Green Corporate Governance and Environmental Disclosure
Strong governance frameworks are essential for effective environmental reporting, especially green corporate governance, which integrates environmental factors into decision-making. By bringing operations into line with sustainability objectives, this strategy enhances stakeholder confidence, ri...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
OPRA publications
2025
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/47345/3/Green%20Corporate%20Governance%20-%20Copy.pdf http://ir.unimas.my/id/eprint/47345/ https://www.multiresearchjournal.com/arclist/list-2025.5.1/id-3649 |
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| Summary: | Strong governance frameworks are essential for effective
environmental reporting, especially green corporate
governance, which integrates environmental factors into
decision-making. By bringing operations into line with
sustainability objectives, this strategy enhances stakeholder confidence, risk management, and transparency.
Government programs in Malaysia encourage green
governance by pushing businesses to use sustainable
practices and improve environmental disclosure, which
benefits both the environment and business. Agency theory
supports the idea that a green corporate governance
framework reduces agency costs by aligning shareholders'
and managers' interests, fostering greater environmental
transparency. Establishing environmental management
systems and committees can improve disclosure and reduce
conflicts of interest. Green governance research, still
emerging, emphasizes its role as a strategy for sustainable
resource management and its commitment to long-term
ecological, economic, and social sustainability. Studies
show that companies adopting green technologies,
Environmental, Social, and Governance (ESG) policies, and
environmental management systems are more likely to
disclose environmental impacts. Furthermore, stakeholder
engagement, director compensation linked to environmental
performance, and financial factors like leverage and
company size also influence environmental disclosure
practices. |
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