Name: Chavi Marodia

JGU Id: 23014534

Section: D
Sub: Legal Research Methodology

Integrating Corporate Codes to Enhance ESG Standards in

Corporate Financial Decision Planning

Literature Review

 Ioannou and Serafeim (2015) - ESG & Financial Performance1

The authors make a strong argument for incorporating ESG considerations into business
plans. The basis for their rationale rests upon the notion that ESG (Environmental, Social, and
Governance) considerations are not merely a matter of compliance, but rather an imperative
of strategic importance. The knowledge of the strategic significance of ESG and its possible
influence on financial performance may be gained from this source.

 KPMG (2022) - ESG Reporting Guide2

The useful guide 'ESG Reporting: A Guide for Boards and Directors' by KPMG explores the
complexities of managing ESG reporting at the board level. This source is important because
it takes a hands-on approach to ESG reporting. Effective ESG reporting is now a must for
companies to be held accountable and be open. The guidance emphasizes that putting strong
ESG reporting frameworks in place is essential to risk management and sustainable business
practices, in addition to being morally required."

 Cieslak and Busch (2023) - Corporate Codes and ESG Performance3

The Palgrave Handbook of ESG and Corporate Governance's chapter by Cieslak and Busch
offers a thorough analysis of the connection between corporate codes and ESG performance.
According to this source, morals and corporate governance systems can help make big

1
Ioannou I and Serafeim G, ‘Corporate Sustainability: A Strategy?’ [2019] SSRN Electronic Journal <
http://dx.doi.org/10.2139/ssrn.3312191> accessed 22 October 2023
2
‘https://kpmg.Com/Xx/En/Home/Insights/2023/03/Esg-Reporting.Html’ KPMG (2022) - ESG Reporting
Guide , (Assessed on October 21, 2023).

3
Cieslak, A., & Busch, T, ‘Corporate Codes and ESG Performance’ [2023] Business & Society, 63(2), 523-562.
<https://www.sciencedirect.com/science/article/abs/pii/S001671852030083X> accessed on October 21, 2023.
changes for the better in ESG performance. It is essential reading for everybody interested in
learning how company codes affect and improve ESG results."

 Cui, Jo, and Kim (2021) - Corporate Codes and ESG Performance in the U.S.4
The aforementioned regionalized strategy duly acknowledges and takes into account the
inherent disparities in business policies and laws across diverse geographical regions. It
offers valuable elucidation on the customization of these codes to align with regional
disparities and regulatory structures.

 El Khoury and Picard (2022) - The Role of Corporate Codes in Enhancing ESG
Performance5
"A thorough and synthesising understanding of the function of corporate codes in improving
ESG performance is offered by El Khoury and Picard's systematic study. This source gives a
complete picture of the complicated effect that corporate codes have on ESG performance by
blending research findings from several studies that are not limited to a certain business or
location. The above sources give a full picture of the connection between corporate codes,
ESG success, and the current discussions in this area.

 Thinh Hoang (2018) - Integrated Reporting and ESG Performance Awareness6

The importance of corporate codes is indirectly clarified by Thinh Hoang's research on the
function of integrated reporting in increasing public awareness of ESG performance.
Corporate codes are in line with these goals. This study shows how significant it is for ESG
reports to be easy to understand. This is a big problem that corporate rules try to fix to
promote honesty and compliance with environmental standards.

4
Cui, Jo, and Kim, ‘Corporate Codes and ESG Performance in the U.S’[2021] SSRN Electronic Journal
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3866793 accessed 21 October 2023.
5
El Khoury and Picard ,’The Role of Corporate Codes in Enhancing ESG Performance’ [2022] SSRN
Electronic Journal < https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4053726> accessed 21 October 2023.

6
“Hoang, T., ‘The Role of the Integrated Reporting in Raising Awareness of Environmental, Social and
Corporate Governance (ESG) Performance, Stakeholders, Governance and Responsibility (Developments in
Corporate Governance and Responsibility, Vol. 14)’, [2018] Emerald Publishing Limited, Bingley, pp. 47-
69.< https://doi.org/10.1108/S2043-052320180000014003> . accessed 21 October 2023.
  Michele Siri and Shanshan Zhu (2021) - Sustainability in EU Corporate
Governance Codes7
Thinh Hoang's study on how integrated reporting raises public knowledge of ESG
performance serves to explain corporate norms in an indirect manner. The goals of integrated
reporting are in line with corporate rules. Integrated reporting uses both financial and non-
financial data to promote accountability and openness. This is one of the main problems that
corporate codes try to solve to encourage openness and compliance with sustainable
standards.

 Anna Young-Ferris and John Roberts - Early ESG Integration in Investment

Decision Making8
The investigation of early efforts at integrating ESG into speculation decision making by
Young-Ferris and Roberts brings to light the potential and challenges that firms face as they
start along the ESG path. This study shows how significant it is to align financial plans with
ESG goals.

 Peter Roselle (2016) - ESG Integration in Wealth Management9

The development of incorporating ESG research into wealth management choices is explored
in Peter Roselle's work. This addition is important for understanding how ESG factors are
becoming more important in the financial services business. The study stresses how
important environmental, social, and political issues are becoming when making financial
choices because investments and wealth management are closely linked. Chitra Sriyani De
Silva Lokuwaduge and Kumudini Heenetigala - ESG Disclosure for Sustainable
Development in Australia10

It emphasizes the value of industry- and region-specific strategies for ESG integration. This
study says that in order to support ESG performance, corporate rules often change to fit the
7
Ferrarini, Guido and Siri, Michele and Zhu, Shanshan, ‘The EU Sustainable Governance Consultation and the
Missing Link to Soft Law ‘( 2021). European Corporate Governance Institute - Law Working Paper No.
576/2021, SSRN Electronic Journal < https://ssrn.com/abstract=3823186,> (Assessed on October 21, 2023)”.
8
Young-Ferris, Anna and Roberts, John, ‘Looking for Something That Isn’t There’: A Case Study of an Early
Attempt at ESG Integration in Investment Decision Making (October 21, 2021). Forthcoming at European
Accounting Review, SSRN Electronic Journal <https://ssrn.com/abstract=3950851> , (Assessed on October 21,
2023)”.
9
“(The evolution of integrating ESG analysis into ... - Wiley Online Library)
https://onlinelibrary.wiley.com/doi/abs/10.1111/jacf.12178 accessed 21 October 2023”

10
“(Integrating Environmental, social and governance (ESG) disclosure for a ...)
https://onlinelibrary.wiley.com/doi/10.1002/bse.1927 accessed 21 October 2023”
specific needs and challenges of a given area or field. Their combined expertise adds to the
continuing conversations on how corporate entities might make their operations more
sustainable and socially responsible by integrating ESG principles.

 Aldowaish, Kokuryo, Almazyad, and Goi (2022) - ESG Integration into Business
Models11
The literature analysis and research agenda on ESG integration into business models by
Aldowaish and colleagues provide a perceptive picture of the state of ESG integration. Their
work is very important for setting the groundwork for more research in this area. This article
stresses how important it is for businesses to build ESG ideas into their core processes, as
required by company law, instead of just adding them to their strategy.

 Alkaraan, Albitar, Hussainey, and Venkatesh (2022) - Corporations and

Industry 4.0: Impact on Financial Performance12
Understanding how ESG factors interact with technical improvements in corporate decision
making is made possible by this study.

 Alsayegh, Rahman, and Homayoun (2020) - Corporate Sustainability

Performance Transformation through ESG Disclosure13

The study conducted by Alsayegh and colleagues on the transformation of corporate

sustainability performance via ESG disclosure explores the linking among ESG revelation
and the presentation of economic, environmental, and social sustainability. This study is very
important for understanding how ESG reporting works in the real world because it shows that
useful and clear ESG exposure can have a positive effect on many areas of sustainability
success.

 Contemporary Debates and Positions:

11
de Souza Barbosa, A., da Silva, M.C.B.C., da Silva, L.B. ‘ Integration of Environmental, Social, and
Governance (ESG) criteria: their impacts on corporate sustainability performance’. Humanit Soc Sci
Commun 10, 410 (2023)< https://doi.org/10.1057/s41599-023-01919-0>, accessed October 21, 2023.
12
Fadi Alkaraan; Khaldoon Albitar; Khaled Hussainey; VG Venkatesh, ‘Corporate Transformation toward
Industry 4.0 and Financial Performance: The Influence of Environmental, Social, and Governance (ESG):
Sciencegate’ (Technological Forecasting and Social Change)
[2022]https://www.sciencegate.app/document/10.1016/j.techfore.2021.121423 accessed 21 October 2023

13
(Corporate Economic, environmental, and social sustainability ...)
https://pdfs.semanticscholar.org/2421/213448e8d2095c175eab96954d2cce05b07c.pdf accessed 21 October
2023
The debates on the impression of board composition on ESG revelations in GCC nations, as
explored by Arayssi, Jizi, and Tabaja (2020)14, are noteworthy. The main subject of these
talks is how the make-up of boards affects the amount of ESG material that is shared in
various areas. It is important to understand this problem if you want to know how a
company's governance framework can affect its ESG practices and exposure, as well as how
corporate rules can direct these governance activities.

 Arif, Sajjad, Farooq, and Joyo (2020) - Impact of Audit Committee Attributes on
ESG Disclosures15
The study by Arif and colleagues on the influence of audit committee characteristics on the
volume and quality of ESG disclosures emphasizes how important audit committees are to
the ESG reporting process. The study stresses how important it is for companies to have good
governance so that they can promote useful environmental, social, and governance practices
and make sure that ESG reports are honest and accurate.

One important factor that shapes this interaction is the use of corporate codes, which make it
easier for companies to match their plans with environmental goals and best practices.

 F.Al-Shammari & W.Al-Fadli, (2022)-The impact of corporate codes on ESG

performance: Evidence from GCC countries16

Al-Shammari and Al-Fadli’s research findings show that ESG performance is positively
impacted in GCC countries by corporate codes. Interestingly, the study also indicates that
companies listed in stock exchanges and with larger sizes are more influenced by these codes
when it comes to improving their ESG scores.

 N.Chhabra & S.K.Mishra (2022)-The role of corporate codes in promoting

environmental sustainability: A theoretical perspective17

14
Arayssi, M., Jizi, M., & Tabaja, H.’ The Impact of Board Composition on the Level of ESG Disclosures in
GCC Countries’.[2020] Sustainability Accounting, Management and Policy Journal, 11, 137-161.
https://doi.org/10.1108/SAMPJ-05-2018-013 accessed 21 October 2023.
15
Arif, M., Sajjad, A., Farooq, S., Abrar, M. and Joyo, A.S. "The impact of audit committee attributes on the
quality and quantity of environmental, social and governance (ESG) disclosures,"[2020] Corporate
Governance, 21(3), 497-514 <https://doi.org/10.1108/CG-06-2020-0243.> , accessed 21
October 2023.
16
F. Al-Shammari and W. Al-Fadli, "The impact of corporate codes on ESG performance: Evidence from GCC
countries,"[2022] Business Strategy and the Environment, vol. 31, no. 8, pp. 3414-
3430,< https://onlinelibrary.wiley.com/doi/abs/10.1002/bse.2387> accessed 21 October 2023.
The study by Chhabra and Mishra (2022) examines corporate codes' potential to advance
environmental sustainability from a theoretical standpoint. The authors contend that corporate
codes in itself has the guts to improve corporate financial decision planning's integration of
ESG aspects in several ways: offering a platform for businesses to recognize and take
advantage of ESG opportunities and hazards, fostering accountability and transparency in
ESG performance, pressuring businesses to implement ESG best practices.

 M. García-Sánchez and J. Martínez-Ferrero, "The impact of corporate codes on

ESG performance: A moderated mediation analysis18

Long-term financial performance can be bolstered by corporate codes, as stated by the above
research. The report claims that implementing best practices in ESG management through
corporate codes leads to improvements in ESG performance, resulting in better financial
success for companies. This shows that corporate codes can assist businesses in more
effectively recognizing and managing ESG opportunities and risks as well as in making more
informed financial decisions that take these issues into consideration.

 World Economic Forum. (2020). Integrating ESG into corporate strategy19

Incorporating ESG practices into a company’s plan can bring about a lot of good. It amplifies
resilience to risk, enhances financial performance and improves reputation. But companies
face challenges when it comes to implementing them. They are the lack of awareness and
understanding around ESG, insufficient data and metrics, and brief market outlooks.

 KPMG. (2021). The future of corporate reporting: Integrating ESG factors into
financial decision-making20

17
N. Chhabra and S. K. Mishra, "The role of corporate codes in promoting environmental sustainability: A
theoretical perspective," [2022] Journal of Business Ethics, vol. 181, no. 1, pp. 229-248,
< https://pubmed.ncbi.nlm.nih.gov/37010709/> accessed 22 October 2023
18
García-Sánchez, I. M., & Martínez-Ferrero, J.,’The impact of corporate codes on ESG performance: A
moderated mediation analysis’. Journal of Business Ethics, 1-21. <https://research.rug.nl/en/publications/worth-
the-risk-greater-acceptance-of-instrumental-harm-befalling > accessed 22 October 2023.
19
World Economic Forum. (2020). Integrating ESG into corporate
strategy.<https://www.scottmadden.com/insight/integrating-esg-issues-into-corporate-strategy/ > acceseed 22
October 2023
20
KPMG. (2021). The future of corporate reporting: Integrating ESG factors into financial decision-
making.< https://kpmg.com/us/en/articles/2022/from-compliance-to-strategy-how-finance-can-lead-the-way-
in-esg.html> accessed 22 October 2023
Advantages of using ESG variables in corporate financial decision making are highlighted in
the KPMG Report (2021). This report talks about the future of making corporate reports such
as better risk management, improved strategic planning, increased investment opportunities
etc. business can also take advantage of new investments by integrating ESG.

 Buchetti, Bruno/Arduino, Francesca Romana (2022). A Systematic Literature

Review on Corporate Governance and ESG research: Trends and Future
directions.21

The achievement of ESG is significantly facilitated by corporate governance. Better company

financial performance can result from ESG integration. Improved stakeholder engagement
can result from ESG integration. Businesses may strengthen their ties with the stakeholders
including consumers, workers, and investors by implementing ESG integration.

 Brooks, Leonard J.- Corporate Codes of Ethics 22

Brooks argues that corporate codes of ethics can enhance performance by promoting ethical
behaviour ethics can lead to a number of benefits, including: increased employee productivity
and engagement, reduced turnover, improved customer loyalty, reduced legal and financial
risk.

 Jan Fichtner -“GOVERNANCE AND ESG.” MIND THE ESG GAPS:

TRANSMISSION MECHANISMS AND THE GOVERNANCE OF AND BY
SUSTAINABLE FINANCE23

This paper delves into the role of governance in order to examine ESG risk implementation
and the challenges it faces in the financial decisions of the company and also leads to the
foundation of sustainable finance.

21
“Buchetti, Bruno/Arduino, Francesca Romana , ‘A Systematic Literature Review on Corporate Governance
and ESG research : Trends and Future directions’ [2022] accessed 22 October 2023.

22
Leonard J. Brooks, "Corporate Codes of Ethics." 1989, vol. 8, no. 2/3, Journal of Business Ethics, pp. 117–29.
<http://www.jstor.org/stable/25071879.> accessed 22 October, 2023.

23
Fichtner, Jan, et al. “GOVERNANCE AND ESG. MIND THE ESG GAPS: TRANSMISSION
MECHANISMS AND THE GOVERNANCE OF AND BY SUSTAINABLE FINANCE, Danish Institute for
International Studies, [2023], pp. 7–14. JSTOR, < http://www.jstor.org/stable/resrep48454.5”>. Accessed 22
Oct. 2023.
  Cherkasova, Victoria, and Irina Nenuzhenko. “Investment in ESG Projects and
Corporate Performance of Multinational Companies.” 24
It provides that the investment in ESG projects had a positive impact on company’s financial
decisions especially in MNCs.
 Lund, Dorothy S. “CORPORATE FINANCE FOR SOCIAL GOOD.”25
Corporations should use their financial resources to achieve social goals, in addition to
maximizing shareholder value.

24
Cherkasova, Victoria, and Irina Nenuzhenko. “Investment in ESG Projects and Corporate Performance of
Multinational Companies.” Journal of Economic Integration, vol. 37, no. 1, 2022, pp. 54–92. JSTOR,
<https://www.jstor.org/stable/27107054.> accessed 22 Oct. 2023.
25
Lund, Dorothy S. “CORPORATE FINANCE FOR SOCIAL GOOD.” Columbia Law Review, vol. 121, no. 5,
2021, pp. 1617–58. JSTOR, <https://www.jstor.org/stable/27033037> . Accessed 22 Oct. 2023.
Bibliography

 Ioannou I and Serafeim G, ‘Corporate Sustainability: A Strategy?’ [2019] SSRN

Electronic Journal < http://dx.doi.org/10.2139/ssrn.3312191> accessed 22 October
2023
 ‘https://kpmg.Com/Xx/En/Home/Insights/2023/03/Esg-Reporting.Html’ KPMG
(2022) - ESG Reporting Guide , (Assessed on October 21, 2023).

 Cieslak, A., & Busch, T, ‘Corporate Codes and ESG Performance’ [2023] Business &
Society, 63(2), 523-562.
<https://www.sciencedirect.com/science/article/abs/pii/S001671852030083X>
accessed on October 21, 2023.
 Cui, Jo, and Kim, ‘Corporate Codes and ESG Performance in the U.S’[2021] SSRN
Electronic Journal https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3866793
accessed 21 October 2023.
 El Khoury and Picard ,’The Role of Corporate Codes in Enhancing ESG
Performance’ [2022] SSRN Electronic Journal <
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4053726> accessed 21 October
2023.

 “Hoang, T., ‘The Role of the Integrated Reporting in Raising Awareness of

Environmental, Social and Corporate Governance (ESG) Performance, Stakeholders,
Governance and Responsibility (Developments in Corporate Governance and
Responsibility, Vol. 14)’, [2018] Emerald Publishing Limited, Bingley, pp. 47-
69.< https://doi.org/10.1108/S2043-052320180000014003> . accessed 21 October
2023.

 Ferrarini, Guido and Siri, Michele and Zhu, Shanshan, ‘The EU Sustainable
Governance Consultation and the Missing Link to Soft Law ‘( 2021). European
Corporate Governance Institute - Law Working Paper No. 576/2021, SSRN
Electronic Journal < https://ssrn.com/abstract=3823186,> (Assessed on October 21,
2023)”.
 Young-Ferris, Anna and Roberts, John, ‘Looking for Something That Isn’t There’: A
Case Study of an Early Attempt at ESG Integration in Investment Decision Making
(October 21, 2021). Forthcoming at European Accounting Review, SSRN Electronic
Journal <https://ssrn.com/abstract=3950851> , (Assessed on October 21, 2023)”.
 “(The evolution of integrating ESG analysis into ... - Wiley Online Library)
https://onlinelibrary.wiley.com/doi/abs/10.1111/jacf.12178 accessed 21 October
2023”

 “(Integrating Environmental, social and governance (ESG) disclosure for a ...)

https://onlinelibrary.wiley.com/doi/10.1002/bse.1927 accessed 21 October 2023”

 de Souza Barbosa, A., da Silva, M.C.B.C., da Silva, L.B. ‘ Integration of

Environmental, Social, and Governance (ESG) criteria: their impacts on corporate
sustainability performance’. Humanit Soc Sci Commun 10, 410 (2023)<
https://doi.org/10.1057/s41599-023-01919-0>, accessed October 21, 2023.
 Fadi Alkaraan; Khaldoon Albitar; Khaled Hussainey; VG Venkatesh, ‘Corporate
Transformation toward Industry 4.0 and Financial Performance: The Influence of
Environmental, Social, and Governance (ESG): Sciencegate’ (Technological
Forecasting and Social Change)
[2022]https://www.sciencegate.app/document/10.1016/j.techfore.2021.121423
accessed 21 October 2023

 (Corporate Economic, environmental, and social sustainability ...)

https://pdfs.semanticscholar.org/2421/213448e8d2095c175eab96954d2cce05b07c.pdf
accessed 21 October 2023

 Arayssi, M., Jizi, M., & Tabaja, H.’ The Impact of Board Composition on the Level
of ESG Disclosures in GCC Countries’.[2020] Sustainability Accounting,
Management and Policy Journal, 11, 137-161.
https://doi.org/10.1108/SAMPJ-05-2018-013 accessed 21 October 2023.
 Arif, M., Sajjad, A., Farooq, S., Abrar, M. and Joyo, A.S. "The impact of audit
committee attributes on the quality and quantity of environmental, social and
governance (ESG) disclosures,"[2020] Corporate Governance, 21(3), 497-514
<https://doi.org/10.1108/CG-06-2020-0243.> , accessed 21 October 2023.
 F. Al-Shammari and W. Al-Fadli, "The impact of corporate codes on ESG
performance: Evidence from GCC countries,"[2022] Business Strategy and the
Environment, vol. 31, no. 8, pp. 3414-
3430,< https://onlinelibrary.wiley.com/doi/abs/10.1002/bse.2387> accessed 21
October 2023.
 N. Chhabra and S. K. Mishra, "The role of corporate codes in promoting
environmental sustainability: A theoretical perspective," [2022] Journal of Business
Ethics, vol. 181, no. 1, pp. 229-248, < https://pubmed.ncbi.nlm.nih.gov/37010709/>
accessed 22 October 2023
 García-Sánchez, I. M., & Martínez-Ferrero, J.,’The impact of corporate codes on ESG
performance: A moderated mediation analysis’. Journal of Business Ethics, 1-21.
<https://research.rug.nl/en/publications/worth-the-risk-greater-acceptance-of-
instrumental-harm-befalling> accessed 22 October 2023.

 World Economic Forum. (2020). Integrating ESG into corporate

strategy.<https://www.scottmadden.com/insight/integrating-esg-issues-into-corporate-
strategy/> acceseed 22 October 2023
 KPMG. (2021). The future of corporate reporting: Integrating ESG factors into
financial decision-making.< https://kpmg.com/us/en/articles/2022/from-compliance-
to-strategy-how-finance-can-lead-the-way-in-esg.html> accessed 22 October 2023

 “Buchetti, Bruno/Arduino, Francesca Romana , ‘A Systematic Literature Review on

Corporate Governance and ESG research : Trends and Future directions’ [2022]
accessed 22 October 2023.

 Leonard J. Brooks, "Corporate Codes of Ethics." 1989, vol. 8, no. 2/3, Journal of
Business Ethics, pp. 117–29. <http://www.jstor.org/stable/25071879.> accessed 22
October, 2023.
 Fichtner, Jan, et al. “GOVERNANCE AND ESG. MIND THE ESG GAPS:
TRANSMISSION MECHANISMS AND THE GOVERNANCE OF AND BY
SUSTAINABLE FINANCE, Danish Institute for International Studies, [2023], pp. 7–
14. JSTOR, < http://www.jstor.org/stable/resrep48454.5”>. Accessed 22 Oct. 2023.

 Cherkasova, Victoria, and Irina Nenuzhenko. “Investment in ESG Projects and Corporate
Performance of Multinational Companies.” Journal of Economic Integration, vol. 37, no.
1, 2022, pp. 54–92. JSTOR, <https://www.jstor.org/stable/27107054.> accessed 22 Oct.
2023.
 Lund, Dorothy S. “CORPORATE FINANCE FOR SOCIAL GOOD.” Columbia Law
Review, vol. 121, no. 5, 2021, pp. 1617–58. JSTOR,
<https://www.jstor.org/stable/27033037> . Accessed 22 Oct. 2023.