ENVIRONMENTALLY FRIENDLY CORPORATE GOVERNANCE DESIGN IN MSMEs: A SYSTEMATIC LITERATURE REVIEW

Abstract

Companies are seen as a critical factor in overcoming the challenge of global warming. A balance between economic growth and the environment is guarded in Green governance. The context of green corporate governance is complex and generally linked to the country. Corporate governance shapes and determines the established order in which a business operates. This systematic literature review aims to analyze how implementing environmentally friendly corporate governance can affects the sustainable performance, obstacles, and practices of MSMEs. Systematic literature review using data obtained from online data. The articles obtained from EMERALD, MPDI, Taylor and Francis, SPRINGER, JIE, AMBR, SSRN, JDA, ETHICONOMI, ACCRUAL, Journal of Proceedings, JAM, and there are 41 selected articles by using the keyword search "environmentally friendly corporate governance/green corporate governance." The results of the analysis show that (1) environmentally friendly corporate governance from articles have a positive effect on the sustainable performance of MSMEs, (2)The lack of attention regarding the implementation of environmentally friendly corporate governance in MSMEs. They are seen as still having limitations in terms of internal resources and recommend that limited research related to environmentally friendly corporate governance on the sustainability performance of MSMEs be an agenda for future research.