Skip to main content

Sustainable Governance in Specific Settings of Listed and Unlisted Companies, SMEs, and Family Businesses

  • Chapter
  • First Online:
Sustainable Governance

Abstract

The chapter explores the transition from corporate governance to sustainable governance, providing a framework for understanding the changes for large companies, SMEs, and family businesses. It highlights the growing relevance of sustainable governance at the global level, with a focus on unlisted companies and SMEs, outlining the stages of its growth in these enterprises. Additionally, it presents a compelling case study of institutional and regulatory changes in the European context and their impact on sustainable governance practices in SMEs, as well as readiness of SMEs for upcoming regulation.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 99.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 129.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Abor, J., & Adjasi, C. K. D. (2007a). Corporate governance and the small and medium enterprises sector: Theory and implications. Corporate governance. The International Journal of Business in Society, 7, 111–122. https://doi.org/10.1108/14720700710739769

    Article  Google Scholar 

  • Abor, J., & Adjasi, C. K. D. (2007b). Corporate governance and the small and medium enterprises sector: Theory and implications. The International Journal of Business in Society, 7(2), 111–122.

    Google Scholar 

  • Adalessossi, K., & Utku, B. D. (2015). Financing difficulties of small and medium enterprises (SMEs) in the West African economic and monetary union (WAEMU) area. China-USA Business Review, 14(2), 79–99.

    Google Scholar 

  • Adnan, A. T. M., & Tandigalla, H. (2017). The dramatic shift in emphasis from a shareholder-dominated approach to a stakeholder-oriented corporate governance model. European Journal of Business and Economics, 2017, 12.

    Google Scholar 

  • Amran, A., Ooi, S. K., Mydin, R. T., & Devi, S. S. (2015). The impact of business strategies on online sustainability disclosures. Business Strategy and the Environment, 24, 551–564. https://doi.org/10.1002/bse.1837

    Article  Google Scholar 

  • Arcari, A. M. (2018). Preventing crises and managing turnaround processes in SMEs. The Role of Economic Measurement Tools, Management Control, 3, 131–155. https://doi.org/10.3280/MACO2018-003007

    Article  Google Scholar 

  • Bottenberg, K., Tuschke, A., & Flickinger, M. (2017). Corporate governance between shareholder and stakeholder orientation: Lessons from Germany. Journal of Management Inquiry, 2017(26), 165–180.

    Article  Google Scholar 

  • Brenes, E. R., Madrigal, K., & Requena, B. (2011). Corporate governance and family business performance. Journal of Business Research, 64(2011), 280–285.

    Article  Google Scholar 

  • Calace, D. (2014). Non-financial reporting in Italian SMEs: An exploratory study on strategic and cultural motivations. International Journal of Business Administration, 5(3), 34–48.

    Article  Google Scholar 

  • Cardoni, A., Kiseleva, E., & Bellucci, A. (2022). The quality of SMEs stakeholder communication during strategic crises: The case of Italian unlisted SMEs. Business Strategy and the Environment, 1–17. https://doi.org/10.1002/bse.3300

  • Cormier, D., & Magnan, M. (2015). The economic relevance of environmental disclosure and its impact on corporate legitimacy: An empirical investigation. Business Strategy and the Environment, 24, 431–450. https://doi.org/10.1002/bse.1829

    Article  Google Scholar 

  • Crossley, R. M., Elmagrhi, M. H., & Ntim, C. G. (2021). Sustainability and legitimacy theory: The case of sustainable social and environmental practices of small and medium-sized enterprises. Business Strategy and the Environment, 1(23), 3740–3762. https://doi.org/10.1002/bse.2837

    Article  Google Scholar 

  • Cuevas, C., Fafchamps, M., Hanson, R., Moll, P., & Srivastava, P. (1993). Case studies of enterprise finance in Ghana. Final report, Regional Program on Enterprise Development, The World Bank.

    Google Scholar 

  • Deeg, R. (2009). The rise of internal capitalist diversity? Changing patterns of finance and corporate governance in Europe. Economies et Societes, 2009(38), 552–579.

    Google Scholar 

  • Delmas, M. A., & Gergaud, O. (2014). Sustainable certification for future generations: The case of family business. Family Business Review, 27(3), 228.

    Article  Google Scholar 

  • Di Maggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organisational fields. American Sociological Review, 1983(48), 147–160.

    Google Scholar 

  • Dzomonda, O. (2022). Environmental sustainability commitment and access to finance by small and medium enterprises: The role of financial performance and corporate governance. Sustainability, 14, 8863. https://doi.org/10.3390/su14148863

  • EBA. (2020). EBA/GL/2020/06 - Guidelines on loan origination and monitoring. Retrieved May 06, 2023, from https://www.eba.europa.eu/regulation-and-policy/credit-risk/guidelines-on-loan-origination-and-monitoring

  • Esteban, B., Kryssia, M., & German, M. (2006). Family business structure and succession: Critical topics in Latin American experience. Journal of Business Research, 59(3), 372–374.

    Article  Google Scholar 

  • EU (European Union). (2022). Directive on Sustainability Reports (CSRD) 2022/2464. Retrieved May 06, 2023, from https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32022L2464

  • Fatoki, O. (2021). Sustainable finance and small, medium and micro enterprises in South Africa. Academy of Accounting and Financial Studies Journal, 25, 1–7.

    Google Scholar 

  • Hart O. (1995). Firms, contracts and financial structure. Oxford University Press.

    Google Scholar 

  • International Finance Corporation (IFC). (2019). Governance for SMEs sustainability and growth. Retrieved May 06, 2023, from https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/ifc+cg/resources/private+sector+opinion/governance+for+sme+sustainability+and+growth

  • Jayeola, O. (2015). The impact of environmental sustainability practice on the financial performance of SMEs: A study of some selected SMEs in Sussex. International Journal of Business Management and Economic Research, 2015(6), 214–230.

    Google Scholar 

  • King, R. G., & Levine, R. (1993). Finance, entrepreneurship and growth. Journal of Monetary Economics, 32, 1–30.

    Article  Google Scholar 

  • Klapper, L. F., & Love, I. (2004). Corporate governance, investor protection, and performance in emerging markets. Journal of Corporate Finance, 10(5), 703–728.

    Google Scholar 

  • Lai, A., & Stacchezzini, R. (2021). Organisational and professional challenges amid the evolution of sustainability reporting: A theoretical framework and an agenda for future research. Meditari Accountancy Research, 29(3), 405–429. https://doi.org/10.1108/MEDAR-02-2021-1199

    Article  Google Scholar 

  • Mariani, M. M., Al-Sultan, K., & De Massis, A. (2021). Corporate social responsibility in family firms: A systematic literature review. Journal of Small Business Management, 61, 1192. https://doi.org/10.1080/00472778.2021.1955122

    Article  Google Scholar 

  • Masocha, R., & Fatoki, O. (2018). The impact of coercive pressures on sustainability practices of small businesses in South Africa. Sustainability, 10, 3032.

    Article  Google Scholar 

  • Massa, L., Farneti, F., & Scappini, B. (2015). Developing a sustainability report in a small to medium enterprise: Process and consequences. Meditari Accountancy Research, 23(1), 62–91. https://doi.org/10.1108/MEDAR-02-2014-0030

  • McLarty, R., O’Dowd, S. (2023). Even small businesses need corporate governance. Management in practice. Ideas from the Yale School of Management. Retrieved January 13, 2023, from https://insights.som.yale.edu/insights/even-small-businesses-need-corporate-governance

  • Mishkin, F. S. (2001). The economics of money. In Banking and financial markets (p. 186, 6th ed.). Addison Wesley.

    Google Scholar 

  • Nasrallah, N., & El Khoury, R. (2022). Is corporate governance a good predictor of SMEs financial performance? Evidence from developing countries (the case of Lebanon). Journal of Sustainable Finance and Investment, 2022(12), 13–43.

    Article  Google Scholar 

  • Popoola, O. (2022). The impact of corporate governance on long term survival of small businesses in Canada. Journal of the International Council for Small Business, 2022, 1–9.

    Google Scholar 

  • Radebe, M. S. (2017). The benefits of good corporate governance to small and medium enterprises (SMEs) in South Africa: A view on top 20 and bottom 20 JSE listed companies. Problems and Perspectives in Management, 2017(15), 271–279.

    Google Scholar 

  • Romero, S., Ruiz, S., & Fernandez-Feijoo, B. (2018). Sustainability reporting and stakeholder engagement in Spain: Different instruments, different quality. Business Strategy and the Environment, 28, 221–232. https://doi.org/10.1002/bse.2251

    Article  Google Scholar 

  • Rossi, A., & Luque-Vílchez, M. (2020). The implementation of sustainability reporting in a small and medium enterprise and the emergence of integrated thinking. Meditari Accountancy Research, 29(4), 966–984. https://doi.org/10.1108/MEDAR-02-2020-0706

    Article  Google Scholar 

  • Sgrò, F., Palazzi, F., & Ciambotti, M. (2022). Business continuity and planning effectiveness: An empirical analysis of Italian manufacturing SMEs. Management Control, 3, 89–108. https://doi.org/10.3280/MACO2022-003005

    Article  Google Scholar 

  • Siebels, J. F., & Knyphausen-Aufseß, D. (2012). A review of theory in family business research: The implications for corporate governance. International Journal of Management Reviews, 14(3), 280–304.

    Article  Google Scholar 

  • Sprenger, C., & Lazareva, O. (2022). Corporate governance and investment-cash flow sensitivity: Evidence from Russian unlisted firms. Journal of Comparative Economics, 2022(50), 71–100.

    Article  Google Scholar 

  • Sun, J., Wang, F., Yin, H., & Zhao, R. (2022). Death or rebirth? How small- and medium-sized enterprises respond to responsible investment. Business Strategy and the Environment, 31(4), 1–14. https://doi.org/10.1002/bse.2981

  • Ward J. (2002). The role of the board in family business strategy. Family Business Know-How, June 2002.

    Google Scholar 

  • Whiterell B. (2002). Corporate governance and responsibility. OECD Observer, no. 234, October 2022.

    Google Scholar 

  • Yoshikawa, T., Nippa, M., & Chua, G. (2021). Global shift towards stakeholder-oriented corporate governance? Evidence from the scholarly literature and future research opportunities. Multinational Business Review, 2021(29), 321–347.

    Article  Google Scholar 

  • Zhang, Y., & Wei, F. (2021). SMEs’ charismatic leadership, product life cycle, environmental performance, and financial performance: A mediated moderation model. Journal of Cleaner Production, 2021(306), 127147.

    Article  Google Scholar 

  • Zhang, L., Zhang, X., An, J., Zhang, W., & Yao, J. (2022a). Examining the role of stakeholder-oriented corporate governance in achieving sustainable development: Evidence from the SME CSR in the context of China. Sustainability, 2022(14), 8181.

    Article  Google Scholar 

  • Zhang, X., Wang, Z., Zhong, X., Yang, S., & Siddik, A. B. (2022b). Do green banking activities improve the banks’ environmental performance? The mediating effect of green financing. Sustainability, 2022(14), 989.

    Article  Google Scholar 

  • Zhong, N. (2015). Corporate governance of Chinese privatized firms: Evidence from a survey of non-listed enterprises. Journal of Comparative Economics, 2015(43), 1101–1121.

    Article  Google Scholar 

  • Zumente, I., & Bistrova, J. (2021). Do Baltic investors care about environmental, social and governance (ESG)? Entrepreneurship and Sustainability Issues, 2021(8), 349–362.

    Article  Google Scholar 

  • Zutshi, A., Mendy, J., Sharma, G. D., Thomas, A., & Sarker, T. (2021). From challenges to creativity: Enhancing SMEs’ resilience in the context of COVID-19. Sustainability, 13(12), 6542. https://doi.org/10.3390/su13126542

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

Copyright information

© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Cardoni, A., Kiseleva, E. (2023). Sustainable Governance in Specific Settings of Listed and Unlisted Companies, SMEs, and Family Businesses. In: Sustainable Governance. CSR, Sustainability, Ethics & Governance. Springer, Cham. https://doi.org/10.1007/978-3-031-37492-0_6

Download citation

Publish with us

Policies and ethics