Arseam

International Journal of E Government & E Business Research

CORPORATE GOVERNANCE FOR SUSTAINABLE ORGANIZATION: EXAMINING THE ROLE OF EMPLOYEES IN VALUE CREATION

Dr. Dinesh Doke

Dr. Dinesh Doke, Additional Commissioner, Social Welfare, Govt. of Maharashtra, Pune, India

DOI : https://doi.org/10.5281/zenodo.22804312 Page No : 83-92

Published Online : 2024-06-30

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ABSTRACT

Corporate governance has evolved beyond regulatory compliance and shareholder protection to become a strategic mechanism for achieving organizational sustainability and long-term value creation. This study examines the role of employees within corporate governance systems and explores how their participation, engagement, ethical behaviour, and organizational commitment contribute to sustainable value creation. Employees act as critical internal stakeholders who translate governance principles into responsible practices, operational efficiency, innovation, and stakeholder-oriented outcomes. Effective governance mechanisms that promote employee voice, transparency, fairness, empowerment, and accountability can strengthen trust and encourage responsible decision-making across organizational levels. The study further highlights the relationship between employee involvement and environmental, social, and governance (ESG) objectives, emphasizing human capital as an important driver of sustainable organizational performance. It concludes that integrating employee perspectives into governance processes can enhance organizational resilience, ethical culture, stakeholder confidence, and competitive advantage, thereby facilitating sustainable and inclusive value creation in contemporary organizations.

Keywords: Corporate Governance, Organizational Sustainability, Employee Engagement, Value Creation, Employee Participation, ESG, Stakeholder Governance

References:

Aguinis, H., &Glavas, A. (2012). What we know and don't know about corporate social responsibility: A review and research agenda. Journal of Management, 38(4), 932–968. https://doi.org/10.1177/0149206311436079
Amrutha, V. N., &Geetha, S. N. (2020). A systematic review on green human resource management: Implications for social sustainability. Journal of Cleaner Production, 247, 119131. https://doi.org/10.1016/j.jclepro.2019.119131
Aust, I., Matthews, B., & Muller-Camen, M. (2020). Common good HRM: A paradigm shift in sustainable HRM? Human Resource Management Review, 30(3), 100705. https://doi.org/10.1016/j.hrmr.2019.100705
Bae, K.-H., Kang, J.-K., & Wang, J. (2011). Employee treatment and firm leverage: A test of the stakeholder theory of capital structure. Journal of Financial Economics, 100(1), 130–153. https://doi.org/10.1016/j.jfineco.2010.10.019
Bailey, C., Madden, A., Alfes, K., & Fletcher, L. (2017). The meaning, antecedents and outcomes of employee engagement: A narrative synthesis. International Journal of Management Reviews, 19(1), 31–53. https://doi.org/10.1111/ijmr.12077
Eccles, R. G., Ioannou, I., &Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), 2835–2857. https://doi.org/10.1287/mnsc.2014.1984
Ehnert, I., Parsa, S., Roper, I., Wagner, M., & Muller-Camen, M. (2016). Reporting on sustainability and HRM: A comparative study of sustainability reporting practices by the world's largest companies. The International Journal of Human Resource Management, 27(1), 88–108. https://doi.org/10.1080/09585192.2015.1024157
Freeman, R. E., Phillips, R., &Sisodia, R. (2020). Tensions in stakeholder theory. Business & Society, 59(2), 213–231. https://doi.org/10.1177/0007650318773750
Gillan, S. L., Koch, A., & Starks, L. T. (2021). Firms and social responsibility: A review of ESG and CSR research in corporate finance. Journal of Corporate Finance, 66, 101889. https://doi.org/10.1016/j.jcorpfin.2021.101889
Harrison, J. S., Bosse, D. A., & Phillips, R. A. (2010). Managing for stakeholders, stakeholder utility functions, and competitive advantage. Strategic Management Journal, 31(1), 58–74. https://doi.org/10.1002/smj.801
Järlström, M., Saru, E., &Vanhala, S. (2018). Sustainable human resource management with salience of stakeholders: A top management perspective. Journal of Business Ethics, 152(3), 703–724. https://doi.org/10.1007/s10551-016-3310-8
Jiang, H., & Men, R. L. (2017). Creating an engaged workforce: The impact of authentic leadership, transparent organizational communication, and work-life enrichment. Communication Research, 44(2), 225–243. https://doi.org/10.1177/0093650215613137
Mahoney, J. T., &Kor, Y. Y. (2015). Advancing the human capital perspective on value creation by joining capabilities and governance approaches. Academy of Management Perspectives, 29(3), 296–308. https://doi.org/10.5465/amp.2014.0151
Martin, G., &Gollan, P. J. (2016). Corporate governance and strategic human resource management: Four archetypes and proposals for a new approach to corporate sustainability. European Management Journal, 34(1), 22–35. https://doi.org/10.1016/j.emj.2016.01.002
Morrison, E. W. (2014). Employee voice and silence. Annual Review of Organizational Psychology and Organizational Behavior, 1, 173–197. https://doi.org/10.1146/annurev-orgpsych-031413-091328
Renwick, D. W. S., Redman, T., & Maguire, S. (2013). Green human resource management: A review and research agenda. International Journal of Management Reviews, 15(1), 1–14. https://doi.org/10.1111/j.1468-2370.2011.00328.x
Saks, A. M. (2022). Caring human resources management and employee engagement. Human Resource Management Review, 32(3), 100835. https://doi.org/10.1016/j.hrmr.2021.100835
Stoelhorst, J. W., &Vishwanathan, P. (2024). Beyond primacy: A stakeholder theory of corporate governance. Academy of Management Review, 49(1), 107–134. https://doi.org/10.5465/amr.2020.0268
Wilkinson, A., Barry, M., & Morrison, E. (2020). Toward an integration of research on employee voice. Human Resource Management Review, 30(1), 100677. https://doi.org/10.1016/j.hrmr.2018.12.001

Cite this Article as : Dinesh D (2024), “Corporate Governance for Sustainable Organization: Examining the Role of Employees in Value Creation”, International Journal of E-Government & E-Business Research, Vol. 9, Issue 1, 2024, pp 83-92, DOI: https://doi.org/10.5281/zenodo.22804312

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References:

Aguinis, H., &Glavas, A. (2012). What we know and don't know about corporate social responsibility: A review and research agenda. Journal of Management, 38(4), 932–968. https://doi.org/10.1177/0149206311436079
Amrutha, V. N., &Geetha, S. N. (2020). A systematic review on green human resource management: Implications for social sustainability. Journal of Cleaner Production, 247, 119131. https://doi.org/10.1016/j.jclepro.2019.119131
Aust, I., Matthews, B., & Muller-Camen, M. (2020). Common good HRM: A paradigm shift in sustainable HRM? Human Resource Management Review, 30(3), 100705. https://doi.org/10.1016/j.hrmr.2019.100705
Bae, K.-H., Kang, J.-K., & Wang, J. (2011). Employee treatment and firm leverage: A test of the stakeholder theory of capital structure. Journal of Financial Economics, 100(1), 130–153. https://doi.org/10.1016/j.jfineco.2010.10.019
Bailey, C., Madden, A., Alfes, K., & Fletcher, L. (2017). The meaning, antecedents and outcomes of employee engagement: A narrative synthesis. International Journal of Management Reviews, 19(1), 31–53. https://doi.org/10.1111/ijmr.12077
Eccles, R. G., Ioannou, I., &Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), 2835–2857. https://doi.org/10.1287/mnsc.2014.1984
Ehnert, I., Parsa, S., Roper, I., Wagner, M., & Muller-Camen, M. (2016). Reporting on sustainability and HRM: A comparative study of sustainability reporting practices by the world's largest companies. The International Journal of Human Resource Management, 27(1), 88–108. https://doi.org/10.1080/09585192.2015.1024157
Freeman, R. E., Phillips, R., &Sisodia, R. (2020). Tensions in stakeholder theory. Business & Society, 59(2), 213–231. https://doi.org/10.1177/0007650318773750
Gillan, S. L., Koch, A., & Starks, L. T. (2021). Firms and social responsibility: A review of ESG and CSR research in corporate finance. Journal of Corporate Finance, 66, 101889. https://doi.org/10.1016/j.jcorpfin.2021.101889
Harrison, J. S., Bosse, D. A., & Phillips, R. A. (2010). Managing for stakeholders, stakeholder utility functions, and competitive advantage. Strategic Management Journal, 31(1), 58–74. https://doi.org/10.1002/smj.801
Järlström, M., Saru, E., &Vanhala, S. (2018). Sustainable human resource management with salience of stakeholders: A top management perspective. Journal of Business Ethics, 152(3), 703–724. https://doi.org/10.1007/s10551-016-3310-8
Jiang, H., & Men, R. L. (2017). Creating an engaged workforce: The impact of authentic leadership, transparent organizational communication, and work-life enrichment. Communication Research, 44(2), 225–243. https://doi.org/10.1177/0093650215613137
Mahoney, J. T., &Kor, Y. Y. (2015). Advancing the human capital perspective on value creation by joining capabilities and governance approaches. Academy of Management Perspectives, 29(3), 296–308. https://doi.org/10.5465/amp.2014.0151
Martin, G., &Gollan, P. J. (2016). Corporate governance and strategic human resource management: Four archetypes and proposals for a new approach to corporate sustainability. European Management Journal, 34(1), 22–35. https://doi.org/10.1016/j.emj.2016.01.002
Morrison, E. W. (2014). Employee voice and silence. Annual Review of Organizational Psychology and Organizational Behavior, 1, 173–197. https://doi.org/10.1146/annurev-orgpsych-031413-091328
Renwick, D. W. S., Redman, T., & Maguire, S. (2013). Green human resource management: A review and research agenda. International Journal of Management Reviews, 15(1), 1–14. https://doi.org/10.1111/j.1468-2370.2011.00328.x
Saks, A. M. (2022). Caring human resources management and employee engagement. Human Resource Management Review, 32(3), 100835. https://doi.org/10.1016/j.hrmr.2021.100835
Stoelhorst, J. W., &Vishwanathan, P. (2024). Beyond primacy: A stakeholder theory of corporate governance. Academy of Management Review, 49(1), 107–134. https://doi.org/10.5465/amr.2020.0268
Wilkinson, A., Barry, M., & Morrison, E. (2020). Toward an integration of research on employee voice. Human Resource Management Review, 30(1), 100677. https://doi.org/10.1016/j.hrmr.2018.12.001

Int. J. of E-Gov. & E-Busi Res

CORPORATE GOVERNANCE FOR SUSTAINABLE ORGANIZATION: EXAMINING THE ROLE OF EMPLOYEES IN VALUE CREATION

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