Published Online:April 2025
Product Name:The IUP Journal of Corporate Governance
Product Type:Article
Product Code:IJCG020425
DOI:10.71329/IUPJCG/2025.24.2.29-48
Author Name:Raghuveer Katragadda, Sree Ram Atluri and P V Kesava Rao
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:29-48
The study explores the relationship between corporate governance (CG) indicators and sustainability practices in Indian firms, with a focus on environmental, social, and economic dimensions. Using panel regression models, the study analyzes data from the top 10 Nifty 50 firms between 2017 and 2024. The findings reveal a significant positive correlation between CG and corporate sustainability, where sales and profit after tax impact CSR expenditures, while promoter shareholding and return on capital employed (ROCE) show no significant effect. The study underscores the role of CG in promoting transparency, accountability, and responsible business practices, ultimately enhancing long-term sustainability. The study highlights key governance variables such as board composition, ownership structure, and transparency in disclosures as crucial determinants of sustainability. It also provides practical insights for policymakers, investors, and corporate leaders, emphasizing the need for stricter regulations and incentives for businesses to adopt sustainable practices. Additionally, the study contributes to the theoretical discourse on CG and sustainability by integrating perspectives from Agency Theory, Stakeholder Theory, and Legitimacy Theory. While the study focuses on large-cap firms, it identifies research gaps in sector-specific governance and digital transformation impacts on sustainability, paving the way for future investigations.
In the contemporary linked landscape, enterprises encounter growing demand to conduct operations responsibly, including the resolution of social and environmental problems (Miao et al., 2023).