Jul 2026· Corporate Social Responsibility and Environmental Management· 0 citations· 77 references
Abstract
Corporate corruption and fraud continue to pose a serious challenge to ESG performance and reporting. This literature review systematically examines and discusses what is known about the relationship between ESG and corruption risks. Following the PRISMA guidelines, we reviewed 87 articles published in the Scopus and Web of Science databases. Our analysis groups the findings into three themes: (1) corporate fraud risk management and ethics disclosure, (2) political connections and corporate performance, and (3) organizational culture, leadership, and corruption. Furthermore, to support organizations in mitigating ESG‐related corruption risks, we propose two frameworks drawing on the COSO ERM framework and aligned with international sustainability standards. In addition, an integrative framework highlights the pivotal role of internal auditing in strengthening ESG assurance and corruption prevention based on the Plan‐Do‐Check‐Act cycle. This study offers actionable insights for researchers and practitioners seeking to improve ESG practices and curb corruption.
Developments in sustainability issues are prompting companies to integrate Environmental, Social, and Governance (ESG) aspects into their accounting and reporting practices as a means of enhancing transparency, accountability, and responsibility towards stakeholders. This study aims to analyse developments in ESG disclosure within corporate accounting and reporting practices using a Systematic Literature Review (SLR) approach. The study employs a qualitative method, examining academic articles sourced from the Google Scholar database. Literature selection was conducted in accordance with the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines, followed by content analysis and validation through source triangulation. Research findings indicate that ESG disclosure has driven a shift in accounting practices from a shareholder-centric to a stakeholder-centric approach, improved the quality of reporting through transparency, credibility and the relevance of information, and strengthened the confidence of investors and stakeholders. On the other hand, the implementation of ESG still faces challenges in the form of regulatory fragmentation, differences in reporting standards, limitations in human resource capabilities, and technological readiness. Therefore, regulatory harmonisation, the strengthening of ESG reporting standards, and the enhancement of human resource capacity and the utilisation of digital technology are required to support a more effective and sustainable implementation of ESG.
Marisa Christy Neno, Maria Regina Sofie Daneswari· Ilmu Ekonomi Manajemen dan A...· 0 citations
Environmental, social, and governance (ESG) disclosure is attracting the attention of standard setters, regulatory bodies, academics, and practitioners. This interest stems from the evolution of ESG disclosure standards—notably, the new sustainability standards developed by the International Sustainability Standards Board. While considering the opportunities that these new standards offer for future research, this study sheds light on the roles of the key corporate governance pillars involved in the ESG disclosure process, as documented in previous research. A content analysis of 181 articles published between 2009 and 2024 focuses on the roles of three main pillars in ESG disclosure: management, audit committees, and external auditors. Our analysis shows that the role of management stands out most, whereas research remains limited on the roles of the audit committee and external auditors. Our results highlight the roles of these corporate governance pillars in the ESG disclosure process and point to future research opportunities. Our study also notes a growing interest in ESG disclosure research and calls on practitioners and policymakers to strengthen corporate governance mechanisms, while encouraging the adoption of the new ESG disclosure standards.
This study examines whether environmental, social, and governance (ESG) practices enhance corporate profitability and firm value by reviewing empirical evidence from previous studies. Using a systematic literature review guided by a PRISMA approach, peer-reviewed articles published between 2010 and 2025 and indexed in Scopus and Web of Science were analyzed. The findings indicate that firms adopting ESG practices generally achieve stronger financial performance and higher market valuation, although the strength and direction of the relationship vary across contexts. Five key factors influence these outcomes: the credibility of ESG disclosure, the financial materiality of ESG issues within the industry, governance quality, environmental exposure, and the institutional maturity of the market. The review also highlights that inconsistencies among ESG rating agencies contribute to measurement differences, leading to mixed empirical findings. Drawing on stakeholder and legitimacy theories, the study suggests that effective ESG implementation reduces information asymmetry, lowers financing costs, strengthens corporate reputation, and increases investor confidence. An integrative framework is proposed to explain the relationship between ESG implementation and firm value while identifying future research opportunities, particularly in emerging economies such as Indonesia, where sustainable finance regulations continue to develop.
Agung Nugroho, Andini Nurwulandari, E. Hasanudin· International Journal of Eco...· 0 citations
This structured literature review explores the role of corporate governance in enhancing the effectiveness of management control systems (MCS), with a particular focus on the emerging challenges and strategic directions in implementation. Drawing on peer-reviewed publications from 2020 to 2025, the study synthesizes four critical themes: (1) the functional role of governance in MCS design, (2) multidimensional indicators of control system effectiveness, (3) barriers to governance-aligned MCS implementation, and (4) strategic responses to contemporary governance demands. The review reveals that corporate governance improves MCS by reinforcing transparency, accountability, risk mitigation, and stakeholder engagement, particularly when supported by internal audit, board independence, and digital capabilities. It also highlights emerging concerns such as cybersecurity, remote work productivity, technological adaptation, and employee well-being. Theoretically, this study contributes by integrating control systems theory with digital governance and behavioral insights; practically, it offers guidance for designing responsive, ethical, and performance-driven control architectures. Limitations include the reliance on secondary sources and the lack of empirical generalization, prompting future research to investigate causal mechanisms through mixed-methods approaches
Amalia Sholehah· Jurnal Profesi Dan Manajemen...· 0 citations
Background: Digital transformation, sustainability demands, and evolving governance standards have challenged financial reporting integrity. However, existing studies have largely examined governance, ESG disclosure, and digital technologies separately, resulting in fragmented perspectives that limit a comprehensive understanding of their interrelationships.
Objective: This study systematically reviews and synthesizes research on financial reporting integrity by examining how sustainability pressures, digital transformation, and governance mechanisms converge to reshape transparency and accountability in corporate reporting.
Methods: A Systematic Literature Review (SLR) guided by the PRISMA 2020 guidelines was conducted. Data were sourced from the Scopus database and covered publications from 2021 to 2025. Following rigorous inclusion and exclusion screening procedures, 28 peer-reviewed articles were selected from an initial pool of 713 records. The TCCM Framework (Theory, Context, Characteristics, and Methodology) was applied to classify, evaluate, and synthesize the research findings.
Results: Agency Theory and quantitative research methods dominate the field. Recent studies increasingly emphasize ESG disclosure, blockchain technology, and artificial intelligence (AI) as key determinants of transparency. Significant research gaps remain regarding cross-disciplinary approaches, emerging market contexts, and ethical risk assessments in digital reporting practices. This review reconceptualizes financial reporting integrity as a multidimensional socio-technical governance phenomenon shaped by governance accountability, sustainability legitimacy, and technological transparency.
Conclusion: Future research should adopt interdisciplinary, mixed-method, and cross-country research frameworks to investigate greenwashing mechanisms, digital reporting ethics, and the interplay between emerging regulatory frameworks, including the International Sustainability Standards Board (ISSB) Standards and IFRS Sustainability Disclosure Standards, and technological transformation within sustainability-oriented reporting environments.
Winda Wulandari, Sri Widyastuti, Harnovinsah Harnovinsah et al.· Inkubis Jurnal Ekonomi dan B...· 0 citations
Purpose: This study aims to examine the impact of digital transformation and sustainability disclosure on audit quality, and whether corporate governance moderates these relationships within an emerging country context.
Methodology/approach: Utilizing panel logistic regression, this research analyzes listed companies. Digital transformation is measured via content analysis of specific keywords (e.g., AI, digital transformation), while sustainability disclosure and audit quality (big 4 vs non-big 4) use dummy variables. Corporate governance is proxied by audit committee size, independent commissioners, and the frequency of audit committee meetings.
Findings: The results of this study indicate that digital transformation and sustainability disclosure both positively and significantly affect audit quality among non-financial firms listed on the Indonesia Stock Exchange during the 2020-2024 period. However, corporate governance, proxied by audit committee size, the independent commissioner ratio, and audit committee meeting frequency, does not significantly strengthen either relationship.
Practical and Theoritical contribution/Originality: Theoretically, this study extends agency theory by simultaneously integrating corporate digitalization and environmental sustainability factors. Practically, it assists regulators in emerging markets in formulating better reporting standards to improve market transparency.
Research Limitation: The digital transformation measurement relies strictly on keyword frequency in annual reports, which may not fully capture the actual operational depth of a company’s technological implementation.
Akie Rusaktiva Rustam, R. Widiastutik, Dian Anugerah Pancasona· Jurnal Akademi Akuntansi· 0 citations