Exploring the need for environmental, social, and governance disclosure strategy from the shareholders’ perspective

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Abstract

Corporations are now integrating environmental, social, and governance (ESG) disclosure and sustainability into their business strategy to enhance their reputation, win the trust of stakeholders, and build a more resilient and sustainable future for both themselves and the world. The paper aims to measure ESG disclosure by Indian companies and the perspective of stakeholders. To meet the research objectives and understand the stakeholder perspective on the three ESG disclosure norms, and ESG reporting including environmental factors, social factors and governance factors on 10 aspects, the data from 569 individuals were collected from accountants, managers, employees, investors, and other beneficiaries in different parts of India. The data were analysed using multiple regression techniques to determine whether stakeholders’ perspectives were met and achieved widespread recognition of the inclusion of ESG disclosures and sustainability enhancements. As a result, it was discovered that the cost of disclosing information should be as low as possible to support businesses dedicated to ESG reporting and sustainability. However, the attraction of working for organizations that are good stewards of the environment and society serves to increase interest in ESG reporting among other stakeholders, such as employees. The relevance of the study is that it provides an outcome that the corporation should invest in new technology or platforms to provide more timely data and high-quality disclosure processes for ESG disclosure practices.

Keywords: ESG Disclosure, Environmental, Social, Governance, Integrated Reporting

Authors’ individual contribution: Conceptualization — V.C.; Methodology — V.C.; Software — R.B.S.; Investigation — V.C., S.G., N.A.-Z., and A.S.; Writing — Original Draft — V.C.; Writing — Review & Editing — N.A.-Z. and A.S., Supervision — R.B.S. and S.G.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M410, M12, O13, O44, O47

Received: 03.10.2023
Accepted: 25.06.2024
Published online: 27.06.2024

How to cite this paper: Chouhan, V., Sharma, R. B., Goswami, S., Al-Zaimoor, N., & Sharma, A. (2024). Exploring the need for environmental, social, and governance disclosure strategy from the shareholders’ perspective. Corporate & Business Strategy Review, 5(3), 81–93. https://doi.org/10.22495/cbsrv5i3art8