The corporate governance reporting in the European Union

Abstract

The latest European Union's (EU) guiding policies are encouraging big businesses and state-owned organisations to disclose their environmental, social and governance (ESG) performance. Many European member states have transposed the EU's directive 2014/95/EU on non-financial reporting. This directive has presented a significant step forward toward the as its "comply or explain" approach has encouraged organisations to disclose a true and fair view on their organisations' financial and ESG capitals. Hence, this paper makes specific reference to some of the corporations' best practices as it identifies areas for improvement in corporate governance issues. It explains how three major European banks are following the recommendations of their national regulatory institution, as they have reviewed the roles and responsibilities of the corporate boards and management. In many cases, they have anticipated the regulatory, legal, contractual, social and market-driven obligations. This contribution contends that there are significant implications for financial services corporations who intend following the right path toward responsible corporate governance and ethical behaviours. ; peer-reviewed