Internal corporate governance strength as a mechanism for achieving sustainable development goals

Abstract

AbstractThis paper explores the strength of internal corporate governance as a determining factor in a firm's addressing the sustainable development goals (SDGs) proposed by the United Nations. Using a European sample of analysis from 2016 to 2017, the paper examines CEO independence, board composition and board attendance as internal corporate governance factors that affect a firm's commitment to sustainable development. By employing several regression analyses, the evidence supports the assertion that greater corporate governance strength, from an internal perspective, increases the propensity to report SDGs in firms' sustainability reports. In addition, results confirm that CEO non‐duality and board independence act individually as determinants of a firm's contribution to the 2030 Agenda.