Corporate Governance and Social Responsibility in Emerging Economies

Corporate governance and social responsibility intersect in emerging economies through a dynamic interplay of institutional voids, regulatory evolution and stakeholder demands. Firms operating in these contexts often contend with uneven enforcement, political embeddedness and varying levels of market maturity, prompting novel governance models that integrate compliance mechanisms with voluntary corporate social responsibility (CSR) initiatives. Board composition, the presence of independent directors and transparent disclosure practices have emerged as critical levers for enhancing accountability and mitigating agency costs. At the same time, CSR activities—ranging from environmental stewardship and community investment to employee welfare—are increasingly recognised as drivers of long-term value creation, risk management and reputational capital. Advances in digital reporting and information‐technology adoption have improved the quality and comparability of both financial and sustainability disclosures. Moreover, chief executive characteristics, from duality in roles to career trajectories, shape the nexus between financial performance and CSR outcomes. Across diverse settings such as China, India, Brazil and Bangladesh, firms are experimenting with integrated governance frameworks that align ESG (environmental, social and governance) metrics with strategic objectives. These innovations not only inform policy and regulatory reforms but also contribute to broader sustainable development goals by fostering resilient, socially responsible corporate ecosystems.

Research from Nature Portfolio

No recent Nature Portfolio content available.

Corporate Governance and Social Responsibility in Emerging Economies publication trend

The graph below shows the total number of articles in corporate governance and social responsibility in emerging economies across all publications each year (not limited to Nature Index journals).

Technical terms

Agency cost: The expense arising from conflicts of interest between management and shareholders, often mitigated by governance mechanisms such as independent directors.

Corporate governance: The system of rules, practices and processes by which a firm is directed and controlled, balancing stakeholder interests and ensuring accountability.

Corporate social responsibility (CSR): Voluntary corporate actions that address environmental, social and ethical impacts beyond statutory requirements.

Financial disclosure quality: The accuracy, completeness and timeliness of financial information provided by firms to stakeholders.

Political embeddedness: The extent to which firms are connected to political actors or institutions, influencing resource access and disclosure practices.

Sustainability disclosure: Corporate reporting on environmental, social and governance performance, often guided by frameworks such as the Global Reporting Initiative.

References

1. Do Chief Executives Matter in Corporate Financial and Social Responsibility Performance Nexus? A dynamic Model Analysis of Chinese Firms. Frontiers in Psychology (2022).
2. The impact of environmental disclosure and the quality of financial disclosure and IT adoption on firm performance: Does corporate governance ensure sustainability?. Frontiers in Environmental Science (2023).
3. Financial disclosure quality and sustainability disclosure quality. A case in China. PLOS ONE (2021).