The Role of Corporate Governance in Enhancing Environmental, Social, and Governance (ESG) Disclosure

Farah Fatirah Zainal (), Mahadir Ladisma Awis () and Sharifah Faatihah Syed Mohd Fuzi ()
Additional contact information
Farah Fatirah Zainal: Universiti Teknologi MARA, Faculty of Administrative Science and Policy Studies
Mahadir Ladisma Awis: Universiti Teknologi MARA, Faculty of Administrative Science and Policy Studies
Sharifah Faatihah Syed Mohd Fuzi: Universiti Teknologi MARA, Faculty of Administrative Science and Policy Studies

A chapter in Proceedings of the 2nd International Conference on Administrative Science (ICAS 2024), 2025, pp 633-644 from Springer

Abstract: Abstract This research investigated the impact of corporate governance mechanisms on the quality and extent of Environmental, Social, and Governance (ESG) disclosure, with a particular emphasis on Legitimacy Theory. A quantitative approach was employed to analyse secondary data sourced from peer-reviewed articles in the SCOPUS database, covering the period from 2020 to 2024. The study utilised specific keywords and Boolean operators to identify relevant literature, applying stringent inclusion and exclusion criteria to ensure high-quality data selection. The findings revealed that corporate governance structures, including board composition, audit committees, and ownership structure, played a pivotal role in shaping ESG disclosure practices. However, an overemphasis on board-level characteristics was noted, leaving a gap in the exploration of other governance elements such as managerial incentives and corporate culture. The research also highlighted significant differences between ESG disclosure practices in Asian and Non-Asian countries, with variations attributed to regulatory frameworks, cultural influences, and levels of economic development. The application of Legitimacy Theory demonstrated that companies often engage in ESG disclosure to enhance their societal legitimacy, particularly in industries subject to public scrutiny. Furthermore, the study underscored the importance of both internal governance mechanisms and external pressures in driving comprehensive and transparent ESG disclosures. In conclusion, the research provided valuable insights into how corporate governance can influence sustainability reporting, suggesting that future studies should incorporate a broader range of variables to develop more robust frameworks for ESG disclosure. The findings offer practical implications for policymakers and corporations aiming to improve transparency and accountability in sustainability reporting.

Keywords: Corporate Governance; Enhancing Environmental Social and Governance (ESG); Quantitative Research (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-791-5_64

Ordering information: This item can be ordered from
http://www.springer.com/9789464637915

DOI: 10.2991/978-94-6463-791-5_64

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().