Governance and sustainability: An investigation into the relationship between corporate governance and corporate sustainability

Abstract

Purpose: The purpose of this paper is to show that corporate governance is fundamental to the continuing operation of any corporation; hence much attention has been paid to the procedures of such governance. Similarly sustainability is fundamental to the continuing operation of any corporation, and is arguably the fashionable concept of the moment. While it is clear what is generally meant by corporate governance it is much less clear what is meant by sustainability and the paper starts by investigating this concept. Design/methodology/approach: For two such fundamental concepts however it would seem that there should be a relationship between the two, although little work has been undertaken on exploring this relationship. The central part of this paper is therefore based upon an exploration of the relationship between governance and sustainability, by investigating the FTSE100 companies and their corporate governance policies. Findings: This analysis found some strengths – and hence cause for optimism – and some weaknesses – and hence cause for concern. Areas where further work is needed are identified. Research limitations/implications: The paper has implications in enhancing the understanding of the necessary components of corporate governance, although it is necessarily limited by the size of the sample. Originality/value: This paper increases the understanding of the relationship between corporate governance, sustainability and sustainable development.