Corporate Governance and Sustainability in Emerging Economies: A Systematic Literature Review

DOI

10.2991/978-94-6463-696-3_5How to use a DOI?

Keywords

Corporate Governance; Sustainability; Emerging Economies; Stakeholder Theory

Abstract

The study systematically reviews literature on the relationship between corporate governance and corporate sustainability performance from 1992 to 2024 to explore how internal corporate governance mechanisms drive corporate sustainability. The review identifies sustainability development goals followed by firms as a key indicator and parameter having impact on their long-term success and better organizational performance. The key governance mechanisms aligned with sustainability objectives leading to favourable strategic decisions contribute to enhanced sustainable performance and ultimately financial outcomes as well as investor behaviour.

The findings supports institutional theory, stakeholder theory and agency theory focusing on a robust governance framework for the companies that balances stakeholder interests with shareholder value and reduces agency problem by bringing effective regulations towards sustainability. Boardroom diversity, particularly board gender diversity, found to have a significant role in improving social and environmental performance. Additionally, aligning CEO compensation incentives with sustainability development goals and ensuring transparency brings positive outcomes. The review identifies significant trends and gaps in the existing research, suggesting areas for future study, including the impact of firm size, sector, and external economic conditions on corporate sustainability. The implications for researchers, policymakers, and managers underscore the need for collaborative efforts to integrate sustainability into corporate governance practices, ultimately contributing to broader societal goals.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Fiza Bhateja
PY  - 2025
DA  - 2025/05/06
TI  - Corporate Governance and Sustainability in Emerging Economies: A Systematic Literature Review
BT  - Proceedings of the Sustainability in emerging economies - Integrating business excellence in management education (SEE-IBEME-2024)
PB  - Atlantis Press
SP  - 57
EP  - 81
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-696-3_5
DO  - 10.2991/978-94-6463-696-3_5
ID  - Bhateja2025
ER  -