A Review of Sustainability Reporting and Stakeholder Engagement: The Future Research Agenda
Abstract
Sustainability reporting has become a critical component for organizations aiming to demonstrate their commitment to environmental, social, and governance (ESG) practices. This systematic literature review explores the nexus between sustainability reporting and stakeholder engagement, offering a comprehensive analysis of current practices and outcomes. To achieve this, we conducted an extensive search of scholarly articles from reputable databases such as Scopus and EconBiz, focusing on studies published between 2020 and 2024. The flow of study was based on PRISMA framework. The database found (n=37) final primary data was analysed. The finding was divided into three themes which is (1) Stakeholder Engagement in Sustainability Reporting, (2) Materiality and Assurance in Sustainability Reporting and (3) Impact of Sustainability Reporting on Organizational Performance. The review concludes that while sustainability reporting is instrumental in enhancing transparency, its true effectiveness lies in genuine stakeholder engagement. Future research should focus on developing standardized metrics for assessing stakeholder engagement and exploring the causal relationship between engagement practices and sustainability outcomes. This study contributes to the existing body of knowledge by highlighting the critical role of stakeholder engagement in sustainability reporting and offering actionable insights for policymakers and corporate leaders to enhance ESG reporting frameworks.
References
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Ardiana, P. A. (2023). Stakeholder engagement in sustainability reporting by Fortune Global 500 companies: a call for embeddedness. Management Decision, 1-20. https://doi.org/10.1108/MEDAR-12-2019-0666
Bellucci M., Simoni L., Acuti D., & Manetti G. (2019). Stakeholder engagement and dialogic accounting: Empirical evidence in sustainability reporting. Accounting, Auditing and Accountability Journal, 32(5), 1467-1499. https://doi.org/10.1108/AAAJ-09-2017-3158
Boiral, O., & Heras-Saizarbitoria, I. (2020). Sustainability reporting assurance: Creating stakeholder accountability through hyperreality? Journal of Cleaner Production, 243. https://doi.org/10.1016/j.jclepro.2019.118596
Calderon, F., Manuela Jr, W. S., & Briones, D. T. (2023). The impact of sustainability reporting on organizational behaviour from Western and Asian perspectives: a systematic review of literature. Asian Journal of Business Ethics, 1(1), 1-20. https://doi.org/10.1080/20430795.2021.1879560
Dewi, A. A., Saraswati, E., Rahman, A. F., & Atmini, S. (2023). Materiality, stakeholder engagement disclosure, and corporate governance: Critical elements for the quality of sustainability reporting. Cogent Business & Management, 10(1), 1-20. https://doi.org/10.1080/23311975.2023.2175437
Elaigwu, M., Abdulmalik, S. O., & Talab, H. R. (2024). Corporate integrity, external assurance and sustainability reporting quality: evidence from the Malaysian public listed companies. Asia-Pacific Journal of Business Administration, 16(2), 410-440. https://doi.org/10.1108/APJBA-07-2021-0307
Erin, O. A., & Bamigboye, O. A. (2022). Evaluation and analysis of SDG reporting: evidence from Africa. Journal of Accounting & Organizational Change, 18(3), 369-396. https://doi.org/10.1108/JAOC-02-2020-0025
E-Vahdati, S., Wan-Hussin, W. N., & Ling, O. H. (2022). Sustaining the Yellow Heart: responsible business by reducing inequalities at Digi Malaysia. Emerald Emerging Markets Case Studies, 12(1), 1-20. https://doi.org/10.1108/EEMCS-10-2020-0362
Farooq, M.B., Zaman, R., & Nadeem, M. (2021a). AccountAbility’s AA1000AP standard: a framework for integrating sustainability into organisations. Sustainability Accounting, Management and Policy Journal. 12(5), 1108-1139. https://doi.org/10.1108/SAMPJ-05-2020-0166
Farooq, M. B., Zaman, R., Sarraj, D., & Khalid, F. (2021b). Examining the extent of and drivers for materiality assessment disclosures in sustainability reports. Sustainability Accounting, Management and Policy Journal, 12(5), 965-1002. https://doi.org/10.1108/SAMPJ-04-2020-0113
Fauzi, D. R. (2021). Disclosure of Sustainability Report on Financial Performance. Jurnal Akuntansi, Audit Dan Sistem Informasi Akuntansi, 5(1), 53-63. https://doi.org/10.36555/jasa.v5i1.1488
Fusco, F., Pavone, P., & Ricci, P. (2024). Strengthening accountability and sustainability reporting: does stakeholder engagement really work? Evidence from the judicial sector. Social Responsibility Journal, 20(5). https://doi.org/10.1108/SRJ-05-2023-0248
Guix, M., & Font, X. (2020). The Materiality Balanced Scorecard: A framework for stakeholder-led integration of sustainable hospitality management and reporting. International Journal of Hospitality Management, 91, 102634. https://doi.org/10.1016/j.ijhm.2020.102634
Henriques, R., Gaio, C., & Costa, M. (2022). Sustainability Reporting quality and stakeholder engagement assessment: The case of the paper sector at the Iberian level. Sustainability, 14, 14404. https://doi.org/10.3390/su142114404
Iazzi, A., Pizzi, S., Iaia, L., & Turco, M. (2020). Communicating the stakeholder engagement process: A cross‐country analysis in the tourism sector. Corporate Social Responsibility and Environmental Management, 27(4), 1642-1652. https://doi.org/10.1002/csr.1913
Kang, Y. C., Hsiao, H. S., & Ni, J. Y. (2022). The Role of Sustainable Training and Reward in Influencing Employee Accountability Perception and Behavior for Corporate Sustainability. Sustainability (Switzerland), 14(18). https://doi.org/10.3390/su141811589
Kang, E., & Lam, N. B. (2023). The impact of environmental disclosure on initial public offering underpricing: Sustainable development in Singapore. Corporate Social Responsibility and Environmental Management, 1-20. https://doi.org/10.1002/csr.2342
Kurznack, L., Schoenmaker, D., & Schramade, W. (2021). A model of long-term value creation. Journal of Sustainable Finance and Investment. https://doi.org/10.1080/20430795.2021.1920231
Leeson, R., & Kuszewski, J. (2023). GRI and stakeholder engagement: setting standards in the public interest. Sustainability Accounting, Management and Policy Journal, 14(4), 877-883. https://doi.org/10.1108/SAMPJ-06-2022-0329
Lemma, T. T., Negash, M., Lulseged, A., & Maroun, W. (2024). Sustainability assurance and corporate environmental accountability. Business Strategy and the Environment, 33(4). https://doi.org/10.1002/bse.3643
Mavroulidis, M., Vouros, P., Fotiadis, S., Konstantakopoulou, F., Fountoulakis, G., Nikolaou, I., & Evangelinos, K. (2022). Occupational health and safety of multinational construction companies through evaluation of corporate social responsibility reports. Journal of safety research, 81, 45-54. https://doi.org/10.1016/j.jsr.2022.01.005
Ngu, S. B., & Amran, A. (2018a). Materiality disclosure in sustainability reporting: fostering stakeholder engagement. Sustainability Accounting, Management and Policy Journal, 9(2), 175-197. https://doi.org/10.1108/SD-01-2018-0002
Ngu, S. B., & Amran, A. (2019b). The impact of sustainable board capital on sustainability reporting. Social Responsibility Journal, 15(1), 144-164. https://doi.org/10.1108/SD-05-2019-0098
Pasko, O., Marenych, T., Diachenko, O., Levytska, I., & Balla, I. (2021). Stakeholder engagement in sustainability reporting: the case study of Ukrainian public agricultural companies. Agricultural and Resource Economics: International Scientific E-Journal, 7(1), 58-80. http://dx.doi.org/10.22004/ag.econ.310949
Perkiss, S., Bayerlein, L., & Dean, B. A. (2021). Facilitating accountability in corporate sustainability reporting through Spotlight Accounting. Accounting, Auditing and Accountability Journal, 34(2). https://doi.org/10.1108/AAAJ-08-2019-4142
Reimsbach, D., & Braam, G. (2023). Creating social and environmental value through integrated thinking: International evidence. Business Strategy and the Environment, 32(1). https://doi.org/10.1002/bse.3131
Romero, S., Ruiz, S., & Fernandez‐Feijoo, B. (2019). Sustainability reporting and stakeholder engagement in Spain: Different instruments, different quality. Business Strategy and the Environment, 28(1), 221-232. https://doi.org/10.1002/bse.2251
Salvador, R., Barros, M. V., do Prado, G. F., Pagani, R. N., Piekarski, C. M., & de Francisco, A. C. (2021). Knowledge and technology transfer in sustainability reports: Fomenting stakeholder engagement for sustainable development. Corporate Social Responsibility and Environmental Management, 28(1), 251-264. https://doi.org/10.1002/csr.2046
Sarkis-Onofre, R., Catalá-López, F., Aromataris, E., & Lockwood, C. (2021). How to properly use the PRISMA Statement. Systematic Reviews, 10, 1-3. https://doi.org/10.1186/s13643-021-01671-z
Sebrina, N., Taqwa, S., Afriyenti, M., & Septiari, D. (2023). Analysis of sustainability reporting quality and corporate social responsibility on companies listed on the Indonesia stock exchange. Cogent Business & Management, 8(1), 1-20. https://doi.org/10.1080/23311975.2022.2157975
Sehgal, V., Garg, N., & Singh, J. (2023). Impact of sustainability performance & reporting on a firm’s reputation. International journal of system assurance engineering and management, 14(1), 228-240. https://doi.org/10.1007/s13198-022-01782-3
Shalhoob, H., & Hussainey, K. (2023). Environmental, Social and Governance (ESG) Disclosure and the Small and Medium Enterprises (SMEs) Sustainability Performance. Sustainability (Switzerland), 15(1). https://doi.org/10.3390/su15010200
Stocker, F., de Arruda, M. P., de Mascena, K. M., & Boaventura, J. M. (2020). Stakeholder engagement in sustainability reporting: A classification model. Corporate Social Responsibility and Environmental Management, 27(5), 2071-2080. https://doi.org/10.1002/csr.1947
Sun, R., & Zainal, D. (2024). Sustainability reporting and stakeholder engagement of Malaysian hotels in social media: the moderating role of media types. Cogent Business & Management, 11(1), 2400616. https://doi.org/10.1080/23311975.2024.2400616
Thomas, C. J., Tuyon, J., Matahir, H., & Dixit, S. (2021). The impact of sustainability practices on firm financial performance: Evidence from Malaysia. Asian Journal of Business Ethics, 1(1), 1-20. https://mar.uitm.edu.my/
Zhou, Y., Lamberton, G., & Charles, M. B. (2023). An Explanatory Model of Materiality in Sustainability Accounting: Integrating Accountability and Stakeholder Heterogeneity. Sustainability (Switzerland), 15(3). https://doi.org/10.3390/su15032700.
Alsayegh, M. F., Rahman, R. A., & Homayoun, S. (2020). Corporate economic, environmental, and social sustainability performance transformation through ESG disclosure. Sustainability (Switzerland), 12(9). https://doi.org/10.3390/su12093910
Ardiana, P. A. (2023). Stakeholder engagement in sustainability reporting by Fortune Global 500 companies: a call for embeddedness. Management Decision, 1-20. https://doi.org/10.1108/MEDAR-12-2019-0666
Bellucci M., Simoni L., Acuti D., & Manetti G. (2019). Stakeholder engagement and dialogic accounting: Empirical evidence in sustainability reporting. Accounting, Auditing and Accountability Journal, 32(5), 1467-1499. https://doi.org/10.1108/AAAJ-09-2017-3158
Boiral, O., & Heras-Saizarbitoria, I. (2020). Sustainability reporting assurance: Creating stakeholder accountability through hyperreality? Journal of Cleaner Production, 243. https://doi.org/10.1016/j.jclepro.2019.118596
Calderon, F., Manuela Jr, W. S., & Briones, D. T. (2023). The impact of sustainability reporting on organizational behaviour from Western and Asian perspectives: a systematic review of literature. Asian Journal of Business Ethics, 1(1), 1-20. https://doi.org/10.1080/20430795.2021.1879560
Dewi, A. A., Saraswati, E., Rahman, A. F., & Atmini, S. (2023). Materiality, stakeholder engagement disclosure, and corporate governance: Critical elements for the quality of sustainability reporting. Cogent Business & Management, 10(1), 1-20. https://doi.org/10.1080/23311975.2023.2175437
Elaigwu, M., Abdulmalik, S. O., & Talab, H. R. (2024). Corporate integrity, external assurance and sustainability reporting quality: evidence from the Malaysian public listed companies. Asia-Pacific Journal of Business Administration, 16(2), 410-440. https://doi.org/10.1108/APJBA-07-2021-0307
Erin, O. A., & Bamigboye, O. A. (2022). Evaluation and analysis of SDG reporting: evidence from Africa. Journal of Accounting & Organizational Change, 18(3), 369-396. https://doi.org/10.1108/JAOC-02-2020-0025
E-Vahdati, S., Wan-Hussin, W. N., & Ling, O. H. (2022). Sustaining the Yellow Heart: responsible business by reducing inequalities at Digi Malaysia. Emerald Emerging Markets Case Studies, 12(1), 1-20. https://doi.org/10.1108/EEMCS-10-2020-0362
Farooq, M.B., Zaman, R., & Nadeem, M. (2021a). AccountAbility’s AA1000AP standard: a framework for integrating sustainability into organisations. Sustainability Accounting, Management and Policy Journal. 12(5), 1108-1139. https://doi.org/10.1108/SAMPJ-05-2020-0166
Farooq, M. B., Zaman, R., Sarraj, D., & Khalid, F. (2021b). Examining the extent of and drivers for materiality assessment disclosures in sustainability reports. Sustainability Accounting, Management and Policy Journal, 12(5), 965-1002. https://doi.org/10.1108/SAMPJ-04-2020-0113
Fauzi, D. R. (2021). Disclosure of Sustainability Report on Financial Performance. Jurnal Akuntansi, Audit Dan Sistem Informasi Akuntansi, 5(1), 53-63. https://doi.org/10.36555/jasa.v5i1.1488
Fusco, F., Pavone, P., & Ricci, P. (2024). Strengthening accountability and sustainability reporting: does stakeholder engagement really work? Evidence from the judicial sector. Social Responsibility Journal, 20(5). https://doi.org/10.1108/SRJ-05-2023-0248
Guix, M., & Font, X. (2020). The Materiality Balanced Scorecard: A framework for stakeholder-led integration of sustainable hospitality management and reporting. International Journal of Hospitality Management, 91, 102634. https://doi.org/10.1016/j.ijhm.2020.102634
Henriques, R., Gaio, C., & Costa, M. (2022). Sustainability Reporting quality and stakeholder engagement assessment: The case of the paper sector at the Iberian level. Sustainability, 14, 14404. https://doi.org/10.3390/su142114404
Iazzi, A., Pizzi, S., Iaia, L., & Turco, M. (2020). Communicating the stakeholder engagement process: A cross‐country analysis in the tourism sector. Corporate Social Responsibility and Environmental Management, 27(4), 1642-1652. https://doi.org/10.1002/csr.1913
Kang, Y. C., Hsiao, H. S., & Ni, J. Y. (2022). The Role of Sustainable Training and Reward in Influencing Employee Accountability Perception and Behavior for Corporate Sustainability. Sustainability (Switzerland), 14(18). https://doi.org/10.3390/su141811589
Kang, E., & Lam, N. B. (2023). The impact of environmental disclosure on initial public offering underpricing: Sustainable development in Singapore. Corporate Social Responsibility and Environmental Management, 1-20. https://doi.org/10.1002/csr.2342
Kurznack, L., Schoenmaker, D., & Schramade, W. (2021). A model of long-term value creation. Journal of Sustainable Finance and Investment. https://doi.org/10.1080/20430795.2021.1920231
Leeson, R., & Kuszewski, J. (2023). GRI and stakeholder engagement: setting standards in the public interest. Sustainability Accounting, Management and Policy Journal, 14(4), 877-883. https://doi.org/10.1108/SAMPJ-06-2022-0329
Lemma, T. T., Negash, M., Lulseged, A., & Maroun, W. (2024). Sustainability assurance and corporate environmental accountability. Business Strategy and the Environment, 33(4). https://doi.org/10.1002/bse.3643
Mavroulidis, M., Vouros, P., Fotiadis, S., Konstantakopoulou, F., Fountoulakis, G., Nikolaou, I., & Evangelinos, K. (2022). Occupational health and safety of multinational construction companies through evaluation of corporate social responsibility reports. Journal of safety research, 81, 45-54. https://doi.org/10.1016/j.jsr.2022.01.005
Ngu, S. B., & Amran, A. (2018a). Materiality disclosure in sustainability reporting: fostering stakeholder engagement. Sustainability Accounting, Management and Policy Journal, 9(2), 175-197. https://doi.org/10.1108/SD-01-2018-0002
Ngu, S. B., & Amran, A. (2019b). The impact of sustainable board capital on sustainability reporting. Social Responsibility Journal, 15(1), 144-164. https://doi.org/10.1108/SD-05-2019-0098
Pasko, O., Marenych, T., Diachenko, O., Levytska, I., & Balla, I. (2021). Stakeholder engagement in sustainability reporting: the case study of Ukrainian public agricultural companies. Agricultural and Resource Economics: International Scientific E-Journal, 7(1), 58-80. http://dx.doi.org/10.22004/ag.econ.310949
Perkiss, S., Bayerlein, L., & Dean, B. A. (2021). Facilitating accountability in corporate sustainability reporting through Spotlight Accounting. Accounting, Auditing and Accountability Journal, 34(2). https://doi.org/10.1108/AAAJ-08-2019-4142
Reimsbach, D., & Braam, G. (2023). Creating social and environmental value through integrated thinking: International evidence. Business Strategy and the Environment, 32(1). https://doi.org/10.1002/bse.3131
Romero, S., Ruiz, S., & Fernandez‐Feijoo, B. (2019). Sustainability reporting and stakeholder engagement in Spain: Different instruments, different quality. Business Strategy and the Environment, 28(1), 221-232. https://doi.org/10.1002/bse.2251
Salvador, R., Barros, M. V., do Prado, G. F., Pagani, R. N., Piekarski, C. M., & de Francisco, A. C. (2021). Knowledge and technology transfer in sustainability reports: Fomenting stakeholder engagement for sustainable development. Corporate Social Responsibility and Environmental Management, 28(1), 251-264. https://doi.org/10.1002/csr.2046
Sarkis-Onofre, R., Catalá-López, F., Aromataris, E., & Lockwood, C. (2021). How to properly use the PRISMA Statement. Systematic Reviews, 10, 1-3. https://doi.org/10.1186/s13643-021-01671-z
Sebrina, N., Taqwa, S., Afriyenti, M., & Septiari, D. (2023). Analysis of sustainability reporting quality and corporate social responsibility on companies listed on the Indonesia stock exchange. Cogent Business & Management, 8(1), 1-20. https://doi.org/10.1080/23311975.2022.2157975
Sehgal, V., Garg, N., & Singh, J. (2023). Impact of sustainability performance & reporting on a firm’s reputation. International journal of system assurance engineering and management, 14(1), 228-240. https://doi.org/10.1007/s13198-022-01782-3
Shalhoob, H., & Hussainey, K. (2023). Environmental, Social and Governance (ESG) Disclosure and the Small and Medium Enterprises (SMEs) Sustainability Performance. Sustainability (Switzerland), 15(1). https://doi.org/10.3390/su15010200
Stocker, F., de Arruda, M. P., de Mascena, K. M., & Boaventura, J. M. (2020). Stakeholder engagement in sustainability reporting: A classification model. Corporate Social Responsibility and Environmental Management, 27(5), 2071-2080. https://doi.org/10.1002/csr.1947
Sun, R., & Zainal, D. (2024). Sustainability reporting and stakeholder engagement of Malaysian hotels in social media: the moderating role of media types. Cogent Business & Management, 11(1), 2400616. https://doi.org/10.1080/23311975.2024.2400616
Thomas, C. J., Tuyon, J., Matahir, H., & Dixit, S. (2021). The impact of sustainability practices on firm financial performance: Evidence from Malaysia. Asian Journal of Business Ethics, 1(1), 1-20. https://mar.uitm.edu.my/
Zhou, Y., Lamberton, G., & Charles, M. B. (2023). An Explanatory Model of Materiality in Sustainability Accounting: Integrating Accountability and Stakeholder Heterogeneity. Sustainability (Switzerland), 15(3). https://doi.org/10.3390/su15032700.
Published
2024-12-01
How to Cite
YUAN FUNG, Chorng; ING SU, Sueh; GEK CHANG, Jacqueline Siak.
A Review of Sustainability Reporting and Stakeholder Engagement: The Future Research Agenda.
International Journal of Business and Technology Management, [S.l.], v. 6, n. 4, p. 1-13, dec. 2024.
ISSN 2682-7646.
Available at: <https://myjms.mohe.gov.my/index.php/ijbtm/article/view/28461>. Date accessed: 24 jan. 2025.
Section
English Section
