THE ROLE OF CORPORATE GOVERNANCE IN ADVANCING SOCIAL SUSTAINABILITY: A COMPARATIVE STUDY ACROSS MANUFACTURING INDUSTRIES
DOI:
https://doi.org/10.29121/granthaalayah.v13.i6.2025.6244Keywords:
Corporate Governance, Social Sustainability, Manufacturing Industries, Thematic Analysis, Stakeholder EngagementAbstract [English]
This research explores corporate governance's role in ensuring social sustainability throughout manufacturing sectors by qualitative, comparative means. The study applies thematic analysis to responses from semi-structured interviews with textile, automobile, and electronics sector governance and sustainability experts to reveal how governance shapes socially responsible behavior. The research identifies four governance mechanisms central to social sustainability—ethical leadership and board make-up, stakeholder interaction, human capital improvement, and strategic alignment of social goals—that work together to promote social sustainability. Of particular interest, industry-specific variations of governance practices mirror unique operating issues and regulatory requirements. This work contributes to the emerging ESG conversation by emphasizing governance as an affirmative facilitator of social sustainability as opposed to a compliance function. The research emphasizes the importance of incorporating social values into governance frameworks by way of participatory decision-making, transparency, and accountability. The findings provide policy advice to policymakers as well as corporate leaders who seek to engender inclusive and equitable development through governance reforms.
Downloads
References
Aguilera, R. V., Williams, C. A., Conley, J. M., & Rupp, D. E. (2006). Corporate Governance and Social Responsibility: A Comparative Analysis of the UK and the US. Corporate Governance: An International Review, 14(3), 147–158. https://doi.org/10.1111/j.1467-8683.2006.00495.x DOI: https://doi.org/10.1111/j.1467-8683.2006.00495.x
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108 DOI: https://doi.org/10.1177/014920639101700108
Bear, S., Rahman, N., & Post, C. (2010). The Impact of Board Diversity and Gender Composition on Corporate Social Responsibility and Firm Reputation. Journal of Business Ethics, 97(2), 207–221. https://doi.org/10.1007/s10551-010-0505-2 DOI: https://doi.org/10.1007/s10551-010-0505-2
Dyllick, T., & Hockerts, K. (2002). Beyond the Business Case for Corporate Sustainability. Business Strategy and the Environment, 11(2), 130–141. https://doi.org/10.1002/bse.323 DOI: https://doi.org/10.1002/bse.323
Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The Impact of Corporate Sustainability on Organizational Processes and Performance. Management Science, 60(11), 2835–2857. https://doi.org/10.1287/mnsc.2014.1984 DOI: https://doi.org/10.1287/mnsc.2014.1984
Freeman, R. E. (2010). Strategic Management: A Stakeholder Approach. Cambridge University Press. https://doi.org/10.1017/CBO9781139192675 DOI: https://doi.org/10.1017/CBO9781139192675
Gonela, V., & Zhang, J. (2014). Design of the Optimal Industrial Symbiosis System to Improve Bioethanol Production. Journal of Cleaner Production, 64, 513–534. https://doi.org/10.1016/j.jclepro.2013.07.059 DOI: https://doi.org/10.1016/j.jclepro.2013.07.059
Ioannou, I., & Serafeim, G. (2015). The Impact of Corporate Social Responsibility on Investment Recommendations: Analysts' Perceptions and Shifting Institutional Logics. Strategic Management Journal, 36(7), 1053–1081. https://doi.org/10.1002/smj.2268 DOI: https://doi.org/10.1002/smj.2268
Jo, H., & Harjoto, M. A. (2011). The Causal Effect of Corporate Governance on Corporate Social Responsibility. Journal of Business Ethics, 106(1), 53–72. https://doi.org/10.1007/s10551-011-1052-1 DOI: https://doi.org/10.1007/s10551-011-1052-1
Khan, M., Serafeim, G., & Yoon, A. (2016). Corporate Sustainability: First Evidence on Materiality. The Accounting Review, 91(6), 1697–1724. https://doi.org/10.2308/accr-51383 DOI: https://doi.org/10.2308/accr-51383
Mallin, C. A., & Michelon, G. (2011). Board Reputation Attributes and Corporate Social Performance: An Empirical Investigation of the US Best Corporate Citizens. Accounting and Business Research, 41(2), 119–144. https://doi.org/10.1080/00014788.2011.550740 DOI: https://doi.org/10.1080/00014788.2011.550740
Michelon, G., Pilonato, S., & Ricceri, F. (2015). CSR Reporting Practices and the Quality of Disclosure: An Empirical Analysis. Critical Perspectives on Accounting, 33, 59–78. https://doi.org/10.1016/j.cpa.2014.10.003 DOI: https://doi.org/10.1016/j.cpa.2014.10.003
Ntim, C. G., & Soobaroyen, T. (2013). Corporate Governance and Performance in Socially Responsible Corporations: New Empirical Insights from a Neo-Institutional Framework. Corporate Governance: An International Review, 21(5), 468–494. https://doi.org/10.1111/corg.12026 DOI: https://doi.org/10.1111/corg.12026
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Dr. Shaifali
This work is licensed under a Creative Commons Attribution 4.0 International License.
With the licence CC-BY, authors retain the copyright, allowing anyone to download, reuse, re-print, modify, distribute, and/or copy their contribution. The work must be properly attributed to its author.
It is not necessary to ask for further permission from the author or journal board.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
