Companies can no longer expect to engage in dubious or unethical corporate behaviour without risking their reputation and damaging, perhaps irrevocably, their market position. Irresponsible corporate behavior not only deprives shareholders of long-term returns but also ultimately imposes a cost on society as a whole. Sustainable business is about ensuring that entities contribute toward positive social, environmental, and economic outcomes. Bad business behaviour is costly for stakeholders, for markets, for society, and the economy alike.
To ensure that a company behaves well, the buy-in of the leadership team is crucial. The full commitment of the board of directors, in conjunction with the senior managers of the organization, is required if an organization is to be socially responsible. In this sense, leadership does not reside with an individual (the CEO) within the organization but with all of those at the apex of corporate power and control. Effective change management requires enlightened and capable leadership to instigate and drive the process of embedding a sustainable and socially responsible corporate philosophy and culture that supports good business decision-making. A profound understanding of the requirements of such a leadership process will help corporate managers become highly effective change agents.
Governance will be the main driver of this change. For the economy and financial markets to become sustainable and resilient, radical changes in corporate leadership need to take place. Integrated reporting, government regulation, and international standards will all be important factors in bringing about this change.
As well as understanding the effects of corporate behavior on financial markets, such an understanding is also now imperative in relation to the social and environmental contexts.
‘Anyone involved in the development of boardroom functioning will treasure this book because it provides another avenue to help academics and professionals become reflective, observant and introspective. This will be extremely helpful in gaining knowledge for improving business strategy and leading the business of sustainability. True experts on each topic have contributed in achieving this. Impeccable!’
Manoj K. Raut, CEO and Director, Institute of Directors
Part I: Market Behaviour, Stakeholders’ Approach and Good Governance
1. Agency Theory: Explaining or Creating Problems? Good Governance and Ethical Behaviour for Sustainable Business
2. Using a Stakeholder Approach to Understand Success: Empirical Tests in Indian Businesses
3. Behavior in Academe: An Investigation into the Sustainability of Mainstream Scholarship in Management Studies
Part II: Effective Business Behaviour for Corporate Sustainability
4. The Walls Between Us: Governance for Sustainability
5. Governing Corporate Responsibility: The Role of Soft Regulation
6. Corporate Citizenship, Ethics and Accountability: The Significance of the Process of Trust for Corporate Legitimacy in Late Modernity
Part III: Monitoring and Reporting on Sustainability
7. Positioning of Corporate Social Responsibility in Media Reporting: The Role of Media Setting
8. A Pathway to Corporate Sustainability – Social Accounting
9. ESG Matters and the Boardroom
Part IV: The Requirements for Implementation of Sustainability
10. The Drivers of Change
11. From Ego-to Eco – Theoretical Challenges and Practical Implications of a "Next Generation": Responsible Leadership as a Collaborative Endeavor
12. Valuing Corporate Governance
13. Defining and Achieving Good Governance
Today’s developments within the field of sustainability and governance appeal to a growing audience in many aspects. While there are many studies on governance and finance, the focus to include sustainability is missed. The convergence between these three fields, Finance, Governance, and Sustainability, has a high potential for solutions providing a wider perspective to the issues and barriers encountered in sustainability. The aim of the Finance, Governance and Sustainability: Challenges to Theory and Practice series, edited by Güler Aras, is to fill this gap by bringing together the recent developments at the intersection of these three fields.
This series shares the studies of academics, researchers, entrepreneurs, policy makers and government officers aiming to contribute to the progress and overcome the emerging barriers in sustainability. In addition, the linkage of the series’ studies, to the newly established Center for Finance, Corporate Governance and Sustainability, will provide the most current research and debate in this field along with a global perspective.
The series combines strong conceptual analysis, with wide ranging empirical focus, and a wealth of case material. Also included are summary points, suggestions for further reading, web resources, and an extensive bibliography. The level of presentation is for graduate students, academics, as well as policy and decision-makers around the world.