Sustainable Corporate Governance: A Way Forward

20 Pages Posted: 7 Jan 2021 Last revised: 29 Apr 2021

See all articles by Florian Möslein

Florian Möslein

Universität Marburg (Institut für Handels- und Wirtschaftsrecht); Munich Center on Governance (MCG); European Corporate Governance Institute (ECGI)

Karsten Engsig Sørensen

Aarhus University – Aarhus BSS, Department of Law

Date Written: January 4, 2021

Abstract

The recently published ‘Study on directors’ corporate governance duties and sustainable’ prepared by Ernst and Young for the European Commission (EY report) has attracted many comments, largely critical. Despite all the justified criticism of the EY report, the potential of company law to make companies more sustainable should not be overlooked. In this article, we advocate the use of procedural regulatory instruments, such as disclosure or consultation requirements. Since the impact of procedural rules on sustainable governance is hard to predict, we also advocate a regulatory mix that may have a combined positive impact. Different procedures may affect different areas of the business of a company. Even if it is challenging to calibrate the variety of potential regulatory instruments, such a mix seems to be the best way forward at this point in time.

Keywords: Corporate governance, regulatory instruments

JEL Classification: K22

Suggested Citation

Möslein, Florian and Sørensen, Karsten Engsig, Sustainable Corporate Governance: A Way Forward (January 4, 2021). Nordic & European Company Law Working Paper No. 21-03, Forthcoming in European Company Law, European Corporate Governance Institute - Law Working Paper No. 583/2021, Available at SSRN: https://ssrn.com/abstract=3761711 or http://dx.doi.org/10.2139/ssrn.3761711

Florian Möslein

Universität Marburg (Institut für Handels- und Wirtschaftsrecht) ( email )

Savignyhaus
Universitätsstraße 6
Marburg, 35032
Germany

HOME PAGE: http://www.uni-marburg.de/fb01/lehrstuehle/zivilrecht/moeslein

Munich Center on Governance (MCG) ( email )

Geschwister-Scholl-Platz 1
Munich, DE Bavaria 80539
Germany

HOME PAGE: http://www.mcg.uni-muenchen.de

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Karsten Engsig Sørensen (Contact Author)

Aarhus University – Aarhus BSS, Department of Law ( email )

Bartholins Allé 16, Building 1410, Room 246
DK-8000 Aarhus C
Denmark

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