CORPORATE GOVERNANCE MECHANISMS AND THE SUSTAINABLE DEVELOPMENT GOALS ADOPTION (SDGs) IN MENA

The growing importance of Sustainable Development Goals (SDGs) has generated increasing interest in internal governance mechanisms that facilitate SDG adoption, especially within the less-explored Middle East and North Africa (MENA) region. This research investigates the impact of board quality, sustainability committees, and the presence of an environmental management team (EMT) on the adoption of SDGs by publicly listed companies in ten MENA countries from 2014 to 2023. Grounded in agency and stakeholder theories, this study utilizes an integrated theoretical framework to analyze panel data, employing fixed-effects regression models to examine both the direct and moderating effects of governance structures on SDG adoption. The empirical results reveal that enhanced board quality, the existence of a sustainability committee, and an EMT have a significant effect on organizational progress toward SDG integration. Furthermore, sustainability committees and EMTs strengthen the influence of board quality on SDG adoption by translating board-level commitments into operational environmental actions. By combining these three governance elements into a cohesive model and offering empirical evidence from an emerging market region, this study advances the literature on sustainability governance and addresses a crucial gap. The findings provide practical insights for corporate leaders and policymakers in the MENA region, guiding efforts to reinforce governance frameworks and promote better organizational alignment with the 2030 Agenda.