Abstract:
This qualitative exploration aimed to identify the role of corporate governance in enabling
sustainability performance in South Africa's banks. Through semi-structured interviews with
banking professionals and sustainability experts, the study examined the intricate relationship
between corporate governance and corporate sustainability performance. The findings
revealed several key insights.
Firstly, the study highlighted the critical role that management practices play in shaping a
strong corporate governance culture within the banks. The ethical conduct and leadership of
senior management were shown to influence perceptions, responses, and adherence to
governance standards directly. Secondly, the concept of integrated thinking emerged as
significant, demonstrating the banks' recognition of the interdependence among various
organisational aspects and their ecosystem. Unexpectedly, the study identified diversity of
mindset as a crucial aspect of effective decision-making and strategy implementation in the
banks. This finding expands existing literature on diversity in corporate governance by
emphasizing the importance of cognitive diversity beyond just physical and demographic
traits. Furthermore, the research provided valuable insights into how external factors, such as
reputation, the risk of greenwashing, and the broader country context, —impact the banks'
sustainability practices and disclosures. The study also underscored the necessity of
appropriate resources and capabilities for integrating effective corporate sustainability
strategies. Lastly, the central role of corporate purpose in merging corporate governance and
corporate sustainability practices was emphasized. The study discovered that the banks'
commitment to creating mutually beneficial value for all stakeholders, as guided by their
corporate purpose, played a crucial role in shaping their decision-making and strategies.
These findings contribute to the literature on corporate governance and corporate
sustainability performance, particularly within the context of South Africa's banking sector. The
study offers a nuanced understanding of the complex interrelationships between various
internal and external governance mechanisms, as well as the roles of leadership, resources,
capabilities, and corporate purpose in driving sustainable practices within banks.
