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The Consequences of Integrating Stakeholder Engagement in Sustainable Development (Environmental Perspectives)

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  • Milad Abdelnabi Salem
  • Fekri Shawtari
  • Mohd Farid Shamsudin
  • Hafezali Bin Iqbal Hussain

Abstract

This paper aims to identify the consequences of integrating stakeholder engagement in sustainable development represented by environmental performance using data from 226 industrial corporations. To the best of our knowledge, there is no empirical evidence on how three levels of stakeholder integration (knowledge, interaction and adoptive behaviour) might affect environmental performance as represented by a reduction in both resource usage and waste. Additionally, related research has been conducted in developed countries, with little attention being directed to developing countries. The paper aims to fill these gaps by providing empirical evidence on how the stakeholder theory might work in less†developed countries. The study opts for a cross†sectional study using a self†reported questionnaire. Structural equation modelling indicated that engaging stakeholders in corporate activities would result in less damage to the environment. However, the knowledge of stakeholders per se will not lead to any reduction in either waste or resource usage. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

Suggested Citation

  • Milad Abdelnabi Salem & Fekri Shawtari & Mohd Farid Shamsudin & Hafezali Bin Iqbal Hussain, 2018. "The Consequences of Integrating Stakeholder Engagement in Sustainable Development (Environmental Perspectives)," Sustainable Development, John Wiley & Sons, Ltd., vol. 26(3), pages 255-268, May.
    • Handle: RePEc:wly:sustdv:v:26:y:2018:i:3:p:255-268
    DOI: 10.1002/sd.1699
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    1. Obsatar Sinaga & Mohd Haizam Mohd Saudi & Djoko Roespinoedji & Mohd Shahril Ahmad Razimi, 2019. "The Dynamic Relationship between Natural Gas and Economic Growth: Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 388-394.
    2. Wendy M. Rauw & Luis Gomez‐Raya & Laura Star & Margareth Øverland & Evelyne Delezie & Mikelis Grivins & Karen T. Hamann & Marco Pietropaoli & Michiel T. Klaassen & Gunnar Klemetsdal & María G. Gil & O, 2023. "Sustainable development in circular agriculture: An illustrative bee↺legume↺poultry example," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 639-648, April.
    3. Muddassar Sarfraz & Ilhan Ozturk & Sunghoon Yoo & Muhammad Ali Raza & Heesup Han, 2023. "Toward a new understanding of environmental and financial performance through corporate social responsibility, green innovation, and sustainable development," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-17, December.
    4. Víctor Amor‐Esteban & Ma‐Purificación Galindo‐Villardón & Isabel‐María García‐Sánchez & Fátima David, 2019. "An extension of the industrial corporate social responsibility practices index: New information for stakeholder engagement under a multivariate approach," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(1), pages 127-140, January.
    5. Abdul Waheed & Qingyu Zhang, 2022. "Effect of CSR and Ethical Practices on Sustainable Competitive Performance: A Case of Emerging Markets from Stakeholder Theory Perspective," Journal of Business Ethics, Springer, vol. 175(4), pages 837-855, February.
    6. Khwaja Naveed & Fahad Khalid & Cosmina L. Voinea & Nadine Roijakkers & Cosmin Fratostiteanu, 2023. "Board gender diversity and corporate environmental commitment: A subnational perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4970-4990, November.
    7. Samuel Adomako & Mai Dong Tran, 2022. "Stakeholder management, CSR commitment, corporate social performance: The moderating role of uncertainty in CSR regulation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1414-1423, September.
    8. Andrew Mzembe, 2021. "The psychological distance and construal level perspectives of sustainable value creation in SMEs," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(2), pages 465-478, March.
    9. Muhammad Haseeb & Marcin Lis & Ilham Haouas & Leonardus WW Mihardjo, 2019. "The Mediating Role of Business Strategies between Management Control Systems Package and Firms Stability: Evidence from SMEs in Malaysia," Sustainability, MDPI, vol. 11(17), pages 1-20, August.
    10. Víctor Amor‐Esteban & María Purificación Galindo‐Villardón & Isabel‐María García‐Sánchez, 2020. "Bias in composite indexes of CSR practice: An analysis of CUR matrix decomposition," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1914-1936, July.
    11. Abdul Waheed & Jianhua Yang, 2019. "Effect of corporate social responsibility disclosure on firms' sales performance: A perspective of stakeholder engagement and theory," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(3), pages 559-566, May.
    12. Mark Anthony Camilleri, 2020. "European environment policy for the circular economy: Implications for business and industry stakeholders," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(6), pages 1804-1812, November.
    13. Andrzej Janowski, 2020. "Philanthropy and the Contribution of Andrew Carnegie to Corporate Social Responsibility," Sustainability, MDPI, vol. 13(1), pages 1-26, December.

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