Business Sustainability in Asia

CHAPTER 6Governance Dimension of Sustainability

1. EXECUTIVE SUMMARY

The financial economic dimension of sustainability performance, reporting and assurance was discussed in chapter 5. Non-financial dimensions of sustainability performance and reporting including governance, social, ethical and environmental (GSEE) are presented in chapters 6–9. Regulators, investors and business organizations worldwide are now interested in more information about GSEE. Effective corporate governance can improve business sustainability, corporate culture, corporate strategic decisions, sustainable performance, reliable financial reports future prospects and growth. The existence and persistence of differences in global economic structure, financial systems and corporate environment causes countries to adopt their own corporate governance reforms and measures. However, globalization, cross-border trade and capital formation necessitate a convergence in corporate governance measures and regulatory reforms. The emerging global corporate governance reforms are shaping capital markets' structure worldwide and altering their competitiveness and the protection provided to investors. This chapter presents the governance dimension of sustainability performance, reporting and assurance worldwide and in Asia.

2. INTRODUCTION

A dynamic financial system, reliable financial information and effective corporate governance are essential for global economic development and growth. In the aftermath of the ...