The Relationship between Corporate Governance and Social Disclosures | [Pakistan Journal of Life and Social Sciences • 2025]

Author(s):

1. Ahmed Oluwatobi Adekunle: Department of Accounting Science, Walter Sisulu University,,South Africa

Abstract:

There is an increasing need to incorporate sustainability considerations into corporate governance. The study intends to examine the relationship between corporate governance and social disclosures from financial companies in Nigeria. For the aim, we employ annual report of twenty-five (25) deposit money banks (DMBs) covering 2019 to 2023, to examine the relationship between corporate governance variables and sustainability disclosure. We considered two measures of corporate governance frameworks -audit committee composition and foreign board membership and use the global reporting initiative (GRI) to proxy social disclosure. We use simple correlation method to establish the link between audit committee composition and sustainability disclosure as well as between foreign board membership and sustainability disclosure. The finding shows evidence of positive and significant correlation between audit committee composition and GRI disclosure, whereas the evidence shows positive but insignificant correlation between foreign board membership and GRI disclosure measure. We suggest that the audit committee should involve members with diverse expertise. The company board should recruit foreign members with expertise in sustainability and environmental matters. Companies should prioritize transparency and disclosure in sustainability reporting, ensuring that stakeholders have access to accurate and reliable information on their social and environmental involvement.

Page(s): 478-485

DOI: 10.57239/PJLSS-2025-23.2.00184

Published: Journal: Pakistan Journal of Life and Social Sciences, Volume: 23, Issue: 2, Year: 2025

Keywords:

Social Disclosure Global Reporting Initiative Audit Committee Foreign Board Member , Corporate Governance Sustainability Reporting

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