Relationship Between Corporate Governance and Corporate Sustainability Performance: A Critical Review

This paper aims to review the inconsistencies that occur in research on corporate sustainability performance (CSP) when it is associated with corporate governance in several countries in the world to try to identify the factors causing the inconsistency. Several studies on the relationship between Corporate Governance and Corporate Sustainability around the world are found to be more common in developed countries than in developing countries. In fact, the context and culture of a country can affect the research results obtained. This paper also explains that research relating corporate governance with Corporate Sustainability Performance in developed countries is mostly based on agency theory, as is indeed the case in many Anglo-American countries, such as the US and the UK. This paper argues that research on the relationship between Corporate Governance and Corporate Sustainability Performance should pay more attention to the sample data used as the object of research, the research methods used, clear and strong grand theory references, as well as clustering the type of company industry, so that it is expected to minimize inconsistencies.