Research Themes And Theoretical Connections Between Corporate Governance And ESG

Abstract

Corporate companies' integration of Environmental, Social, and Governance (ESG) in their regular business activities is gaining importance. Researchers got promoted to explore the connections between ESG and existing corporate governance frameworks. This studyattempts to identify the theoretical connections and critical research areas through a comprehensive literature review. By analyzing various studies employing various approaches, the review examines howgovernance mechanisms – including board composition, executive compensation, shareholder rights, ownership structures, and transparency practices – influence ESG implementation and performance. The analysis identifies theoretical frameworks that underpin these connections, highlighting themes like agency theory, stakeholder theory, and resource dependence theory. Furthermore, the review synthesizes emerging research avenues, suggesting potential future directions for exploring the intersection of corporate governance and ESG. This comprehensive analysis offers valuable insights for academics, practitioners, and policymakers seeking to understand the evolving dynamics of responsible business practices and inform impactful strategies for advancing corporate sustainability.