Although an extensive body of research treats the fields of corporate governance and sustainable development separately, less attention has been paid to the interaction between both fields. This paper attempts to bridge this gap by examining how corporate governance systems are evolving in order to integrate sustainable development thinking into them.
Drawing from corporate governance, sustainable development, and stakeholder theory literature, an analysis is performed of the governance systems of the 18 corporations that are leading the market sectors considered by the Dow Jones Sustainability World Index.
The results of our in‐depth analysis of the 18 cases are presented and the sustainable corporate governance model that emerges from that analysis is proposed.
This model does not attempt to question or replace the previous recommendation and frameworks suggested in the literature on corporate governance and codes of governance. On the contrary, the model should be viewed as a way of integrating sustainable development/corporate responsibility into the fabric of already existing governance models suggested elsewhere.
The suggested model seems to be a good framework both for managers and for researchers because it can be used to improve the firm's governance systems as well as a guide for future research on sustainable corporate governance.
