Abstract
M.Comm. (Financial Management)
Our planet is getting smaller and older because the population is growing by the second and
our resources and means of sustaining life are getting depleted. Companies need to rethink
their strategy and business models to do no harm to the environment and society. The board
of directors, as custodians of corporate governance, are responsible to direct their
corporations towards sustainability performance. This has implications for the manner in
which the board act and organise themselves. This study explores whether the board
characteristics of sustainability performing companies differs from non-performing
companies in terms of the gender; ethnicity; age; affiliation and the background of the
directors at specified points in time namely 2004, 2007 and 2010 and how these board
characteristics evolved over the specified period. The results should contribute to obtaining
an understanding of how boards in South Africa are organising themselves in practice to
enhance the sustainability performance of their companies. A comparative analysis using
cross sectional data found that companies embracing sustainability performance have
significantly more directors with non-traditional backgrounds on their board. A trend
analysis using longitudinal data found that sustainability performing as well as nonperforming
companies is becoming more diverse. Findings from this study provides
practical guidance to companies wishing to integrate sustainability into their governance
structures in that companies should consider recruiting directors with non-traditional
backgrounds.