Stakeholder engagement and corporate sustainability reporting quality
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The study investigates the role of stakeholder engagement in determining sustainability reporting quality. For this reason, the study makes a distinction between different levels and types of stakeholder engagement. Levels of stakeholder engagement include high and low levels. Types of stakeholder engagement are comprised of NGO and non-NGO types, where NGO type of stakeholder engagement assumes business interaction with non-governmental organizations. In addition, direct and indirect effects of stakeholder engagement via corporate sustainability performance as a mediator are analyzed using a sample of Dutch companies, who have voluntarily disclosed their sustainability performance information during the observation period of three years (2015-2017). The results show that stakeholder engagement of high level has a strong direct positive effect on sustainability reporting quality in a short term. NGO type of stakeholder engagement does not appear to be directly associated with enhanced sustainability reporting quality. Finally, high level and NGO-type of stakeholder engagement do not effect sustainability reporting quality indirectly via influence on corporate sustainability performance. Keywords: stakeholder engagement, sustainability reporting quality, corporate sustainability performance, NGO.
Faculteit der Managementwetenschappen