Striking a Balance between Stakeholders’ Information Needs and Companies’ Sustainable Development Reports: An Overview of Selected African Companies

Abstract

Companies are under increasing pressure from key stakeholders to be transparent about their values, principles and performance as regards sustainable development. This study therefore is aimed at ascertaining the extent to which stakeholders’ information needs are met by the companies’ reports, effect of sustainability reporting on company’s performance and the means of striking a balance for an enhanced sustainable development. To achieve the objectives, the researchers made use of primary and secondary data. Primary data were obtained using a survey method whereby 250 copies of questionnaires were administered to selected stakeholders out of which only 207 were duly filled and returned. The data obtained were analyzed using descriptive statistics and regression analysis with the aid of SPSS Version 22. The source of secondary data is companies’ reports which were examined to see the issues reported using content analysis. The result of the analysis showed that the level of reporting on those issues which are of concern to stakeholders is currently low. On the environmental issues, whilst some responsible companies are interested in the responsible care indicators which are concerned with levels of emissions or discharges, stakeholders are interested on what is being done to reduce emissions and discharges of toxic waste, and restoration of communities already affected by companies’ activities.  The researchers also found that reporting on stakeholders’ engagements can benefit companies. We therefore recommend that a balance should be struck, through disclosure of that information which are not part of companies’ statutory disclosure requirement but are of interest to stakeholders and can be provided by companies’ for enhanced performance and sustainable development.