How can sustainability committees foster sustainable business?

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School of Business | Bachelor's thesis
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Date

2023

Department

Laskentatoimen laitos

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Mcode

Degree programme

Laskentatoimi

Language

en

Pages

34

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Abstract

This thesis examines the role of sustainability committees in fostering sustainable business. The concern of sustainability and adequate actions toward it has arisen enormously among companies. This thesis aims to explore how sustainability committees can foster sustainable business. To find the answer, literature-based research is conducted. This paper has four parts. First, an introduction to board work, committee work, and sustainability committee is given. Secondly, the research method is disclosed. Thirdly, an analysis of the current literature is reviewed. Then, discussion and recommendations from the literature is conducted and relevant corporate governance theories around the work of sustainability committees is discussed. Lastly, the recommendations and findings of the thesis are summarized in the conclusion. Findings highlight that sustainability committees positively impact companies’ environmental and social performance and that committee members should have the authority and resources to address sustainability matters. Based on the reviewed literature, sustainability committees should work with remuneration committees to plan sustainability-related compensation schemes for executives. Additionally, the research highlights the crucial role sustainability committees play in fostering sustainable business practices through their impact on corporate sustainability responsibility (CSR) and assurance. Companies should establish sustainability committees to increase their sustainability reporting quality and consider the composition, role, and implementation of these committees as sustainability and audit committees can potentially play a substitution role in CSR reporting. Finally, collaboration and a clear division of responsibilities are crucial due to the potential overlap in the chief sustainability officer's (CSO) and sustainability committees' work. Sustainability committees are less explored than remuneration and audit committees, and there is little research on how sustainability committees can foster sustainable business. Therefore, this thesis contributes to the availability of knowledge on this topic by examining how can sustainability committees foster sustainable business.

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Thesis advisor

Vikash, Sinha

Keywords

sustainability committee, corporate governance, board committee, chief sustainability officer

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https://urn.fi/URN:NBN:fi:aalto-202306254302

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[kand] Kauppakorkeakoulu / BIZ (Open Access)