The Extent of Stakeholder Engagement in Sustainability Accounting and Reporting: Does Empowerment of Stakeholders Really Exist?

Abstract

Abstract This chapter aims to determine the extent of stakeholder engagement in the sustainability accounting and reporting process in three Australian local councils. The frameworks of Arnstein (1969) and Friedman and Miles (2006) and the case study methodology are used to assess the stakeholder engagement practices of three best practice Australian local councils. The findings highlight the existence of five levels of stakeholder engagement ranging from informing to empowering. However, the extent of stakeholder engagement varied depending on the nature and purpose of engagement. This study adds to the limited literature on stakeholder engagement in sustainability accounting and reporting, especially in a public sector context. This study provides practical insights into engagement with stakeholders and is useful to both organizations and their stakeholders. Although focused on a public sector and Australian context, the findings of this study have implications for stakeholder engagement in various local and global contexts.