Corporate sustainability governance: Insight from the Australian and New Zealand port industry

Abstract

Since ports generate a range of negative externalities it is becoming increasingly important for them to engage with their stakeholders effectively through a corporate sustainability strategy which seeks to obtain stakeholder legitimacy for port operations. Yet, the link between a sustainability strategy and the accomplishment of business goals is unclear in some contexts. Hence, the first aim of this study was to conceptually develop a sustainability governance framework to understand the potential contribution of a corporate sustainability strategy for the achievement of broader corporate objectives for ports. The second aim was to undertake an empirical analysis to assess the level of adoption of multiple sustainability strategy components by ports in Australia and New Zealand. The results suggest that the port industry in this region is currently only commencing on its sustainability path. While the industry is relatively advanced in the adoption of general good governance and environmental governance practices, stakeholder awareness and engagement, including sustainability performance disclosure remains limited. The developed conceptional framework provides insights into the elements of corporate sustainability governance and may be used as a guide by ports and other corporate institutions dealing with the challenges of sustainable corporate development. Furthermore, the study offers suggestions for strategies to improve existing sustainability governance of ports in Australia and New Zealand.