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Extending the application of stakeholder influence strategies to environmental disclosures

Author

Listed:
  • Evangeline Elijido‐Ten
  • Louise Kloot
  • Peter Clarkson

Abstract

Purpose - This paper aims to provide insights into stakeholder expectations regarding the types of disclosures a firm should make, and if dissatisfied with the disclosure policy, whether it will use different intervention strategies in an attempt to induce the desired disclosure outcome. Design/methodology/approach - An inductive qualitative framework is used in the study. In‐depth interviews, triangulated against relevant web site and media releases, are used to identify the salient stakeholders and the major environmental issues in Malaysia. Then an experimental approach is used based on role‐playing whereby experienced participants are introduced to hypothetical vignettes that relate to environmental issues identified. Findings - The results indicate that the preferred form of disclosure is for the firms to “defend” the reasons behind the environmental event and/or explain what has been done to rectify the situation. With relatively few exceptions, the preferred strategies chosen by various participants align well with the influence strategies identified by Frooman. The findings confirm that although Frooman's model is useful in predicting stakeholder influence strategies, its effectiveness is tempered by the level of significance placed on the event by the stakeholders. Research limitations/implications - Although based on a small sample, the results suggest that stakeholder theory has much to offer in terms of understanding management/stakeholder behaviour and corporate environmental disclosures. Originality/value - The paper extends the application of stakeholder influence strategies in the “environmental reporting” domain. Likewise, it attempts to address the scarcity of literature taking the view of a wide array of stakeholders and how they choose to influence the firm. Finally, it confirms that stakeholder theory can be extended to aid the understanding of events in non‐western developing economies such as Malaysia.

Suggested Citation

  • Evangeline Elijido‐Ten & Louise Kloot & Peter Clarkson, 2010. "Extending the application of stakeholder influence strategies to environmental disclosures," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 23(8), pages 1032-1059, October.
    • Handle: RePEc:eme:aaajpp:v:23:y:2010:i:8:p:1032-1059
    DOI: 10.1108/09513571011092547
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    3. Evangeline O. Elijido-Ten & Peter Clarkson, 2019. "Going Beyond Climate Change Risk Management: Insights from the World’s Largest Most Sustainable Corporations," Journal of Business Ethics, Springer, vol. 157(4), pages 1067-1089, July.
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    7. Georg Thomas, 2020. "Digital Maturity of HR in SMEs," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 6, ejes_v6_i.
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    9. Breeda Comyns, 2016. "Determinants of GHG Reporting: An Analysis of Global Oil and Gas Companies," Journal of Business Ethics, Springer, vol. 136(2), pages 349-369, June.
    10. Bonilla-Priego, Mª Jesús & Font, Xavier & Pacheco-Olivares, Mª del Rosario, 2014. "Corporate sustainability reporting index and baseline data for the cruise industry," Tourism Management, Elsevier, vol. 44(C), pages 149-160.
    11. Amoako, Kwame Oduro & Lord, Beverley R. & Dixon, Keith, 2021. "Narrative accounting for mining in Ghana: An old defence against a new threat?," Resources Policy, Elsevier, vol. 74(C).
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    13. Elijido-Ten, Evangeline, 2011. "Media coverage and voluntary environmental disclosures: A developing country exploratory experiment," Accounting forum, Elsevier, vol. 35(3), pages 139-157.
    14. Nik Nazli Nik Ahmad & Noor Afzalina Mohamad, 2014. "Environmental Disclosures by the Malaysian Construction Sector: Exploring Extent and Quality," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 21(4), pages 240-252, July.
    15. Zarzycka Ewelina & Krasodomska Joanna & Dobija Dorota, 2021. "Stakeholder Engagement in Corporate Social Practices and Non-Financial Disclosures: A Systematic Literature Review," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 29(1), pages 112-135, March.
    16. Cristina Gianfelici & Andrea Casadei & Federica Cembali, 2018. "The Relevance of Nationality and Industry for Stakeholder Salience: An Investigation Through Integrated Reports," Journal of Business Ethics, Springer, vol. 150(2), pages 541-558, June.
    17. Font, Xavier & Walmsley, Andreas & Cogotti, Sara & McCombes, Lucy & Häusler, Nicole, 2012. "Corporate social responsibility: The disclosure–performance gap," Tourism Management, Elsevier, vol. 33(6), pages 1544-1553.
    18. Thamir Al Barrak & Kaouther Chebbi & Abdullah A. Aljughaiman & Mohammed Albarrak, 2023. "Exploring the Interplay between Sustainability and Debt Costs in an Emerging Market: Does Financial Distress Matter?," Sustainability, MDPI, vol. 15(12), pages 1-19, June.
    19. Nurunnabi, Mohammad, 2018. "Perceived costs and benefits of IFRS adoption in Saudi Arabia: An exploratory study," Research in Accounting Regulation, Elsevier, vol. 30(2), pages 166-175.
    20. Konstantinos Evangelinos & Stefanos Fotiadis & Antonis Skouloudis & Nadeem Khan & Foteini Konstandakopoulou & Ioannis Nikolaou & Shaun Lundy, 2018. "Occupational health and safety disclosures in sustainability reports: An overview of trends among corporate leaders," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 961-970, September.
    21. L. Bouten, 2011. "CSR reporting: The mastery of the internal dynamics," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 11/721, Ghent University, Faculty of Economics and Business Administration.
    22. Barone, Elisabetta & Ranamagar, Nathan & Solomon, Jill F., 2013. "A Habermasian model of stakeholder (non)engagement and corporate (ir)responsibility reporting," Accounting forum, Elsevier, vol. 37(3), pages 163-181.
    23. Andrea Pérez & Carlos López & María del Mar García-De los Salmones, 2017. "An empirical exploration of the link between reporting to stakeholders and corporate social responsibility reputation in the Spanish context," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 30(3), pages 668-698, March.
    24. Belen Fernandez-Feijoo & Silvia Romero & Silvia Ruiz, 2014. "Effect of Stakeholders’ Pressure on Transparency of Sustainability Reports within the GRI Framework," Journal of Business Ethics, Springer, vol. 122(1), pages 53-63, June.
    25. Filippo Vitolla & Nicola Raimo & Michele Rubino & Antonello Garzoni, 2019. "How pressure from stakeholders affects integrated reporting quality," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1591-1606, November.

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