Configurations of Corporate Governance Mechanisms and Sustainable Development: A Review
Corporate governance environmental governance metrics social sustainable development Faculty Research Paper Journal Article Faculty Article Faculty Research Article Research Article
2026
This review examines the configurations of corporate governance mechanisms and their influence on sustainable development outcomes. Drawing on critical theoretical frameworks, including agency theory, stakeholder theory and resource dependence theory, the review explores how board composition, executive compensation and ownership structures impact environmental, social and governance performance. By addressing cultural, regulatory and industryspecific contexts, this article highlights how these factors shape the effectiveness of governance mechanisms in promoting sustainability. Methodological choices are discussed, with attention to the limitations of excluding non-empirical and non-firm-level studies. The review also underscores the need for greater inclusion of participatory governance and community engagement practices to drive meaningful sustainability outcomes. Case studies and examples illustrate practical applications of these governance mechanisms in diverse settings. The review concludes by identifying critical research gaps. It offers recommendations for future studies, emphasising the need for longitudinal and mixed-method approaches to deepen understanding of governance’s role in sustainable development. These findings provide actionable insights for scholars, practitioners and policymakers seeking to enhance corporate governance to support global sustainability goals.
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