The Dynamics of Corporate Governance and Sustainability: A Study of the Indian Electricity Generation Industry

Abstract

This paper aims to reflect on the relationship between corporate governance and sustainability. Specifically, it aims to gain insights into the relationship between board structure, disclosure, related party transactions, shareholder rights, and board procedure and sustainability performance – economic performance, environmental performance and social equity performance - for the companies in the Indian Electricity Generating Industry. For the study, 286 companies from among the 402 companies listed in CMIE – PROWESS database for the industry were targeted. Although the aim was to take data from all 402 companies, complete data on the directors were available for only 286 companies from the Registrar of Companies. The study covers detailed analysis of corporate governance in these companies based on established theory and the structure of sustainability established. In the end, the positive relationships are summarized and implications for theory are discussed.

Keywords: Corporate Governance, Sustainability, Environment, Economic Performance, Social Equity

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