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Sustainability and Convergence: The Future of Corporate Governance Systems?

Author

Listed:
  • Daniela M. Salvioni

    () (Department of Economics and Management, University of Brescia, Contrada Santa Chiara 50, 25122 Brescia, Italy)

  • Francesca Gennari

    () (Department of Economics and Management, University of Brescia, Contrada Santa Chiara 50, 25122 Brescia, Italy)

  • Luisa Bosetti

    () (Department of Economics and Management, University of Brescia, Contrada Santa Chiara 50, 25122 Brescia, Italy)

Abstract

In today’s world, a sustainable approach to corporate governance can be a source of competitive advantage and a long-term success factor for any firm. Sustainable governance requires that the board of directors considers economic, social and environmental expectations in an integrated way, no matter what ownership structure and formal rules of corporate governance apply to the company: this mitigates the traditional differences between insider and outsider systems of corporate governance. Previous studies failed to consider the contribution of sustainability in the process of corporate governance convergence. Therefore, the aim of this article is to fill the gap in the existing literature by means of a qualitative analysis, supporting the international debate about convergence of corporate governance systems. The article describes the evolution of outsider and insider systems in the light of the increasing importance of sustainability in the board’s decision-making and firm’s operation to satisfy the needs of all the company’s stakeholders. According to this, a qualitative content analysis developed with a directed approach completes the theoretical discussion, demonstrating that sustainability can bring de facto convergence between outsider and insider corporate governance systems. The article aims to be a theoretical starting point for future research, the findings of which could also have practical implications: the study encourages the policy makers to translate the sustainable business best practices into laws and recommendations, strengthening the mutual influence between formal and substantial convergence.

Suggested Citation

  • Daniela M. Salvioni & Francesca Gennari & Luisa Bosetti, 2016. "Sustainability and Convergence: The Future of Corporate Governance Systems?," Sustainability, MDPI, Open Access Journal, vol. 8(11), pages 1-25, November.
  • Handle: RePEc:gam:jsusta:v:8:y:2016:i:11:p:1203-:d:83395
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    3. Grażyna ŚMIGIELSKA, 2018. "A business case for sustainable development," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 10(1), pages 49-66, April.
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    7. Elena Merino & Montserrat Manzaneque-Lizano & Jesus Sanchez-Araque, 2019. "Sustainability and Corporate Governance: Transparency and Excessive Directors’ Remuneration in Listed Companies during the Global Financial Crisis," Sustainability, MDPI, Open Access Journal, vol. 12(1), pages 1-1, December.
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    10. Habiba Al-Shaer & Mahbub Zaman, 2019. "CEO Compensation and Sustainability Reporting Assurance: Evidence from the UK," Journal of Business Ethics, Springer, vol. 158(1), pages 233-252, August.
    11. Maria-Teresa Bosch-Badia & Joan Montllor-Serrats & Maria-Antonia Tarrazon-Rodon, 2017. "Efficiency and Sustainability of CSR Projects," Sustainability, MDPI, Open Access Journal, vol. 9(10), pages 1-18, September.
    12. Encarna Guillamon-Saorin & Magdalena Kapelko & Spiro E. Stefanou, 2018. "Corporate Social Responsibility and Operational Inefficiency: A Dynamic Approach," Sustainability, MDPI, Open Access Journal, vol. 10(7), pages 1-26, July.
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    14. Silvia Martelo-Landroguez & Gema Albort-Morant & Antonio L. Leal-Rodríguez & Belén Ribeiro-Soriano, 2018. "The Effect of Absorptive Capacity on Green Customer Capital under an Organizational Unlearning Context," Sustainability, MDPI, Open Access Journal, vol. 10(1), pages 1-20, January.
    15. Elena Fleacă & Bogdan Fleacă & Sanda Maiduc, 2018. "Aligning Strategy with Sustainable Development Goals (SDGs): Process Scoping Diagram for Entrepreneurial Higher Education Institutions (HEIs)," Sustainability, MDPI, Open Access Journal, vol. 10(4), pages 1-17, March.
    16. Chenglong Zheng & Roy Kouwenberg, 2019. "A Bibliometric Review of Global Research on Corporate Governance and Board Attributes," Sustainability, MDPI, Open Access Journal, vol. 11(12), pages 1-25, June.
    17. Michal Pohludka & Hana Stverkova & Beata Ślusarczyk, 2018. "Implementation and Unification of the ERP System in a Global Company as a Strategic Decision for Sustainable Entrepreneurship," Sustainability, MDPI, Open Access Journal, vol. 10(8), pages 1-16, August.
    18. ATM Adnan & Hilda Tandigalla, 2017. "The Dramatic Shift In Emphasis From A Shareholder-Dominated Approach To A Stakeholder-Oriented Corporate Governance Model," European Journal of Business and Economics, Central Bohemia University, vol. 12(2), pages 11151:12-11, January.
    19. Francesca Gennari, 2019. "How to Lead the Board of Directors to a Sustainable Development of Business with the CSR Committees," Sustainability, MDPI, Open Access Journal, vol. 11(24), pages 1-1, December.
    20. Daniela M. Salvioni & Alex Almici, 2020. "Transitioning Toward a Circular Economy: The Impact of Stakeholder Engagement on Sustainability Culture," Sustainability, MDPI, Open Access Journal, vol. 12(20), pages 1-1, October.
    21. Alexandra Zbuchea & Florina Pînzaru & Mihail Busu & Sergiu-Octavian Stan & Alina Bârgăoanu, 2019. "Sustainable Knowledge Management and Its Impact on the Performances of Biotechnology Organizations," Sustainability, MDPI, Open Access Journal, vol. 11(2), pages 1-20, January.
    22. Camelia Oprean-Stan & Sebastian Stan & Vasile Brătian, 2020. "Corporate Sustainability and Intangible Resources Binomial: New Proposal on Intangible Resources Recognition and Evaluation," Sustainability, MDPI, Open Access Journal, vol. 12(10), pages 1-1, May.
    23. Daniela M. Salvioni & Simona Franzoni & Raffaella Cassano, 2017. "Sustainability in the Higher Education System: An Opportunity to Improve Quality and Image," Sustainability, MDPI, Open Access Journal, vol. 9(6), pages 1-27, May.
    24. Francesca Gennari & Daniela M. Salvioni, 2019. "CSR committees on boards: the impact of the external country level factors," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(3), pages 759-785, September.

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    More about this item

    Keywords

    corporate governance; sustainability; corporate social responsibility; convergence; insider systems; outsider systems; stakeholder relationship management; qualitative content analysis;
    All these keywords.

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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