Corporate governance and sustainability

TLDR: In this article, the authors focus on Sustainability and Corporate Governance from the point of view of integration and, in connection with the measurement of corporate performance, Corporate sustainability reporting is also gaining in importance.

Abstract: The paper focuses on Sustainability and Corporate Governance from the point of view of integration and, in connection with the measurement of corporate performance, Corporate Sustainability Reporting is also gaining in importance. Corporate Governance is understood as a key element when reaching economic performance and growth enabling to increase the investors’ trust. Further on, it enables to create the structures supporting determination, control and reach of corporate objectives and targets. It provides creation of suitable initiatives for the members of administrative bodies and the management. In accordance with the OECD principles (OECD Principles, 2004) it is assumed that the effectively functioning Corporate Governance system within the company and across the whole economy assists to create the confidence and trust necessary for existence of the market economy. A very wide spectrum of sectors coming under the Corporate Governance also appears when trying to define this term succinctly. Integrated with sustainability which is defined as corporate strategy, long-term corporate goals are followed along with effectiveness, performance and competitiveness by means of incorporating of economic, environmental and social aspects into corporate governance.