How governance structures and CSR committee drive sustainable outcomes: evidence from Indian corporations
摘要
The purpose of this article is to look at how corporate governance attributes (gender diversity, independence, size, audit committee meetings) and the CSR sustainability committee affect corporate sustainability practices. The article uses a dynamic panel data regression analysis covering a period of 2010-11 to 2021-22 to investigate how these governance attributes influence ‘environmental, social, and governance [ESG]’ performance, using data from several databases. The outcomes of a dynamic panel regression analysis using GMM show that audit committee meetings and CSR sustainability committees have a significant positive impact on the ESG score. In addition, key control variables such as age, profitability, and liquidity have a positive impact on corporate sustainability practices. However, leverage is found to have a negative impact on ESG performance. These findings imply that stakeholders should be well-informed before investing in long-term debt because a bad decision may eventually lead to a decrease in the corporation’s ESG reporting and practices. The report also exhorts policymakers to carefully consider the role of independent directors because too much independence could unintentionally harm corporate sustainability initiatives. As a result, this study provides valuable information to policymakers and corporate decision-makers seeking to improve ESG practices.