Corporate Social Responsibility,Corporate Governance and Sustainability: Synergies and Inter-relationships

Abstract

This paper seeks to explore the association between corporate social responsibility, corporate governance and sustainability by empirically studying the interrelationship between these through correlation analysis. Findings from the study revealed that (a) a very low negative insignificant correlation exists between corporate social responsibility and corporate governance; (b) a positive low and insignificant correlation is observed between corporate governance and sustainability; and (c) significant correlation is found between corporate social responsibility and sustainability. The study recommends theme of corporate social responsibility and sustainability should be embedded within the governance practices of the firms. A separate board committee on sustainability and mandatory reporting on its activities should be formed to facilitate transparent disclosures on corporate social responsibility and sustainability practices. Mandatory reporting on corporate social responsibility and sustainability along with reporting on Clause 49 of the Listing Agreement norms will augment the quality of information available to stakeholders in terms of economic, environmental and social performance of firms.