CORPORATE GOVERNANCE REFORM: FOSTERING ETHICAL LEADERSHIP FOR SUSTAINABLE DEVELOPMENT

Pankaj Chhuttani

doi:10.29121/shodhkosh.v5.i6.2024.6335

Authors

Mr. Pankaj Chhuttani Assistant Professor, School of Law, GD Goenka University, Gurugram and Research Scholar, RGNUL, Patiala

DOI:

https://doi.org/10.29121/shodhkosh.v5.i6.2024.6335

Keywords:

Corporate Governance Reform, Ethical Leadership, Sustainable Development Goals, Stakeholder-Oriented Governance, Executive Compensation

Abstract [English]

Corporate governance reform is crucial for fostering ethical leadership within corporations and advancing sustainable development goals. This paper explores key trends and strategies in corporate governance aimed at promoting ethical behaviour and responsible business practices. Stakeholder-oriented governance models emphasize the inclusion of diverse stakeholders in decision-making processes, enhancing accountability and trust.
Board diversity initiatives seek to bring varied perspectives to the table, enabling better risk management and decision-making related to sustainability challenges. Moreover, linking executive compensation to sustainability performance metrics incentivizes ethical conduct and aligns financial incentives with long-term sustainability goals.
By embracing these governance reforms, corporations can enhance their commitment to ethical leadership and contribute to sustainable development objectives. This paper underscores the transformative potential of corporate governance in driving positive social and environmental impact, urging further research and implementation of governance reforms to address pressing global challenges.

References

Clarke, T., & Delbridge, R. (2019). Corporate governance and sustainable development: Inconsistencies, paradoxes and dilemmas: A global perspective. Organization Studies, 40(1), 1-21.

Aguilera, R. V., & Jackson, G. (2003). The cross-national diversity of corporate governance: Dimensions and determinants. Academy of Management Review, 28(3), 447-465. DOI: https://doi.org/10.2307/30040732

Blair, M. M. (1995). Ownership and control: Rethinking corporate governance for the twenty-first century. Brooklyn Law Review, 61, 755.

Cadbury, A. (1992). Report of the committee on the financial aspects of corporate governance. Gee London. DOI: https://doi.org/10.1093/oso/9780198258599.003.0003

Davis, J. H., Schoorman, F. D., & Donaldson, L. (1997). Toward a stewardship theory of management. Academy of Management Review, 22(1), 20-47. DOI: https://doi.org/10.2307/259223

Freeman, R. E., & Reed, D. L. (1983). Stockholders and stakeholders: A new perspective on corporate governance. California management review, 25(3), 88-106. DOI: https://doi.org/10.2307/41165018

Ramakrishnan, K., & Kumar, B. R. (2019). Corporate governance and sustainable development: A study of select Indian companies. Journal of Commerce & Accounting Research, 8(2), 12-21. DOI: https://doi.org/10.1177/0974686219836528

Sundaresan, S., & Singh, A. P. (2017). Corporate governance and sustainable development: Evidence from India. Journal of Governance and Regulation, 6(2), 83-92.

Singh, S. P., & Pandey, A. (2019). Corporate governance and sustainable development: An empirical investigation of Indian firms. Indian Journal of Corporate Governance, 12(1), 23-36.

Sharma, P., & Jain, K. (2016). Corporate governance and sustainable development: A study of Indian corporate sector. International Journal of Management and Commerce Innovations, 4(1), 27-33.

Anand, A., & Agrawal, R. (2018). Corporate governance practices and sustainable development: Evidence from Indian firms. Vision: The Journal of Business Perspective, 22(3), 241-250.

Monks, R. A. G., & Minow, N. (2008). Corporate governance. John Wiley & Sons.

Monks, R. A. G., & Minow, N. (2011). Corporate governance. John Wiley & Sons. DOI: https://doi.org/10.1002/9781119207238

Palmer, D., & Barber, B. (2001). Challenges in corporate governance: Whose challenge? Whose governance? Academy of Management Review, 26(2), 167-173.

Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. The Journal of Finance, 52(2), 737-783. DOI: https://doi.org/10.1111/j.1540-6261.1997.tb04820.x

Solanke, I. O. (2018). Corporate governance in Nigeria: A critical review. Accounting and Finance Research, 7(4), 11-19.

Stiglitz, J. E. (2002). Information and the change in the paradigm in economics. The American Economic Review, 92(3), 460-501. DOI: https://doi.org/10.1257/00028280260136363

Tricker, R. (2012). Corporate governance: Principles, policies, and practices. Oxford University Press.

Sundaresan, S., & Singh, A. P. (2017). Corporate governance and sustainable development: Evidence from India. Journal of Governance and Regulation, 6(2), 83-92.