Sustainability Reporting, Value Creation and Effective Corporate Governance: A Managerial Perspective

Abstract

Sustainability reporting has gained momentum in recent years, especially with the enhanced attention paid by market participants and regulators to environmental, social and governance (ESG) practices. This chapter discusses the interconnected link between sustainability reporting and ESG and helps readers comprehend how businesses evaluate and communicate their social performance (i.e.ESG) and financial performance (i.e. economic) to businesses' key stakeholders. This chapter also reviews the inclusion of corporate governance into the presumably simple yet certainly complex sustainability reporting–ESG–corporate governance mix that provides businesses with the opportunities to do good in the pursuit of financial success and sustainable growth. Additionally, sustainability reporting that reports authentic ESG practices in the presence of effective corporate governance also helps to enhance a company's public image, attract investors, reduce risks and contribute to environmental and societal well-being. The successful integration of sustainability reporting and ESG with traditional financial reports, thus, is in the hands of managers who are expected to lead in the best interest of the company's shareholders and other stakeholders. Effective corporate governance, therefore, is seen as crucial for this convergence to create value, promote economic growth and address environmental and social concerns for long-term growth and sustainability.

Citation

Sivanandan, P. (2024), "Sustainability Reporting, Value Creation and Effective Corporate Governance: A Managerial Perspective", Ali, M., Choi-Meng, L., Puah, C.-H., Raza, S.A. and Sivanandan, P. (Ed.) Strategic Financial Management, Emerald Publishing Limited, Leeds, pp. 1-12. https://doi.org/10.1108/978-1-83608-106-720241001