Abstract
Environment, social and governance (ESG) and sustainable corporate governance (SCG) are two popular terms that are floated around the corporate sphere. ESG and SCG are the major governance factors; however, they cannot be considered similar in addressing the environmental, social and governance aspects of a business. It is obvious that corporate governance alone cannot satisfy stakeholders satisfaction and inclusion of ESG and SCG is required. ESG represents a more stakeholder-centric approach to doing business, whereas SCG creates long-term stakeholder value by implementing a sustainable business strategy. This chapter identified literature in these areas and presented a detailed analysis of the global scenario. With the application of stakeholders theory, this chapter highlighted the importance of both governance factors and identified that SCG is the principal trait of corporate governance and ESG can be the part of SCG. This chapter identified the advantages, disadvantages and risks associated with the probable non-implementation of ESG and SCG. This study will be beneficial to regulators, corporate leaders and professional bodies in setting up the standards and amending their codes and policies. This study will enhance the existing body of knowledge and can be converted into a complete empirical study.
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Rehman, A., Ganesan, Y., Haron, H. (2023). What is Priority for Organization: Environmental, Social and Governance or Sustainable Corporate Governance: Literature Review. In: Çalıyurt, K.T. (eds) History of Accounting, Management, Business and Economics, Volume I. Accounting, Finance, Sustainability, Governance & Fraud: Theory and Application. Springer, Singapore. https://doi.org/10.1007/978-981-99-3346-4_8
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