Internal Audit from ESG Perspective. Pharmaceutical Industry Experience
Author:
Antonella Maria TIMIS
JEL:
M42, M48, M48, G38
DOI:
10.20869/AUDITF/2024/175/022
Keywords:
internal audit; ESG (Environmental, Social, Governance); corporate governance; pharmaceutical industry; Bucharest Stock Exchange; disclosure index;
Abstract:
In a continuously changing global context, adaptation and innovation are fundamental to the existence and sustainability of companies. The importance of climate change and the increased interest of investors and other stakeholders in environmental, social and governance (ESG) information require companies to adopt ESG-focused business strategies. Therefore, internal audit takes a dynamic role in promoting an organisational culture that values transparency, accountability and commitment to sustainability. The research approach is at two dimensions. The first dimension considers the literature review of specific conceptual approaches to internal audit from the perspective of environmental, social, governance factors. The second dimension is quantitative research and consists in identifying the degree of compliance of companies in the pharmaceutical industry listed on the Bucharest Stock Exchange with the social requirements of good corporate governance in the pandemic and post-pandemic periodic. This is complemented by the development of a framework for internal audit from a social perspective. The results of the research revealed the convergence towards more value generated by internal audit in the ESG context, but also the imperative need for companies to adopt and implement pro-active environmental, social and governance-oriented strategies. The results also revealed that both in the pandemic and post-pandemic period, the companies analysed in the pharmaceutical industry maintained and improved their social reporting.
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