Sustainable Corporate Governance: A Way Forward

Sustainable Corporate Governance: A Way Forward

Florian Moeslein, Karsten Engsig Sørensen

Series number :

Serial Number: 
583/2021

Date posted :

April 29 2021

Last revised :

April 29 2021
SSRN Share

Keywords

  • Corporate governance • 
  • regulatory instruments

The recently published ‘Study on directors’ corporate governance duties and sustainable’ prepared by Ernst and Young for the European Commission (EY report) has attracted many comments, largely critical.

Despite all the justified criticism of the EY report, the potential of company law to make companies more sustainable should not be overlooked. In this article, we advocate the use of procedural regulatory instruments, such as disclosure or consultation requirements. Since the impact of procedural rules on sustainable governance is hard to predict, we also advocate a regulatory mix that may have a combined positive impact. Different procedures may affect different areas of the business of a company. Even if it is challenging to calibrate the variety of potential regulatory instruments, such a mix seems to be the best way forward at this point in time.

Published in

Published in: 
Publication Title: 
European Company Law, Forthcoming

Authors

Professor
Real name:
Karsten Engsig Sørensen
Aarhus School of Business and Social Sciences