Abstract:
This paper examined the stance of independent directors on corporate sustainable development
initiative in South Africa and Nigeria. This has become apposite considering the role of independent
directors in corporate strategic decisions and performance. It is believed that independent boards
strive to direct corporate decisions to protect the investors and thus improve financial performance.
Given that sustainability initiative is currently occupying a vital strategic position in protecting firms
against inherent and imminent climate change and financial risks, the paper undertakes a survey of
South African and Nigerian companies to ascertain the role of independent directors on corporate
sustainable development initiatives. Using a mix method of primary and secondary data analysis, the
paper finds that independent boards in both countries of study understand the importance of
sustainability; however a pragmatic stance on sustainability is more visible in South Africa where
independent boards are members of and/or participate in nominating corporate sustainability
committees. The paper suggests the need for improved detailed disclosure on sustainability in the
Nigerian corporate annual reports; the Nigerian Stock Exchange may boost this initiative by
establishing a social and environmental reporting index supported by an annual survey of company
sustainability disclosure. It also suggests the need to include sustainability awareness and interest in
the metrics that are used in the appointment of independent boards in Nigerian companies.
