Sustainability Reporting from the Perspective of Corporate Governance and its Measurement: Concepts, Theories, and Theoretical Perspectives
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

Sustainability Reporting from the Perspective of Corporate Governance and its Measurement: Concepts, Theories, and Theoretical Perspectives

Document Type : Original Article

Authors
1 Associate Professor, Department of Accounting, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran
2 Ph.D. Student, Department of Accounting, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran
Abstract
According to previous studies, sustainability reporting encompasses four main dimensions: economic, environmental, social, and corporate governance. Corporate governance, being a crucial aspect of sustainability reporting, serves to align the interests of shareholders with those of other stakeholders, while maintaining a balance between economic, environmental, and social concerns. Ultimately, the primary objective of corporate governance is to safeguard the rights of all stakeholders, including minority shareholders. This research, which adopts an exploratory approach, delves into the concepts, theories, and theoretical perspectives of sustainability reporting through the lens of corporate governance. The study also explores the measurement of sustainability reporting using a meta-synthesis method. Analysis of existing literature revealed that sustainability reporting aims to hold companies accountable to stakeholders and achieve fairness and environmental efficiency. Furthermore, the study identified three key drivers and components of corporate governance namely, board structure, audit committee characteristics, and ownership structure within sustainability reporting. The roles of these components were examined, along with the impact of corporate governance drivers on the quality of sustainability reporting. Additionally, various theories supporting or challenging sustainability practices, such as stakeholder theory, legitimacy theory, political economy theory, signaling theory, resource-based theory, representation theory, and managers' opportunism theory, were discussed. The findings of the research suggest that effective corporate governance drivers can enhance sustainability performance.
Keywords
Subjects

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