Convergence in corporate governance systems and sustainability culture Online publication date: Mon, 11-Dec-2017
by Daniela M. Salvioni; Simona Franzoni; Francesca Gennari; Raffaella Cassano
International Journal of Business Performance Management (IJBPM), Vol. 19, No. 1, 2018
Abstract: The aim of this paper is to encourage a debate about the effective adoption of a sustainability approach by companies' boards, being a substantial factor of convergence between insider and outsider corporate governance systems. Corporate social responsibility (CSR) and sustainability are based on good corporate governance, grounded on stakeholder engagement, fairness, transparency and accountability. All these principles are related to sustainable boards and determine a governance approach directed to the growth of corporate value in the long-term. Leadership aiming at sustainability requires CSR to be transferred from top management to the entire organisation, spreading a real culture of sustainability into organisation. In this sense, the CSR, if properly realised, can be considered as a factor of substantial convergence between the different systems of corporate governance existing worldwide.
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