Building Global Resilience through Responsible Governance, ESG Performance and Business Performance Dinalestari Purbawati, Tarmizi Achmad, Surya Raharja, Rangga Almahendra
Universitas Diponegoro, Universitas Gadjah Mada
Abstract
The environmental, social and governance (ESG) focused board oversight has no longer been a voluntary disclosure that should be disclosed but a part of the board work. One of the conspicuous governance responses is creating board level ESG committees, committees on sustainability or CSR. However, the conflicting empirical evidence exists. The research that raises ESG scores, quality of disclosure or materiality fit is reported in many studies but results on profitability and market value are weaker and depend on the context. This PRISMA 2020 is based on this systematic literature review of (1) the association between ESG committees and ESG performance, (2) the presence or absence of association between ESG committees and business or financial performance, and (3) how and why differences are likely to appear where and how. On the whole, the literature is more uniformly upstream in terms of relationship between committee presence and more that committee quality to ESG outcomes as compared to a direct relationship between committee quality and financial outcome. When it comes to financial implications, they tend to go through the quality of implementing, credibility of disclosure (including assurance) and the institutional environment in which ESG information is prepared and evaluated (Aini et al., 2025- Peters and Romi, 2015). The review concludes by practical implication on the design of committees and the research agenda that emphasizes more on identifying causality and extensive measures of what in fact committees do.
Topic: Responsible Digital Entrepreneurship: Fostering Sustainable Business Ecosystems through Innovation and Ethical Governance (Digital Entrepreneurship- Sustainable Ecosystems- Business Innovation)
