Abstract
The research aims to identify indicators of representative information on sustainability from the cooperative organizations’ primary stakeholders’ perspective to mitigate information asymmetry. The study develops in seven stages: the primary stakeholders’ selection and training; the evidence survey; the triangulation between stakeholder responses, forming an indicators list; the indicators analysis by specialists; tests for indicators disclosure; and the indicators validation through the disclosure analysis. As a result, a list contains 61 sustainability indicators from the primary stakeholders’ perspective, in four pillars: economic, 20; social, 18; environmental, 13; and cultural, 10. With the cooperative organizations’ websites disclosure analysis, we found that the disclosure policies focus more on information asymmetry mitigating in the pillars: cultural and social, with the environmental and economic being neglected. Therefore, the procedures for disclosing information on sustainability have weaknesses. These policies reduce the primary stakeholders’ reliability about the cooperatives management system respective, limiting the primary stakeholders’ perspective on the cooperative organization value.
Highlights
The problem established by information asymmetry, which refers to the adverse selection and moral risk emergence possibility [1,2], can support the relationship between cooperative organizations managers and stakeholders
This article contributes to the cooperative organizations themselves by presenting a sustainabilityrepresentative information indicators list for information asymmetry mitigation between them and their primary stakeholders, which can be used to establish strategic disclosure policies
The research results presentation and discussion divide into the indicators survey stages and the indicators disclosure analysis on the cooperative organizations’ websites
Summary
The problem established by information asymmetry, which refers to the adverse selection and moral risk emergence possibility [1,2], can support the relationship between cooperative organizations managers and stakeholders. The research problem refers to the need to create indicators that allow contributions as a guide for managers to meet the stakeholders’ demand on cooperatives’ sustainability representative information [11,13]. It is necessary to consider weakness in the managers’ communication with stakeholders related to other problems, such as a lack of training or the guide inexistence for a better disclosure policy that can meet the demand for information In this regard, this article contributes to the cooperative organizations themselves by presenting a sustainabilityrepresentative information indicators list for information asymmetry mitigation between them and their primary stakeholders, which can be used to establish strategic disclosure policies. It contributes to regulatory and supervisory bodies that would be able to use the indicators list, setting disclosure standards for cooperative organizations, knowing these indicators are of primary stakeholders’ interest and considered for the cooperative organizations’ legitimization with the communities
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