Corporate Governance

Corporate governance (CG) and corporate social responsibility (CSR) are two sets of processes and structures that allow the organization to regulate and oversee its activities. This contribution explores the interplay among them. The academic literature has proposed various definitions of corporate governance, yet the boundaries of the duties and responsibilities of directors have not been uniquely defined. These definitions can be placed on a continuum of theories, perspectives and focuses. Despite the definition chosen, we can identify several essential features of corporate governance: value creation, adequate and appropriate system of internal controls in place; no single individual should have too much power; transparency and accountability; and relationships between the company’s management, the board of directors, shareholders and other stakeholders. In sum, the interplay between corporate governance mechanisms and CSR/CSR reporting still deserves future investigation in the light of the prominent challenges that multiple-stakeholder governance and a more stakeholder-oriented view of the companies can have on financial and non-financial reporting systems.