustainability reporting in the information technology industry. Likewise, it explores the moderating role of national culture in shaping this relationship, thereby contributing to understanding how macro-level institutional and cultural factors influence firm-level sustainability practices. Design/methodology/approach Using panel data from information technology firms across multiple countries between 2010 and 2019, the study employs a linear mixed model (LMM) to test the hypotheses. Sustainability reporting is based on Bloomberg's environmental, social and governance disclosure scores for firms. The national-level gender equality is measured by the Gender Gap Index (GGI). Hofstede's cultural dimensions are used to construct a composite national culture index, which serves as a moderator in the analysis. Findings The results demonstrate a positive relationship between the GGI and sustainability reporting, indicating that greater gender equity at the national level enhances corporate sustainability reporting. However, this positive relationship weakens in countries with more substantial national cultural attributes, such as high power distance or collectivism, suggesting that cultural dimensions can either reinforce or counteract gender-equity-driven sustainability initiatives. Practical implications Policymakers should align gender-equity initiatives with cultural transformation strategies to enhance corporate sustainability outcomes. Firms should adapt sustainability practices to local cultural contexts while fostering leadership diversity to improve sustainability performance. Originality/value This study extends existing research by focusing on information technology firms and incorporating national culture as a moderating variable. By linking macro-level societal norms to firm-level sustainability actions, it provides a nuanced understanding of how institutional and cultural factors jointly influence sustainability practices.