Stakeholder engagement in sustainability reporting by Fortune Global 500 companies: a call for embeddedness

Abstract

Purpose

The purpose of this paper is to ascertain whether Fortune Global 500 companies embed stakeholder engagement in their sustainability reporting.

Design/methodology/approach

Quantitative and qualitative content analyses were undertaken on 646 sustainability reports written in English over the period from 2015 to 2017.

Findings

This research found a low level of stakeholder engagement disclosures and scant evidence that sustainability disclosures were drawn upon stakeholder engagement practices. The findings indicate that stakeholder engagement was loosely embedded in sustainability reporting.

Research limitations/implications

Sustainability reports are the sole unit of analysis. Besides, this research is limited to a sample of companies and to a specific period, which limits the generalisation of the research findings.

Practical implications

Embedding stakeholder engagement in sustainability reporting holds companies accountable to their stakeholders. This is because the companies’ sustainability disclosures acknowledge the stakeholders’ concerns and information about the stakeholder engagement methods deployed to address those concerns.

Social implications

Stakeholder engagement promotes accountability by encouraging stakeholders to convey their opinions about corporate sustainability, participate in decision-making processes that impact them, and partake in defining the contents of sustainability reports.

Originality/value

This paper provides insights into the need to link sustainability disclosures with stakeholder engagement disclosures, by articulating who the relevant stakeholders are and how they are engaged on the various sustainability topics – rather than conceiving them to be separate and independent disclosures in a sustainability report.

Citation

Ardiana, P.A. (2023), "Stakeholder engagement in sustainability reporting by Fortune Global 500 companies: a call for embeddedness", Meditari Accountancy Research, Vol. 31 No. 2, pp. 344-365. https://doi.org/10.1108/MEDAR-12-2019-0666