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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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    7. 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.
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    11. 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.
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    14. Carol A. Tilt, 2016. "Corporate social responsibility research: the importance of context," International Journal of Corporate Social Responsibility, Springer, vol. 1(1), pages 1-9, December.
    15. Fawad Rauf & Cosmina L. Voinea & Khwaja Naveed & Cosmin Fratostiteanu, 2021. "CSR Disclosure: Effects of Political Ties, Executive Turnover and Shareholder Equity. Evidence from China," Sustainability, MDPI, vol. 13(7), pages 1-18, March.
    16. Abdalla Shwairef & Azlan Amran & Mohammad Iranmanesh & Noor Hazlina Ahmad, 2021. "The mediating effect of strategic posture on corporate governance and environmental reporting," Review of Managerial Science, Springer, vol. 15(2), pages 349-378, February.
    17. Mahadeo, Jyoti Devi & Oogarah-Hanuman, Vanisha & Soobaroyen, Teerooven, 2011. "Changes in social and environmental reporting practices in an emerging economy (2004–2007): Exploring the relevance of stakeholder and legitimacy theories," Accounting forum, Elsevier, vol. 35(3), pages 158-175.
    18. Tibebe Sirak Asfaw & Vida Botes & Lula G. Mengesha, 2017. "The role of NGOs in corporate environmental responsibility practice: evidence from Ethiopia," International Journal of Corporate Social Responsibility, Springer, vol. 2(1), pages 1-9, December.
    19. 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.
    20. 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.
    21. 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).
    22. 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.
    23. 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.
    24. 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.
    25. 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.

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