Corporate governance and sustainability performance: a literature review

The relationship between corporate governance and sustainability performance has attracted significant attention in recent years, as organisations increasingly recognise the importance of sustainable practices in achieving long-term success. Corporate governance encompasses the systems, principles, and processes used to direct and control a company and plays a crucial role in shaping sustainability outcomes. This synthesis explores the interaction between corporate governance mechanisms and sustainability performance by leveraging a variety of scientific sources. Effective corporate governance mechanisms are essential to driving sustainability performance. These findings show that the quality of governance directly impacts an organisation's ability to implement effective sustainability initiatives. By aligning stakeholder interests with sustainability goals, organisations can create a more sustainable operational framework. In conclusion, corporate governance is an important determinant of sustainability performance. Strong governance mechanisms not only facilitate the implementation of sustainability initiatives but also increase transparency and accountability, which is essential for stakeholder trust. As organisations continue to navigate the complexities of sustainability, the integration of strong corporate governance practices will be critical to achieving long-term sustainability goals.