The effect of adding corporate environmental reports in the annual financial reports on corporate governance and sustainable development of companies in Jordan

Abstract

During the last two decades of the last century, the pressures demanding companies to take responsibility for all stakeholders increased, and they demanded to disclose the effects of operations they carry out on the environment, employees, and society, and these pressures were in two directions, first being internal to adopt technologies aimed at reducing waste costs which improving the image of the company locally and globally, that will classify it as a (green company), and on the other hand pressures it was external by increasing the environmental audit process, this led companies to think seriously about improving their environmental and economic performance to preserve the environment, and then support sustainable development. The definition of sustainability has become widespread and can be applied locally and globally level, and over different periods and this requires amassive team effort. Also, sustainable development takes multiple patterns, starting with reorganization of living conditions (such as environmental villages, environmental towns, and sustainable cities), reassessment of economic sectors (perennial agriculture, green buildings, and sustainable agriculture), or business practices (sustainable architecture), and that Using of science to develop new technology (environmental technology, renewable energy), with modifications to individual lifestyles that conservenatural resources. Achieving sustainable development requires reconciling social, environmental, and economic demands, which are the “three pillars” of sustainability (Social, environmental, and economic demands). This paper aims to review the impact of adding environmental Corporate Reports with the Annual Financial Reports on Corporate Governance and Sustainable Development in Jordanian companies and a reflection of this on the obligations of companies to achieve sustainable development and its corporate governance. We expected that we would find weak interest from various companies in environmental reports which effect on achieving sustainable development, with greater attention to the economic aspects because they are reflected in the financial capacity of companies, and increase their revenues and continuity, but the Jordanian government continues to pressure companies by adopting many laws to include environmental reports of companies as an appendix with annual financial reports of Jordanian companies.