ESG Strategy Through the Integrated Business Model in Congruence with Circular Economy: Does Independent Board Members Matter?

Abstract

The purpose of this study is to examine the impact of the integrated Business Model disclosures on the financial performance of the top 30 Malaysian PLCs, moderated by a 50% presence of Independent Board of Directors as proposed by the Malaysian Code of Corporate Governance 2017 (MCCG 2017). The paper’s design will adhere to the purposive sampling methodology, utilizing descriptive statistics, multiple regression analysis, and quantitative content analysis derived from the International Integrated Reporting Council (IIRC)’s Integrated Report, along with previous studies. This approach aims to analyze the annual reports and integrated reports, aiming to explore the Integrated Business Model disclosures within the top 30 Malaysian PLCs. The originality of this paper lies in the design of the new Independent Board of Directors Scoring Index, which aims to identify the best disclosures among the top 30 Malaysian PLCs. This scoring index could prove beneficial to both academicians and practitioners, extending its utility beyond the Top 30 PLCs. The study serves as a systematic review of recent research developments in Integrated Business Model disclosures within the Integrated Report and the Annual Reports of the top 30 Malaysian PLCs.
 Keywords: ESG, Circular Economy, Governance, Integrated Report, Business Model, Independent Board of Directors