The Consequences of Integrating Stakeholder Engagement in Sustainable Development (Environmental Perspectives)

Abstract

This paper aims to identify the consequences of integrating stakeholder engagement in sustainable development represented by environmental performance using data from 226 industrial corporations. To the best of our knowledge, there is no empirical evidence on how three levels of stakeholder integration (knowledge, interaction and adoptive behaviour) might affect environmental performance as represented by a reduction in both resource usage and waste. Additionally, related research has been conducted in developed countries, with little attention being directed to developing countries. The paper aims to fill these gaps by providing empirical evidence on how the stakeholder theory might work in less-developed countries. The study opts for a cross-sectional study using a self-reported questionnaire. Structural equation modelling indicated that engaging stakeholders in corporate activities would result in less damage to the environment. However, the knowledge of stakeholders per se will not lead to any reduction in either waste or resource usage. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment.