Sustainability Through Corporate Governance

The topic of sustainability is a factor of cultural and operational change that affects the entire business world, regardless of their nature and size, pushing the development of more adequate corporate governance models. Indeed, among the ESG criteria, governance is relevant in relation to the positive impact on the company life cycle. Integrating sustainability within corporate governance systems involves the definition of bodies, rules and processes that allow the company to effectively manage its social and environmental impact. This allows to acquire the ability to identify and analyze the opportunities and risks related to social trends, as well as to activate the decision-making processes necessary to align corporate activities with these trends. This chapter starts from a definition of ESG criteria and then focuses on governance as a relevant factor of corporate sustainability. The chapter continues with an analysis of the aspects that concern the assumption of decisions around sustainability and the governance solutions that allow their implementation. The chapter concludes with a reference to the main questions still open in the literature.