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Microfinance institutions (MFIs) contribute greatly to sustainable development through microlending. This paper establishes a bridge between political stakeholder theory, social responsive theory, and institutional theory as applied to the functioning of MFIs. By establishing a nexus between these theoretical concepts, we investigate whether country-level socio-economic freedom, human development, and environmental issues affect the engagement and integration of environmental, social, and governance (ESG) activities by MFIs. Using a sample of 2,064 MFIs from 94 countries for the period 2007 to 2018, we find that MFIs from countries with higher socio-economic freedom, coupled with higher human development, may adhere to superior ESG policies. We posit that this is due to pressure from stakeholders to incorporate the triple bottom line objectives of 'profit, people, and the planet'. ESG integration is in line with institutional theory and enriched by political stakeholder theory.

Purpose – This paper aims to develop a framework of connotative meanings afforded to the term “corporate governance”. Design/methodology/approach – An examination of academic publications from 1985-2012 containing the term “corporate governance” was conducted. The articles are sorted into the theoretical constructs that influence the contemporary connotative meaning of corporate governance. Findings – That a combination of a weak definitional base coupled with strong motivational forces have aided the development of competing theoretical perspectives of the meaning of corporate governance. The dominant meaning is written from an agency theory perspective. Research limitations/implications – Theoretical analysis was restricted to articles found in academic journals published since 1985. Practical implications – This study provides a very useful analysis into the connotative meanings and theoretical bases used by academic writers in the study of corporate governance. Originality/value – This paper provides an updated and developed analysis to the theoretical dimensions that underpin the contemporary use of the term “corporate governance”.