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Bolourian, Soudabeh - 3MT slide.pptx (305.46 kB)

Analysing the Impact of Corporate Governance on Corporate Sustainability at Board-level

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posted on 2018-10-22, 09:39 authored by Soudabeh Bolourian
3 Minute Thesis presented at the Cranfield Doctoral Network Annual Event 2018.

The relationship between Corporate Governance (CG) and sustainability is of critical importance because it addresses stakeholders’ social, environmental, economic and ethical needs. Corporate Sustainability (CS) has been noted as a development of good governance. Companies with better governance are inclined to be more socially responsible. Also, core to the CG system are the board of directors’ (BOD) responsibilities. They are responsible for overseeing, advising and ensuring management is moving in line with organisational goals. Thus, BOD will likely be responsible for environmental and social matters in organisations that consider such matters fundamental for their existence. However, according to some researchers, in the CG realm there is not much on the board’s role in monitoring corporate responsibility and sustainability Therefore, I find the idea of bridging the gap between CG and CS, or as I like to call it “aligning the mind and the heart” in an organisation fascinating and vital. The mind referring to CG that for me represents principle, order and logic. The heart being CS since I believe it consists of elements more emotionally based. Considering that corporations are currently facing two pressing issues: Board diversity and CS, prior studies have focused on various attributes of BOD and its effects on sustainability performance. Additionally, referring to individuals and committees, it has been suggested that more research needs to be done on the impact of other entities on organisational performance besides the board as a whole. However, few have examined how board-level committee attributes, particularly ones dedicated to CS issues, will affect the sustainability performance of a company. Therefore, this research aims to investigate the various underlying theories and challenges of the CG and CS relationship with a view to measuring and defining the impact and interaction of a sustainability committee at board-level and its attributes on sustainability performance.


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