The financial landscape of the insurance industry often reflects the health and resilience of the broader economy, and the Takaful insurance sector is no exception. Emerging research from Hachicha, Jouber, and Benyoussef sheds light on pivotal themes impacting this unique insurance sector, particularly during challenging times. Their study examines how board gender diversity moderates the relationship between Corporate Social Responsibility (CSR) disclosures and the financial stability of Takaful insurance during crises. In an era where societal expectations for corporate accountability are at an all-time high, understanding the interplay of these elements is crucial for policymakers, investors, and industry leaders alike.
Takaful insurance, an ethical alternative to conventional insurance, operates on shared risk and cooperative principles in accordance with Islamic law. The concept promotes solidarity over profit maximization, making it a viable option in regions with significant Muslim populations. However, like all financial institutions, Takaful providers are not immune to crises, whether they arise from economic downturns, pandemics, or geopolitical tensions. In examining Takaful’s resilience during these turbulent times, the research highlights the critical role that governance, particularly through diverse boards, can play in shaping outcomes.
In recent years, the growing emphasis on CSR has transformed from being a mere corporate obligation into a vital aspect of business strategy. Companies are increasingly expected to act responsibly while also being transparent about their social and environmental impacts. The research positions CSR disclosures as a strategic tool, necessary not only for compliance but also for fostering consumer trust and loyalty. However, the effectiveness of CSR efforts may be moderated by the characteristics of the board overseeing these initiatives—specifically, the diversity of its members.
This study presents an innovative angle by focusing on board gender diversity as a moderating variable. The authors suggest that gender-diverse boards may enhance the strategic implementation of CSR disclosures, contributing positively to the financial stability of Takaful insurance companies, especially in crisis conditions. Gender diversity on corporate boards is not just a matter of equity; it often leads to a richer variety of perspectives, experiences, and decision-making styles, which can enhance corporate governance and strategy.
One of the study’s core allegations is that companies with women present on their boards may approach CSR differently than their male counterparts. The diverse lenses through which female board members view stakeholder engagement and social responsibility might lead to stronger advocacy for comprehensive CSR-related disclosures. This not only fulfills compliance needs but also positions the company more favorably in the eyes of the consumer during difficult times.
The timing of CSR disclosures is critical. During periods of economic instability or crisis, consumers and stakeholders are hyper-aware of corporate behavior. The research posits that Takaful companies with robust CSR strategies, particularly those fostered by gender-diverse boards, can maintain or even enhance their financial stability. The visibility of a company’s CSR efforts, communicated through transparent disclosures, seems to resonate more during crises—a time when trust is at a premium.
Data presented in the study comprises an extensive analysis of Takaful insurance firms across various crisis situations, tracking their financial performance relative to their CSR disclosures. By correlating these metrics, the researchers have managed to paint a clear picture of trends and outcomes associated with gender diversity on boards. Their findings reveal that firms leveraging gender diversity can withstand financial shocks better than their less diverse peers, showcasing the importance of inclusive governance.
The implications of this research stretch beyond merely benefitting Takaful insurance companies. The study advocates for broader policy changes to promote gender diversity in boardrooms across industries. As today’s business environment calls for more adaptive, inclusive decision-making, the cases made within this research support existing movements towards increased representation. Gender quotas in corporate governance could serve as a means to not only achieve equity but also bolster the overall stability of industries beyond just insurance.
It is important to consider how the relationships established through balanced representation feed into stakeholder engagement. Having a diverse board may also reflect on a company’s dedication to inclusive practices, resonating with customers who prioritize ethical consumption. Therefore, the success story of Takaful insurance isn’t solely about numbers; it extends into the realm of shared values and mutual respect, turning corporate governance into a public relations advantage in times of adversity.
While this research holds great promise, it also opens the door for future inquiries into the complexities of board diversity and organizational performance. Questions remain concerning the nuances of how different dimensions of diversity—beyond gender—affect corporate governance and performance. The relationship between board composition, responsiveness to societal expectations, and stakeholder engagement merits further exploration to fully understand the strategic imperatives in different contexts and sectors.
This study thus stands as a landmark exploration of gender dynamics within corporate governance and their potential benefits, particularly in specialized sectors like Takaful. For practitioners within the industry, the findings suggest revisiting governance structures and embracing inclusivity as a tool for resilience. In conclusion, as the research indicates, the nuanced interplay between board gender diversity, CSR disclosures, and financial stability is not just an academic exercise; it reflects a tangible pathway toward more sustainable and ethical organizational practices, particularly in volatile times.
The implications of this research may resonate well beyond the realm of financial stability in Takaful insurance. It serves as a clarion call for companies worldwide to prioritize diverse governance, not just as a moral or ethical imperative, but as a strategic lever with profound impacts on business resilience. When organizations lean into gender diversity, particularly in leadership positions, they foster an environment that prioritizes transparency and responsibility—the qualities that bolster trust, especially during periods of uncertainty and crisis.
By demonstrating the essential correlation between board composition and its broader implications for corporate stability, Hachicha, Jouber, and Benyoussef provide a compelling narrative that invites stakeholders across sectors to rethink their approach to governance, CSR, and overall corporate strategy. As we move forward in an increasingly complex and uncertain world, the lessons drawn from this study become ever more relevant—underscoring the importance of inclusive leadership in achieving robust, resilient, and ethically sound business practices.
Subject of Research: The moderating effect of board gender diversity on the link between CSR disclosure and Takaful insurance financial stability in times of crisis.
Article Title: The moderating effect of board gender diversity on the link between CSR disclosure and Takaful insurance financial stability in times of crisis.
Article References:
Hachicha, S., Jouber, H. & Benyoussef, S. The moderating effect of board gender diversity on the link between CSR disclosure and Takaful insurance financial stability in times of crisis.
Discov Sustain 6, 854 (2025). https://doi.org/10.1007/s43621-025-01795-5
Image Credits: AI Generated
DOI: 10.1007/s43621-025-01795-5
Keywords: Takaful insurance, board gender diversity, CSR disclosure, financial stability, corporate governance, sustainability.
