Sustainable finance and the role of corporate governance in preventing economic crimes

Develay, E and Giamporcaro, S ORCID: https://orcid.org/0000-0002-1150-4939, 2023. Sustainable finance and the role of corporate governance in preventing economic crimes. In: Dion, M, ed., Sustainable finance and financial crime. Cham: Springer. ISBN 9783031287510 (Forthcoming)

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Abstract

Despite the growing popularity of sustainable finance and the emergence of an industry dedicated to solving urgent global problems while making profits, highprofile corporate governance failures do not appear to slow down. In 2018, Abraaj, a well-known figure in impact investing, collapsed after its CEO was arrested for fraud and misappropriation of funds. Similarly, in 2020, Boohoo, a previously reputable online fashion retailer, faced intense scrutiny over work slavery that ended up being the subject of a UK parliament inquiry and lost support from responsible investors. This chapter proposes to go back to these two recent high-profile cases to discuss the extent to which the lack of accountability, ethics, and corporate governance might be conducive to economic crimes and detrimental to investors willing to embrace the principles of sustainable finance. Then, the concept of sustainable corporate governance is introduced, and a discussion of its implications for the fields of corporate governance and criminology is provided. Finally, two incentive alignment mechanisms promoting sustainable corporate governance, CSR committees and CSR contracting, are presented to help align executives’ interests with those of all legitimate stakeholders. This chapter contributes to the literature on corporate governance and criminology by examining the role of a more sustainable governance in preventing and deterring economic crimes.

Item Type:	Chapter in book
Creators:	Develay, E. and Giamporcaro, S.
Publisher:	Springer
Place of Publication:	Cham
Date:	4 May 2023
ISBN:	9783031287510
Identifiers:	Number Type 10.1007/978-3-031-28752-7 DOI 1768249 Other
Divisions:	Schools > Nottingham Business School
Record created by:	Laura Ward
Date Added:	19 Jun 2023 08:32
Last Modified:	19 Jun 2023 08:32
URI:	https://irep.ntu.ac.uk/id/eprint/49213

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