INTEGRATING SUSTAINABILITY INTO CORPORATE GOVERNANCE: MALAYSIAN PERSPECTIVES

Abstract

Corporate governance and corporate sustainability disclosure are two integral components of modern business operations that have gained significant attention in recent years. Corporate governance encompasses the framework of rules, practices, and processes by which a company is directed and controlled, ensuring accountability, transparency, and ethical decision-making. On the other hand, corporate sustainability disclosure involves the transparent reporting of a company's environmental, social, and governance (ESG) performance, demonstrating its commitment to responsible and sustainable business practices. The Covid-19 pandemic has clearly shown that sustainability in the form of stable value chains and social responsibility is a decisive corporate success factor. Sustainable action influences a company's reputation and has a positive effect on the company value by promoting transparency, accountability, and responsible decision-making. In addition, by integrating sustainability disclosure into corporate governance practices, companies can demonstrate their commitment to ethical conduct, responsible management, and the creation of long-term value for all stakeholders. This ultimately contributes to a more sustainable and equitable business environment. The United Nations has promoted and strategized for sustainable development, aiming to enhance ethical and moral understanding, as well as raise awareness about the significance of environmental and social responsibility, alongside economic expansion. The United Nations implemented the Sustainable Development Goals (SDGs) as a strategic plan for action from 2015 to 2030. Hence, this paper aim is to shed light on how corporate governance literature that considers sustainability has evolved. The implication of this study not just to extend literature but also to provide a new beginning and an idea for the recent development in corporate governance and sustainability disclosure especially in Malaysia.