Value-enhancing drivers of corporate governance in improving human rights due diligence: Worldwide evidence

The study aims to investigate the role of corporate governance in driving effectivehuman rights due diligence (HRDD) practises. The study tests the impact of corporategovernance mechanisms on HRDD on an international sample of 509 listed compa-nies operating in high-risk sectors included in the Corporate Human Rights Bench-mark. Our findings show the positive effect of corporate governance on HRDD,suggesting that committed corporate governance, especially sustainability committeeand board diversity, improves the effectiveness of HRDD carried out by companies.Our study contributes to the literature by providing insights into enhancement-baseddrivers of corporate governance, which positively impact HRDD. This research alsohas practical implications for companies because it can help them enhance theirHRDD by establishing a sustainability committee or supporting gender diversitywithin the board. This research addresses social and policy implications consideringthe European directive on corporate sustainability due diligence directive (CSDDD),which mandates HRDD for large EU and non-EU companies.