Main Article Content
Abstract
Purpose: This study investigates corporate environmental accountability through the lens of stakeholder expectations and corporate practices. It seeks to understand the dynamics driving corporations to adopt sustainable practices and how these align with stakeholder demands.
Research Design and Methodology: A qualitative case study design was employed to provide an in-depth understanding of the phenomena. The research involved semi-structured interviews with senior executives, sustainability managers, and stakeholders from various corporations. Data was analyzed using thematic analysis to identify critical patterns and themes.
Findings and Discussion: The findings highlight the significant role of stakeholder pressure in shaping corporate environmental accountability. Stakeholders, including consumers, investors, and regulatory bodies, demand transparency and accountability, driving corporations to adopt more sustainable practices. Companies facing robust stakeholder scrutiny are more likely to engage in proactive environmental strategies, integrating sustainability into their core operations and leveraging stakeholder engagement to drive innovation. The study validates legitimacy, stakeholder, and stewardship theories, demonstrating the importance of aligning corporate practices with societal values and ethical leadership in fostering a culture of accountability.
Implications: The research contributes to academic knowledge by integrating multiple theoretical frameworks to understand corporate environmental accountability. It offers actionable insights for corporate leaders to adopt proactive environmental strategies and for policymakers to create regulatory frameworks that encourage sustainable practices. The study’s limitations suggest avenues for future research, including expanding sample sizes and conducting longitudinal studies to examine the evolution of corporate environmental practices.
Keywords
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References
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- Caputo, F., Pizzi, S., Ligorio, L., & Leopizzi, R. (2021). Enhancing environmental information transparency through corporate social responsibility reporting regulation. Business Strategy and the Environment, 30(8), 3470–3484. https://doi.org/10.1002/bse.2814
- Chen, Y., Tang, G., Jin, J., Li, J., & Paillé, P. (2015). Linking Market Orientation and Environmental Performance: The Influence of Environmental Strategy, Employee’s Environmental Involvement, and Environmental Product Quality. Journal of Business Ethics, 127(2), 479–500. https://doi.org/10.1007/s10551-014-2059-1
- Coleman, E. A., Manyindo, J., Parker, A. R., & Schultz, B. (2019). Stakeholder engagement increases transparency, satisfaction, and civic action. Proceedings of the National Academy of Sciences, 116(49), 24486–24491. https://doi.org/10.1073/pnas.190843311
- Crossley, R. M., Elmagrhi, M. H., & Ntim, C. G. (2021). Sustainability and legitimacy theory: The case of sustainable social and environmental practices of small and medium‐sized enterprises. Business Strategy and the Environment, 30(8), 3740–3762. https://doi.org/10.1002/bse.2837
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- Dissanayake, K. (2021). Corporate Social Reporting and Stakeholder Accountability : A Case of A Leading It Firm Corporate Social Reporting and Stakeholder Accountability : A Case of A Leading It Firm Department of Accounting , University of Colombo , Sri Lanka. January. https://doi.org/10.35474/ibarj.v5i1.146
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- Epstein, M. J. (2018). Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Routledge.
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- Khan, M., Serafeim, G., & Yoon, A. (2016). Corporate sustainability: First evidence on materiality. The Accounting Review, 91(6), 1697–1724. https://doi.org/10.2308/accr-51383
- Kuo, F.-I., Fang, W.-T., & LePage, B. A. (2022). Proactive environmental strategies in the hotel industry: eco-innovation, green competitive advantage, and green core competence. Journal of Sustainable Tourism, 30(6), 1240–1261. https://doi.org/10.1080/09669582.2021.1931254
- Lins, K. V, Servaes, H., & Tamayo, A. (2017). Social capital, trust, and firm performance: The value of corporate social responsibility during the financial crisis. The Journal of Finance, 72(4), 1785–1824. https://doi.org/https://doi.org/10.1111/jofi.12505
- Lüdeke‐Freund, F., Gold, S., & Bocken, N. M. P. (2019). A review and typology of circular economy business model patterns. Journal of Industrial Ecology, 23(1), 36–61. https://doi.org/10.1111/jiec.12763
- Ortiz‐de‐Mandojana, N., Aguilera‐Caracuel, J., & Morales‐Raya, M. (2016). Corporate governance and environmental sustainability: The moderating role of the national institutional context. Corporate Social Responsibility and Environmental Management, 23(3), 150–164. https://doi.org/10.1002/csr.1367
- Payne, S. L., & Calton, J. M. (2017). Towards a managerial practice of stakeholder engagement: Developing multi-stakeholder learning dialogues. In Unfolding stakeholder thinking (pp. 121–135). Routledge. https://www.taylorfrancis.com/chapters/edit/10.4324/9781351281881-7/towards-managerial-practice-stakeholder-engagement-stephen-payne-jerry-calton
- Perego, P. M. (2005). Environmental management control. An empirical study on the use of environmental performance measures in management control systems. SI:[Sn].
- Porter, M. E., & Kramer, M. R. (2019). Creating Shared Value BT - Managing Sustainable Business: An Executive Education Case and Textbook (G. G. Lenssen & N. C. Smith (eds.); pp. 323–346). Springer Netherlands. https://doi.org/10.1007/978-94-024-1144-7_16
- Reed, M. S., Vella, S., Challies, E., De Vente, J., Frewer, L., Hohenwallner‐Ries, D., Huber, T., Neumann, R. K., Oughton, E. A., & Sidoli del Ceno, J. (2018). A theory of participation: what makes stakeholder and public engagement in environmental management work? Restoration Ecology, 26, S7–S17. https://doi.org/10.1111/rec.12541
- Rodríguez-Espíndola, O., Cuevas-Romo, A., Chowdhury, S., Díaz-Acevedo, N., Albores, P., Despoudi, S., Malesios, C., & Dey, P. (2022). The role of circular economy principles and sustainable-oriented innovation to enhance social, economic and environmental performance: Evidence from Mexican SMEs. International Journal of Production Economics, 248, 108495. https://doi.org/https://doi.org/10.1016/j.ijpe.2022.108495
- Schaltegger, S., & Hörisch, J. (2017). In Search of the Dominant Rationale in Sustainability Management: Legitimacy- or Profit-Seeking? Journal of Business Ethics, 145(2), 259–276. https://doi.org/10.1007/s10551-015-2854-3
- Suchman, M. C. (1995). Managing Legitimacy: Strategic and Institutional Approaches. Academy of Management Review, 20(3), 571–610. https://doi.org/10.5465/amr.1995.9508080331
- Tackie, G. (2020). Multi-Stakeholder Perspectives of Environmental Accountability Practices in the Mining Sector. International Journal of Accounting and Financial Reporting, 10(4), 38. https://doi.org/10.5296/ijafr.v10i4.17945
- Varadarajan, R. (2017). Innovating for sustainability: a framework for sustainable innovations and a model of sustainable innovations orientation. Journal of the Academy of Marketing Science, 45(1), 14–36. https://doi.org/10.1007/s11747-015-0461-6
- Vieira Nunhes, T., Espuny, M., Lauá Reis Campos, T., Santos, G., Bernardo, M., & Oliveira, O. J. (2022). Guidelines to build the bridge between sustainability and integrated management systems: A way to increase stakeholder engagement toward sustainable development. Corporate Social Responsibility and Environmental Management, 29(5), 1617–1635. https://doi.org/10.1002/csr.2308
- Yin, J. (2017). Institutional drivers for corporate social responsibility in an emerging economy: A mixed-method study of Chinese business executives. Business & Society, 56(5), 672–704. https://doi.org/10.1177/0007650315592856
References
Akor, M. (2023). Business sustainability: understanding the influence of managers and stakeholders on adopting sustainability practices in Nigerian SMEs. http://hdl.handle.net/2436/625340
Alkhodary, D. (2023). Integrating sustainability into strategic management: a path towards long-term business success. International Journal of Professional Business Review, 8(4), e01627–e01627. https://doi.org/10.26668/businessreview/2023.v8i4.1627
Avery, G. (2005). Leadership for sustainable futures: Achieving success in a competitive world. Edward Elgar Publishing.
Bui, M. Le. (2021). Corporate Reputation and Accountability of Corporate Environmental Responsibility : Theoretical Triangulation and Conflicting Accountabilities. 8(8), 21–28. https://doi.org/10.13106/jafeb.2021.vol8.no8.0021
Burke, J. J., Hoitash, R., & Hoitash, U. (2019). The Heterogeneity of Board-Level Sustainability Committees and Corporate Social Performance. Journal of Business Ethics, 154(4), 1161–1186. https://doi.org/10.1007/s10551-017-3453-2
Caputo, F., Pizzi, S., Ligorio, L., & Leopizzi, R. (2021). Enhancing environmental information transparency through corporate social responsibility reporting regulation. Business Strategy and the Environment, 30(8), 3470–3484. https://doi.org/10.1002/bse.2814
Chen, Y., Tang, G., Jin, J., Li, J., & Paillé, P. (2015). Linking Market Orientation and Environmental Performance: The Influence of Environmental Strategy, Employee’s Environmental Involvement, and Environmental Product Quality. Journal of Business Ethics, 127(2), 479–500. https://doi.org/10.1007/s10551-014-2059-1
Coleman, E. A., Manyindo, J., Parker, A. R., & Schultz, B. (2019). Stakeholder engagement increases transparency, satisfaction, and civic action. Proceedings of the National Academy of Sciences, 116(49), 24486–24491. https://doi.org/10.1073/pnas.190843311
Crossley, R. M., Elmagrhi, M. H., & Ntim, C. G. (2021). Sustainability and legitimacy theory: The case of sustainable social and environmental practices of small and medium‐sized enterprises. Business Strategy and the Environment, 30(8), 3740–3762. https://doi.org/10.1002/bse.2837
Deegan, C. M. (2019). Legitimacy theory: Despite its enduring popularity and contribution, time is right for a necessary makeover. Accounting, Auditing & Accountability Journal, 32(8), 2307–2329. https://doi.org/https://doi.org/10.1108/AAAJ-08-2018-3638
Dissanayake, K. (2021). Corporate Social Reporting and Stakeholder Accountability : A Case of A Leading It Firm Corporate Social Reporting and Stakeholder Accountability : A Case of A Leading It Firm Department of Accounting , University of Colombo , Sri Lanka. January. https://doi.org/10.35474/ibarj.v5i1.146
Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). the Impact of Corporate Sustainability on Organizational Processes. Nber Working Paper Series, 1–35. https://doi.org/10.1007/s13398-014-0173-7.2
Epstein, M. J. (2018). Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Routledge.
Fischer, D., Brettel, M., & Mauer, R. (2020). The Three Dimensions of Sustainability: A Delicate Balancing Act for Entrepreneurs Made More Complex by Stakeholder Expectations. Journal of Business Ethics, 163(1), 87–106. https://doi.org/10.1007/s10551-018-4012-1
Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge university press.
Ghassim, B., & Foss, L. (2020). How Do Leaders Embrace Stakeholder Engagement for Sustainability-Oriented Innovation? BT - New Leadership in Strategy and Communication: Shifting Perspective on Innovation, Leadership, and System Design (N. Pfeffermann (ed.); pp. 63–80). Springer International Publishing. https://doi.org/10.1007/978-3-030-19681-3_6
Gurzawska, A. (2020). Towards Responsible and Sustainable Supply Chains – Innovation, Multi-stakeholder Approach and Governance. Philosophy of Management, 19(3), 267–295. https://doi.org/10.1007/s40926-019-00114-z
Herremans, I. M., Nazari, J. A., & Mahmoudian, F. (2016). Stakeholder Relationships, Engagement, and Sustainability Reporting. Journal of Business Ethics, 138(3), 417–435. https://doi.org/10.1007/s10551-015-2634-0
Hussain, S. (2023). Environmental Damage and Global Health : Understanding the Impacts and Proposing Mitigation Strategies. Journal of Big-Data Analytics and Cloud Computing, 8(2), 1–21. https://questsquare.org/index.php/JOURNALBACC/article/view/5/7
Iglesias, O., Markovic, S., Bagherzadeh, M., & Singh, J. J. (2020). Co-creation: A Key Link Between Corporate Social Responsibility, Customer Trust, and Customer Loyalty. Journal of Business Ethics, 163(1), 151–166. https://doi.org/10.1007/s10551-018-4015-y
Khan, M., Serafeim, G., & Yoon, A. (2016). Corporate sustainability: First evidence on materiality. The Accounting Review, 91(6), 1697–1724. https://doi.org/10.2308/accr-51383
Kuo, F.-I., Fang, W.-T., & LePage, B. A. (2022). Proactive environmental strategies in the hotel industry: eco-innovation, green competitive advantage, and green core competence. Journal of Sustainable Tourism, 30(6), 1240–1261. https://doi.org/10.1080/09669582.2021.1931254
Lins, K. V, Servaes, H., & Tamayo, A. (2017). Social capital, trust, and firm performance: The value of corporate social responsibility during the financial crisis. The Journal of Finance, 72(4), 1785–1824. https://doi.org/https://doi.org/10.1111/jofi.12505
Lüdeke‐Freund, F., Gold, S., & Bocken, N. M. P. (2019). A review and typology of circular economy business model patterns. Journal of Industrial Ecology, 23(1), 36–61. https://doi.org/10.1111/jiec.12763
Ortiz‐de‐Mandojana, N., Aguilera‐Caracuel, J., & Morales‐Raya, M. (2016). Corporate governance and environmental sustainability: The moderating role of the national institutional context. Corporate Social Responsibility and Environmental Management, 23(3), 150–164. https://doi.org/10.1002/csr.1367
Payne, S. L., & Calton, J. M. (2017). Towards a managerial practice of stakeholder engagement: Developing multi-stakeholder learning dialogues. In Unfolding stakeholder thinking (pp. 121–135). Routledge. https://www.taylorfrancis.com/chapters/edit/10.4324/9781351281881-7/towards-managerial-practice-stakeholder-engagement-stephen-payne-jerry-calton
Perego, P. M. (2005). Environmental management control. An empirical study on the use of environmental performance measures in management control systems. SI:[Sn].
Porter, M. E., & Kramer, M. R. (2019). Creating Shared Value BT - Managing Sustainable Business: An Executive Education Case and Textbook (G. G. Lenssen & N. C. Smith (eds.); pp. 323–346). Springer Netherlands. https://doi.org/10.1007/978-94-024-1144-7_16
Reed, M. S., Vella, S., Challies, E., De Vente, J., Frewer, L., Hohenwallner‐Ries, D., Huber, T., Neumann, R. K., Oughton, E. A., & Sidoli del Ceno, J. (2018). A theory of participation: what makes stakeholder and public engagement in environmental management work? Restoration Ecology, 26, S7–S17. https://doi.org/10.1111/rec.12541
Rodríguez-Espíndola, O., Cuevas-Romo, A., Chowdhury, S., Díaz-Acevedo, N., Albores, P., Despoudi, S., Malesios, C., & Dey, P. (2022). The role of circular economy principles and sustainable-oriented innovation to enhance social, economic and environmental performance: Evidence from Mexican SMEs. International Journal of Production Economics, 248, 108495. https://doi.org/https://doi.org/10.1016/j.ijpe.2022.108495
Schaltegger, S., & Hörisch, J. (2017). In Search of the Dominant Rationale in Sustainability Management: Legitimacy- or Profit-Seeking? Journal of Business Ethics, 145(2), 259–276. https://doi.org/10.1007/s10551-015-2854-3
Suchman, M. C. (1995). Managing Legitimacy: Strategic and Institutional Approaches. Academy of Management Review, 20(3), 571–610. https://doi.org/10.5465/amr.1995.9508080331
Tackie, G. (2020). Multi-Stakeholder Perspectives of Environmental Accountability Practices in the Mining Sector. International Journal of Accounting and Financial Reporting, 10(4), 38. https://doi.org/10.5296/ijafr.v10i4.17945
Varadarajan, R. (2017). Innovating for sustainability: a framework for sustainable innovations and a model of sustainable innovations orientation. Journal of the Academy of Marketing Science, 45(1), 14–36. https://doi.org/10.1007/s11747-015-0461-6
Vieira Nunhes, T., Espuny, M., Lauá Reis Campos, T., Santos, G., Bernardo, M., & Oliveira, O. J. (2022). Guidelines to build the bridge between sustainability and integrated management systems: A way to increase stakeholder engagement toward sustainable development. Corporate Social Responsibility and Environmental Management, 29(5), 1617–1635. https://doi.org/10.1002/csr.2308
Yin, J. (2017). Institutional drivers for corporate social responsibility in an emerging economy: A mixed-method study of Chinese business executives. Business & Society, 56(5), 672–704. https://doi.org/10.1177/0007650315592856