The impact of sustainable board capital on sustainability reporting

Abstract

Purpose

This aim of this paper is to prove that the diversity of board capital is a significant driver of corporate governance. Board capital has increasingly been identified as a key part of governance mechanism that assists businesses to improve their sustainability reporting practices and sustainability performance. In addition, board capital has been recognized as being key to the development of good corporate governance in the private and public sectors.

Design/methodology/approach

The paper discusses whether the diversity of board capital is a significant driver of corporate governance.

Findings

This paper suggests that the best mixture of board capital for an individual company should be varied between industries and business models. Effective corporate governance assists in the attainment of high-level sustainability and financial performance, which, in turn, bolsters corporate reputation.

Practical implications

This paper presents new strategic insights into diversity of board capital that is pivotal to global leading companies in preparing their sustainability reports.

Originality/value

This paper justifies the need of diversity in board capital because it is one of the means to build strong corporate governance based on the stakeholders’ expectations and interests, and to create greater public trust and the prospects of the respective business.

Citation

Ngu, S.B. and Amran, A. (2019), "The impact of sustainable board capital on sustainability reporting", Strategic Direction, Vol. 35 No. 12, pp. 8-11. https://doi.org/10.1108/SD-05-2019-0098