Project Report on The Role of Corporate Governance in Enhancing Business Sustainability

Abstract

Corporate governance has become a central concern for organizations seeking to balance profitability with long-term sustainability. This study investigates the role of corporate governance in enhancing business sustainability, with a particular focus on listed and non-listed firms in Bangladesh. Using a structured questionnaire, data were collected from 50 respondents, including board members, executives, and compliance officers across various industries. The study analyzed governance mechanisms such as board independence, audit committees, diversity, disclosure, and ESG integration, alongside sustainability practices spanning environmental, social, and economic dimensions. The findings reveal that while governance structures exist in most firms, their effectiveness is often compliance-driven rather than strategically aligned with sustainability objectives. Strengths were observed in board independence, audit committees, and adherence to the BSEC Corporate Governance Code, but weaknesses emerged in board diversity, ESG oversight, and director training. Sustainability practices were moderately adopted, with greater emphasis on economic benefits, such as cost savings and reputation enhancement, while environmental and supply chain practices remained underdeveloped. Stakeholder engagement scored highest, highlighting the influence of international investors and buyers in shaping ESG adoption. However, perceptions of governance impact on sustainability outcomes were the lowest, suggesting a gap between formal governance structures and practical effectiveness. The study concludes that corporate governance in Bangladesh is evolving, but stronger integration of sustainability into governance frameworks, improved enforcement, and capacity building are required to achieve meaningful progress.