Corporate Governance and Ethical Accountability in Sustainable Organizational Development

Mohamed Suhaimi Yusof and Noorraha Abdul Razak and Norashikin Misnan and Hidayatul Khusna Abdul Malik4 (2026) Corporate Governance and Ethical Accountability in Sustainable Organizational Development. Jurnal Evolusi, 7 (1). pp. 14-31. ISSN 2735-2234

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Abstract

Corporate governance has evolved into a critical mechanism for ensuring organizational accountability, ethical responsibility, and sustainable value creation in increasingly complex business environments. This study examines the effectiveness of corporate governance by integrating key theoretical perspectives, including agency theory, stakeholder theory, stewardship theory, and ethical governance frameworks. The analysis highlights major governance challenges, particularly limitations in agency control, weak stakeholder accountability, inconsistencies in environmental, social, and governance disclosure, and deficiencies in ethical leadership and organizational culture. Drawing on recent regulatory developments and empirical literature, the study demonstrates that governance effectiveness depends on the alignment between governance structures, board capability, stakeholder engagement, and disclosure integrity. The findings further indicate that sustainability reporting and ESG integration have transformed governance from a compliance-based function into a strategic and accountability-driven system. In response to these challenges, the study proposes a set of integrated governance improvements, including strengthening board oversight, institutionalizing stakeholder participation, enhancing ESG reporting systems, and embedding ethical leadership within organizational culture. The study concludes that effective corporate governance requires a multidimensional and adaptive approach that combines structural mechanisms with ethical and behavioral alignment to support long-term sustainability, transparency, and stakeholder trust in modern organizations.

Item Type:	Article
Uncontrolled Keywords:	Governance; Accountability; Sustainability; Ethics; Transparency
Divisions:	Faculty of Business and Accountancy (FABA)
Depositing User:	LIBRARY1 UPTM
Date Deposited:	07 Sep 2026 06:56
Last Modified:	07 Sep 2026 06:56
URI:	http://eprints.uptm.edu.my/id/eprint/6121

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