Fostering Sustainability in Corporate Governance: Analysis of the EU Sustainable Corporate Governance and Due Diligence Directives (SIDREA Series in Accounting and Business Administration)

The effects of climate change on the one hand, and government promises to achieve sustainable development on the other, are only two examples of the factors driving businesses to incorporate sustainability into their business strategies. International organizations and researchers alike contend that incorporating sustainability into business is only feasible when governance also considers environmental, social and governance (ESG) issues. Therefore, corporate governance is attracting more and more attention from investors and various stakeholders. On 23 February 2022, the European Commission adopted a proposal for a Directive on corporate sustainability due diligence. The aim of this Directive is to foster sustainable and responsible corporate behaviour and to anchor human rights and environmental considerations in companies’ operations and corporate governance. Drawing on the theoretical framework of corporate governance and an analysis of the latest and most important literature on corporate governance and sustainability, this book offers essential insights, particularly in light of the Sustainable Corporate Governance Directive and Due Diligence Directive. Preface Contents Abbreviations Chapter 1: Corporate Governance and Strategic Management 1.1 Introduction 1.2 Research Theories 1.2.1 Managerial Theory 1.2.2 Agency Theory 1.2.3 Stakeholder Theory 1.2.4 Resource Dependency View 1.2.5 Stewardship Theory 1.2.6 Socio-emotional Wealth 1.3 The Governance Model 1.3.1 UK Model 1.3.2 German Model 1.3.3 The Italian System 1.4 Control Systems References Chapter 2: Corporate Governance and Sustainability 2.1 Introduction 2.2 Theories 2.3 Methodology 2.4 Corporate Governance and Sustainability 2.4.1 Corporate Governance and Sustainability in Management and Accounting Studies 2.5 Recent Literature on the Topic 2.5.1 Accountability 2.5.2 Governance and Non-financial Reporting and Performance 2.5.3 Governance Structure 2.5.4 Focus CSR Committee References Chapter 3: The Current Scenario on Sustainable Corporate Governance: Theoretical and Practical Evidence 3.1 Introduction 3.2 Sustainability and Codes of Conduct 3.3 European Harmonization Policies and Corporate Governance Directive 3.4 European Union and Sustainability 3.5 EU Sustainable Corporate Governance 3.6 Corporate Sustainability Due Diligence Proposal 3.6.1 Consultation 3.6.2 Provisions 3.6.3 Scope of the Obliged Subjects 3.6.4 Content of the Directive 3.6.5 External Monitoring and Sanctions 3.7 Final Comments References Chapter 4: Human Rights Due Diligence and Corporate Governance: A European Analysis 4.1 Introduction 4.2 Human Rights-Related Disclosure 4.2.1 Human Rights Due Diligence 4.3 Research Aim 4.4 Methods 4.4.1 Sample 4.4.2 Methodology 4.4.3 Variables 4.5 Results 4.6 Discussion of the Results References Chapter 5: Conclusion Remark 5.1 First Results on Sustainable Corporate Governance and Due Diligence 5.2 Corporate Governance Challenges and Future Perspectives