oai:eurokd.com:article/419 2025-12-15

Board Governance and Sustainability Disclosure – A Romanian Insight <p style="text-align:justify;">This&nbsp;paper examines the corporate governance and sustainability disclosure and&nbsp;investigates the existing anchor between sustainability disclosure and&nbsp;corporate governance in Romanian companies. The topic provides a generous field&nbsp;of study because of the novelty of sustainable reporting for the Romanian&nbsp;companies and need for robust, consolidated corporate governance. The study’s&nbsp;sample includes listed and non-listed companies operating in the oil, transportation, chemistry and pharmaceutical industries. Annual reports,&nbsp;comply-or-explain declarations and stand-alone sustainability reports of the companies were analyzed on a time frame of three years aiming at measure the&nbsp;quality of sustainability disclosures and investigate the correlations between&nbsp;board governance and sustainability disclosure. The study emphasized that the&nbsp;companies opted mainly to integrate sustainable reporting in the annual&nbsp;management report. The independent reports on sustainability are more rigorous&nbsp;and better aligned to the Romanian framework, then the information integrated&nbsp;into the annual management reports. Improved disclosure is needed on the main&nbsp;risks with severe impacts, policies regarding specific aspects of&nbsp;sustainability, key performance indicators relevant to particular businesses.&nbsp;The sustainability reporting is more focus on soft disclosure items. Companies&nbsp;with larger board size and a higher number of board meetings registered higher&nbsp;disclosure in sustainability reporting. Robust corporate governance is&nbsp;imperative for Romanian companies because they are facing drastic changes in&nbsp;all aspects of their activity. A new rethink approach is needed from the sustainability&nbsp;perspective aiming at reshaping the entire processes starting with a long-term&nbsp;strategy, business models, risk and data management and processing.</p> EuroKD Publishing 2020-08-24 Text https://api.eurokd.com/Uploads/Article/419/mbrq.2020.14.04.pdf https://doi.org/10.32038/mbrq.2020.14.04 en Pages 47–60