Bridging strategy and sustainability: the impact of female audit committee chairs on CSR–ESG alignment in UK firms

Purpose The purpose of this article is to examine the impact of CSR strategies on ESG performance. In addition, this study also analyse the moderation role of female chairman audit committee in this relationship. Design/methodology/approach This study covers a sample of UK firms listed on the FTSE 350 over the business years 2011–2021, comprising 1,925 firm-year observations. The study employed both static and dynamic panel data analysis. Findings The findings reveal that CSR strategy significantly improves ESG performance, highlighting the crucial contribution of responsible business practices in achieving sustainability performance. Subsequently, female chairmen of the audit committee have an impact on the effectiveness of CSR initiatives, thereby demonstrating that the gender diversity of leadership can improve the same set of sustainable outcomes. Practical implications This study identifies that the aspect of promoting gender diversity in audit committees should be a priority concern for policymakers as well as regulators. Firms can enhance their accountability and ethical performance and, therefore, progress their CSR initiatives by making use of a blend of diverse views in decision-making positions. The present study has underlined the requirement of designing governance frameworks that are strong and resilient enough to meet the changing societal expectations and dynamic business contexts. Originality/value This study expects to contribute to the literature by placing the importance of gender diversity through female audit committee chairs in an important position that could enhance ethical governance, thereby contributing to sustainable business practices.