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Purpose in Corporate Governance: The Path towards a More Sustainable World

Author

Listed:
  • Joan Enric Ricart

    (Strategic Management, IESE Business School, Avenida Pearson, 21, 08034 Barcelona, Spain)

  • Carlos Rey

    (Strategic Management, Universitat Internacional de Catalunya, c/Inmaculada, 22, 08017 Barcelona, Spain)

Abstract

In order to give a more realistic view of how ESG and sustainability are developed in organisations, this paper explores the development of purpose in corporate governance and the challenges faced. The theme is analysed at the intersection between stakeholder theory and business models in two dimensions: the capability of the market to align stakeholders’ interests (invisible hand) and the trade-offs between purpose and profit. The analysis conducted gave rise to four scenarios with a range of theoretical and practical implications focused on corporate governance.

Suggested Citation

  • Joan Enric Ricart & Carlos Rey, 2022. "Purpose in Corporate Governance: The Path towards a More Sustainable World," Sustainability, MDPI, vol. 14(8), pages 1-11, April.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:8:p:4384-:d:788533
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    References listed on IDEAS

    as
    1. Alvaro Lleo & Miquel Bastons & Carlos Rey & Fernando Ruiz-Perez, 2021. "Purpose Implementation: Conceptualization and Measurement," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    2. Colin Mayer, 2021. "The Future of the Corporation and the Economics of Purpose," Journal of Management Studies, Wiley Blackwell, vol. 58(3), pages 887-901, May.
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    4. Claudine Gartenberg & Andrea Prat & George Serafeim, 2019. "Corporate Purpose and Financial Performance," Organization Science, INFORMS, vol. 30(1), pages 1-18, February.
    5. Pablo Cardona & Carlos Rey, 2022. "Management by Missions," Springer Books, Springer, edition 2, number 978-3-030-83780-8, April.
    6. Abdulrahman Jbaily & Xiaodan Zhou & Jie Liu & Ting-Hwan Lee & Leila Kamareddine & Stéphane Verguet & Francesca Dominici, 2022. "Air pollution exposure disparities across US population and income groups," Nature, Nature, vol. 601(7892), pages 228-233, January.
    7. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 983-1028, December.
    8. Baabou, Wafaa & Grunewald, Nicole & Ouellet-Plamondon, Claudiane & Gressot, Michel & Galli, Alessandro, 2017. "The Ecological Footprint of Mediterranean cities: Awareness creation and policy implications," Environmental Science & Policy, Elsevier, vol. 69(C), pages 94-104.
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    Cited by:

    1. Ryoichi Arai & Shinichi Hirota, 2023. "Profitability or Longevity? Cross-Country Variations in Corporate Performance," Sustainability, MDPI, vol. 15(10), pages 1-29, May.
    2. Lainé, Michael, 2023. "How to reconcile actual climate change mitigation with prosperity? A proposal," Ecological Economics, Elsevier, vol. 204(PA).
    3. Shauhrat S. Chopra & Sachini Supunsala Senadheera & Pavani Dulanja Dissanayake & Piumi Amasha Withana & Rajeev Chib & Jay Hyuk Rhee & Yong Sik Ok, 2024. "Navigating the Challenges of Environmental, Social, and Governance (ESG) Reporting: The Path to Broader Sustainable Development," Sustainability, MDPI, vol. 16(2), pages 1-14, January.
    4. Eduardo Flores & Douglas Augusto De Paula & Joelson de Oliveira Sampaio, 2022. "Business Students Expectations of Brazilian Corporate Governance: Insights for a Sustainable Path in an Emerging Business Environment," Sustainability, MDPI, vol. 14(14), pages 1-19, July.
    5. Michael Lainé, 2023. "How to reconcile actual climate change mitigation with prosperity? A proposal," Post-Print hal-04265121, HAL.

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