In recent years, there has been a virtual explosion of interest in corporate governance. Corporate scandals and the need to protect minority shareholders' interests, for example, are some of the reasons behind the development of corporate governance codes in numerous countries and corporations. At the same time, the concepts of "sustainable development", "corporate responsibility", and "corporate citizenship" have taken root in the business world. Although an extensive body of research treats the fields of corporate governance and sustainable development separately, less attention has been paid to the interaction between both fields. This paper attempts to bridge this gap by examining how corporate governance systems are evolving in order to integrate sustainable development thinking into them. We do so by analyzing the governance systems of the 18 corporations that are leading the market sectors considered by the Dow Jones Sustainability World Index (DJSWI). We present the results of our in depth analysis of the 18 cases and propose the Sustainable Corporate Governance Model that emerges from that analysis.

Sustainability in the boardroom: An empirical examination of Dow Jones sustainability world index leaders

Drawing on the multi-theoretical perspective, the primary purpose of this paper is to empirically investigate the inextricably entwined nexus between board gender diversity and corporate environmental performance within cross-country context.,Multiple regression analysis on a cross-country panel data analysis was used. Further, the authors applied static panel data estimator ordinary least squares (OLS) as a baseline model with different proxies of gender diversity. In addition, to control for the potential endogeneity problem and providing robust findings, the authors run two-stage least squares (2SLS) and lagged independent variables.,The findings clearly unveiled that corporate environmental performance is positively and significantly affected by the level of gender diversity on board. This inextricable and intimate nexus is vastly attributed to the argument that female directors show greater concerns for eco-friendly activities.,The findings of this study provide useful and fruitful insights for regulatory parties and policymakers to mandate gender quota in electing boardroom members to ameliorate corporate environmental performance.,To the best of the authors’ knowledge, most of the prior studies have not yet provided a multi-theoretical analysis of the effect of board gender diversity on environmental performance. Thereby, this study handled this contemporary gap and went beyond the narrow perspectives by diving deep with cross-country analysis.

Boardroom gender diversity and corporate environmental performance: a multi-theoretical perspective in the MENA region

Although firms increasingly publish sustainability reports, assuring such reports is relatively new. This study reviews the literature of sustainability assurance to evaluate the intellectual development of the field and provide recommendations for future studies. It also demonstrates the role of assurance to enhance the credibility of sustainability reports and corporate reputation. This paper systematically reviews 94 papers obtained from the Scopus database between 1993 and August 2021. Our study shows that there is an increase in the number of studies published in recent years. We also found that some countries have received limited attention, such as the USA. The scant literature examining sustainability assurance in private institutions and non-profit organisations should be reinforced. Likewise, the sustainability research also provides limited evidence on the governance debate. The vast majority of research is not based on theoretical grounds. The need for assurance of sustainability reports not only enhances the reputation but also adds more value to the organisation’s planning, monitoring, and accountability. We highlight several new research suggestions that may enhance the understanding of sustainability assurance practices.

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Sustainability assurance practices: a systematic review and future research agenda

Non-financial information is subject to development based on the expectations of stakeholders. As the financial information alone no longer satisfies their desires, this has contributed to improving the phenomenon of disclosure for many countries, especially in issues related to sustainability. In Jordan, disclosure practices are still emerging and voluntary. This study, therefore, investigates the level of environmental, social, and governance (ESG) disclosure in the published annual reports of industrial companies listed on the Amman Stock Exchange and examines several factors related to corporate governance mechanisms and their impact on the level of disclosure. The current study used content analysis to determine the level of disclosure. The results showed that the level of disclosure on ESG performance is still weak. Still, it is developing over time in response to the pressure of stakeholders. The results also revealed a significant impact of the board size and board meetings on the ESG performance. In contrast, the results were disappointing concerning the rest of the proposed factors (non-executive directors, audit committee, auditor type, and board compensation). It did not play any role in explaining the practices of companies in the disclosure of ESG. The case study results help shed light on the interaction of the Jordanian industrial companies listed on sustainability issues. They are considered of interest to various stakeholders, regulators, and relevant government agencies and provide recent evidence of disclosure literature in emerging countries.

https://link.springer.com/content/pdf/10.1007/s43546-021-00167-1.pdf

Corporate governance and voluntary disclosure of sustainability performance: the case of Jordan

The purpose of this study was to conceptualise a framework that reflects an intertwined relationship between the green board committee and firm performance. Agency and stakeholder theories hold a basic notion of supporting the relationship between the green board committee and firm performance. The moderating role of intellectual capital (IC) was introduced in the intertwined relationship between green board committees and firm performance based on a resource-based view theory. This study proposes a new measurement index, namely, the “green board committee index”, to measure the green practices of organisations. This index is comprised of four dimensions: strategy and policymaking, monitoring and control, sustainability, and risk management. The current study hypothesised a significant and positive relationship between the green board committee and firm performance. It was believed that the moderation effect of IC strengthens the relationship between the green board committee and firm performance. The data for this study were proposed to be measured through a content analysis of the company’s annual and embedded reports and a Thomson Reuters DataStream terminal. It adds to the body of knowledge by alluding to an integrated notion of green board committees and IC concerning firm performance. The mentioned conceptual framework sends signals to legislators, regulators, policymakers, and practitioners on the critical insights and actions of green board committees in setting strategies and objectives, addressing sustainability issues, forging a relationship with stakeholders, and increasing the firm’s value from the business operations.

The Inclusion of Intellectual Capital into the Green Board Committee to Enhance Firm Performance

In the macroeconomic environment of the Iberian Peninsula, this paper aims to examine the influence of corporate governance characteristics on corporate sustainability performance. The purpose of this paper is to address corporate practices while determining which corporate governance characteristics can improve corporate sustainability, considering, for this purpose, three dimensions of sustainability: economic, environmental and social.,This sample comprises 99 non-financial companies of the Iberian Peninsula, during the 2013–2017 period. The authors have used the panel data methodology, specifically the generalized method of moments (GMM) estimation method proposed by Arellano and Bover (1995) and Blundell and Bond (1998) to test the hypotheses formulated.,The results obtained have shown that corporate sustainability performance is affected differently depending on the sustainability dimension that is considered. Specifically, the economic dimension is determined by public debt, the board size, board diversity and the existence of an audit committee. Regarding the environmental dimension, the board size and the presence of the audit committee, as well the corporate social responsibility committee, are the most important determinants. Finally, the social dimension was influenced by the board size, audit committee and the control variable of capital structure, which means that in this dimension, the sources of financing used by the company also help in determining its levels of social concern.,To the best of the authors’ knowledge, this is the first time that a study has been carried out in the Iberian Peninsula on the corporate sustainability using GMM-system model for three dimensions of sustainability. Corporate sustainability depends on external and internal factors of companies. Therefore, regulators and managers should realize that they will have to be more effective in their statements.

The influence of corporate governance on corporate sustainability: new evidence using panel data in the Iberian macroeconomic environment

This paper seeks to investigate the impact of ambidexterity (exploration and exploitation) on green product innovation and the success of new products through the effects of sustainability, considering the moderating role of customer pressure. This research proposes a theoretical model that was tested using structural equation modelling (SEM) and a multigroup analysis to understand the moderating role of customer pressure. A 23-item questionnaire was developed to explore the proposed relationships, applied in two different moments, answered by two other critical respondents from each company. At the end of the second collection moment, 336 valid questionnaires were collected from a sample of industrial SMEs in Portugal. The results show a positive influence of ambidexterity on sustainability and, therefore, on new product success and green product innovation. In addition, green product innovation increases the success of new products due to the growing demand for more sustainable products. Furthermore, the chain of effects between ambidexterity and further product success was strengthened when customer pressure was higher. This study stresses the need to actively manage exploration and exploitation investments to enhance ambidexterity, especially when sustainability and green innovation are the expected outcomes. The originality of this research is related to the contributions of hierarchical dynamic capabilities, combining and balancing exploration and exploitation, to produce successful ambidextrous companies in sustainability and green strategies. 

https://onlinelibrary.wiley.com/doi/pdfdirect/10.1002/bse.3287

Greening the business: How ambidextrous companies succeed in green innovation through to sustainable development


Purpose
This paper aims to analyze the corporate governance and corporate social responsibility (CSR) determinants of the Portuguese listed companies’ performance, considering a different point of view by managers, shareholders and other external stakeholders and investors.


Design/methodology/approach
To achieve this aim, the authors have used a sample of 34 nonfinancial listed companies in Euronext Lisbon between 2015 and 2020. The authors use the panel data methodology to test the hypotheses formulated according to the literature review, specifically the generalized method of moments (GMM) system estimation model proposed by Arellano and Bond (1991).


Findings
The main results point out that the determinants of the corporate performance vary depending on the dependent variable considered. From the managers’ perspective, the existence of an audit committee and expenses with the environment increase costs and reduce results, negatively influencing corporate performance, but the company’s maturity adds synergies in resource management and positively influences performance. Shareholders consider that gender diversity and board independence positively influence performance, whereas, for external stakeholders and long-term investors, gender diversity and the social responsibility committee harm the performance of Portuguese companies. However, environmental and social expenditures have a positive effect, showing that the market’s perception is that, in the long run, it is essential to eradicate poverty and protect the environment.


Originality/value
To the best of the authors’ knowledge, this study is the first one to analyze corporate governance and CSR determinants on the performance of listed Portuguese companies. This study shows that in a small banking-oriented country, there is still a long way to go in terms of increasing social responsibility and governance among different stakeholders. It is essential to promote actions that lead to effective governance and awareness of social responsibility.


Governance and social responsibility: what factors impact corporate performance in a small banking-oriented country?


Purpose
This study aims to understand which factors determine the corporate performance of Portuguese and Spanish listed companies between 2011 and 2018, also considering the sub-period marked by the presence of the Troika in Portugal, between 2011 and 2014.


Design/methodology/approach
To achieve this aim, panel data methodology was used, specifically the generalized method of moments (GMM) estimation method proposed by Arellano and Bond (1991), Arellano and Bover (1995) and Blundell and Bond (1998) for 110 non-financial companies from the Iberian Peninsula.


Findings
The results point out different signs and significance of the variables in the companies of the two countries. Regarding the sub-period, our results suggest that the intervention of the Troika in Portugal acted in a very different way from the neighboring country.


Originality/value
This research shows the importance of studying countries individually, even with small dimensions, to reinforce the path that is still necessary for more sustainable companies. Furthermore, when companies have strong governance structures, the harmful contagion from one neighboring country to another may not happen.


Performance drivers in Iberian companies in different economic cycles: new evidence using panel data

PurposeThe main goal of this paper is to study the specific characteristics of the performance of companies in the metallurgical sector, in the northern region of Portugal.Design/methodology/approachTo achieve this aim, the authors have used data from 325 companies manufacturing metal products, except machinery and equipment (CAE Rev.3 25) and 27 companies that manufacture machinery and equipment (CAE Rev. 3 28). The models were estimated by using the panel data methodology for the period between 2011 and 2019. Specifically, the estimation method of the generalized method of moments system (GMM system) proposed by Arellano and Bover (1995) and Blundell and Bond (1998) was used.FindingsThe results show that the main decisions on the performance of metallurgical companies in Northern Portugal depend on the dimensions of sales in the domestic market (SDM), sales in the community market (SCM), and sales in the foreign market (SFM) and also highlight that the signal and significance of the specific variables depends on how the different stakeholders understand performance.Originality/valueAs far as the authors know, this is the first study to comparatively analyze the two metallurgical databases in Portugal. Despite the huge difference in the size of the sample, this study’s results show that in an era of paradigm shift about what business objectives should be, stakeholders are still not environmentally aware and the social dimension is only considered by shareholders, but not yet by the manager and the general community.

Beatriz Lopes Cancela

Papers

The influence of corporate governance on corporate sustainability: new evidence using panel data in the Iberian macroeconomic environment

Greening the business: How ambidextrous companies succeed in green innovation through to sustainable development

Governance and social responsibility: what factors impact corporate performance in a small banking-oriented country?

Performance drivers in Iberian companies in different economic cycles: new evidence using panel data

Determinants factors of the performance of metallurgical companies in Northern Portugal: new evidence using panel data