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The article revolves around the issue of stakeholder’s engagement where organizations involve relevant stakeholders in the achievement of targeted outcomes. They further continue to argue that stakeholders are involved in different ways in an organization such as identification of issues that are significant, the company’s performance and the strategy to communicate the performance. Hence, stakeholder engagement tends to have enormous significance such are equitability and sustainability, better management of risk, allows pool of resources and understanding of complex environments (Rinaldi et al, 2014). Additionally, it’s evident that stakeholder engagement and dialogue tends to have a significant role for instance, there could be management of projects in community planning. Hence, we could state that when fulfilling stakeholder engagement there is also the need of having a transparent and sustainable accounting process.
The article has further focused on some principles of responsible investments such as incorporation of ESG into ownership policies and practice, seeking appropriate disclosure, promoting acceptance and implementation and reporting of activities for implementation of principles (Rinaldi et al, 2014).
There is also empirical research by Archel et al (2011) on governmental CSR programs which shows that stakeholder consultation was a problematic practice. Evidence provided shows that stakeholder engagement wasn’t genuinely designed to solicit views from stakeholders. But, it was for finalization of output which involves engagement initiatives for business dominance ideology. This created the need of sustainability and accountability in businesses reports.
In conclusion, the article effectively argues that to achieve significant improvement in business sustainability, dialogue mechanism tends to empower stakeholders. It also assists in social and environmental reporting which makes business holistic in regards to sustainable practice. Lastly, the authors perceive that there exist considerable research on the best sustainable approaches that could be adopted by a business.
Rinaldi, L., Unerman, J. and Tilt, C., 2014. The role of stakeholder engagement and dialogue within the sustainability accounting and reporting process. Sustainability accounting and accountability, pp.86-107.
Archel, P., Husillos, J. and Spence, C., 2011. The institutionalisation of unaccountability: Loading the dice of Corporate Social Responsibility discourse. Accounting, Organizations and Society, 36(6), pp.327-343.
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