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An Explanatory Model of Materiality in Sustainability Accounting: Integrating Accountability and Stakeholder Heterogeneity

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  • Yining Zhou

    (Faculty of Business, Law and Arts, Southern Cross University, Bilinga 4225, Australia
    Australian National Institute of Management and Commerce, Eveleigh 2015, Australia)

  • Geoff Lamberton

    (Faculty of Business, Law and Arts, Southern Cross University, Bilinga 4225, Australia)

  • Michael B. Charles

    (Faculty of Business, Law and Arts, Southern Cross University, Bilinga 4225, Australia)

Abstract

This study aims to advance the conceptualisation of materiality in sustainability accounting by tackling theoretical deficiencies that remain unresolved in the current understanding of materiality. In doing so, we integrate accountability and stakeholder heterogeneity into a new conceptual model of materiality that is used to explain how an organisation sets priorities in reporting and in managing different sustainability issues in a heterogeneous stakeholder environment. The model is illustrated with reference to events involving the multinational organisation Exxon. The empirical accounts of the Exxon case presented herein fortify our knowledge claims for this model and, moreover, confirm its explanatory potential with respect to the materiality phenomenon, including how unaccountable behaviour is dealt with in materiality practices.

Suggested Citation

  • Yining Zhou & Geoff Lamberton & Michael B. Charles, 2023. "An Explanatory Model of Materiality in Sustainability Accounting: Integrating Accountability and Stakeholder Heterogeneity," Sustainability, MDPI, vol. 15(3), pages 1-22, February.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2700-:d:1055277
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    References listed on IDEAS

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