The impact of corporate governance on the sustainable development of agricultural enterprises
Year: 2024
Type: article
Abstract: The article is dedicated to studying corporate governance’s impact on enterprises’ sustainable development. The article aims to analyze corporate governance’s influence on enterprises’ sustainable development and identify the key mechanisms and principles that contribute to integrating environmental, social, and governance aspects into their strategies. The article examines the role of corporate governance as a key tool for ensuring the sustainable development of enterprises in the face of modern global challenges: climate change, digitalization, and market globalization. The study identifies the main principles of corporate governance: transparency, accountability, respect for the rights of shareholders and stakeholders, and responsible risk management. It is revealed that effective corporate governance optimizes enterprises’ internal processes and contributes to the integration of sustainable business models that comply with international standards. The research shows that every sector of economics has specific features that require special attention to environmental and social responsibility. At the same time, the high level of risks related to conditions of the eternal environment and market fluctuations necessitates implementing risk management strategies such as production diversification, project insurance, and climate change adaptation. The importance of corporate governance in the context of sustainable development of enterprises is confirmed in the works of leading researchers who emphasize its impact on the institutional environment, resource utilization, and environmental responsibility. Implementing ESG (Environmental, Social, and Governance) principles can significantly improve the image of enterprises, increase their investment attractiveness, and minimize regulatory risks. The introduction of corporate governance will allow enterprises to achieve several important results: improving financial performance, optimizing costs, and increasing productivity through the application of modern methods of strategic planning and cost control, ensuring environmental sustainability and rational use of resources through the implementation of ESG principles and environmental standards, creating a positive corporate image through transparency of governance, enhancing social responsibility, involving communities in sustainable development, and creating conditions for long-term growth and adaptation to changes in the external environment through the use of digital technologies and analytical tools. Keywords: sustainable development, corporate governance, ESG principles, economic stability, environmental sustainability, social responsibility.
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4407870549