Beyond Compliance

Abstract

A broader range of key stakeholder interests reduces the risk of excessive risk-taking due to profit maximization and leads to more comprehensive corporate governance, which foster CSR practice and considers the right of its key stakeholders (such as human rights) in their operations. To ensure that companies in their corporate governance take into account a broader range of rights and interests, including factors related to the environment, society, and governance, and to ensure socially responsible management, the EU has adopted legislations such as NFRD and CSRD. With such legislation, companies in their corporate governance are obligated to consider a wider circle of stakeholders (individuals or groups), their rights and their needs. In this chapter, the NFRD and CSRD legislation will be examined, and through practical examples using the content analysis method, it will be checked to what extent companies include the interests of key stakeholders in their non-financial information reporting and how they report on their risks and opportunities.