10. Sustainable Governance and Crises

The chapter 'Sustainable Governance and Crises' delves into the historical evolution of corporate governance, tracing its development in response to major crises such as the Great Depression, the Asian Financial Crisis, and the 2008 Global Financial Crisis. It emphasizes the shift from traditional corporate governance to sustainable governance, which integrates stakeholder interests and addresses non-financial risks. The chapter highlights the unique challenges posed by recent exogenous crises like the COVID-19 pandemic and geopolitical conflicts, underscoring the need for corporate governance to be dynamic, flexible, and open to stakeholder engagement. It also provides practical examples of how companies like ASML Holding N.V. and Airbnb, Inc. have successfully managed recent crises through strategic risk management and stakeholder support. The chapter concludes by emphasizing the importance of transparency, ethical leadership, and a strong corporate culture in navigating crises, making it a must-read for professionals seeking to understand the future of corporate governance in a complex and interconnected world.