Twenty-fourth International Conference on Diversity in Organizations, Communities & Nations

Abstract

Corruption, inequality and environmental degradation are rampant around the world today. But are these issues inter-related? If so, how are they inter-related? This paper develops and tests hypotheses based on a review of the literature and theories linking corruption, gender inequality and environmental performance. It contrasts two paradigms of sustainable development – economies of exploitation vs. economies of affection – by positioning them along a continuum. Testing the hypotheses draws on several secondary data sources, including the Environmental Performance Index (EPI) and the Corruption Perceptions Index (CPI). A significant direct effect is found between corruption and the EPI. Corruption is clearly detrimental to the environment. There is also an indirect effect, through gender inequality. Gender inequality is also directly linked to lower environmental performance. GDP/capita and “democracy” enter the analysis as control variables. While the study uses secondary data, all sources are considered credible. The results should inspire businesses, governments and non-governmental organizations (NGOs) to invest in, legislate toward and advocate for greater gender equality, as well as stronger anti-corruption policies and practices. This paper appears to be among the first to empirically link gender inequality to environmental performance. It also demonstrates how social issues can impact the environmental performance of nations and suggests sustainable development may best be built on a foundation of gender equality and freedom from corruption, i.e. on an economy of affection.