Volume 2 Issue 4 | 2025 | View PDF
Paper Id:IJMSM-V2I4P109
doi: 10.71141/30485037/V2I4P109

Stakeholder Engagement and the Quality of Sustainability Reporting: Evidence from Energy and Basic Materials Firms in Emerging Markets

Emrinaldi Nur DP, Enny Susilowati Mardjono, Ruhul Fitrios

Citation:
Emrinaldi Nur DP, Enny Susilowati Mardjono, Ruhul Fitrios, "Stakeholder Engagement and the Quality of Sustainability Reporting: Evidence from Energy and Basic Materials Firms in Emerging Markets" International Journal of Multidisciplinary on Science and Management, Vol. 2, No. 4, pp. 74-83, 2025.

Abstract:
This study investigates the influence of stakeholder engagement on the quality of sustainability reporting within the energy and basic materials sectors in an emerging market context. Grounded in stakeholder and legitimacy theories, the research examines how different engagement dimensions customers, media, shareholders, and competitors shape the depth and transparency of corporate sustainability reports. Using a quantitative approach, the study employs content analysis to assess the sustainability reports of 30 firms listed on the Indonesia Stock Exchange between 2021 and 2023. Multiple logistic regression is used to test the hypothesized relationships between stakeholder engagement variables and report quality. The results reveal that customers’ and shareholders’ engagement significantly enhance the quality of sustainability disclosures, whereas media and competitors’ engagement show weaker effects. These findings extend existing sustainability reporting literature by integrating multiple stakeholder dimensions into a single analytical framework and providing empirical evidence from emerging markets. Practically, the study highlights the importance of proactive stakeholder interaction in fostering transparency and accountability in corporate sustainability practices.

Keywords: Sustainability Reports Quality, Stakeholders’ Engagement.

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