Stakeholder engagement, social auditing and corporate sustainability

Gao, Simon S.; Zhang, Jane J.

Abstract

Purpose
To identify the applicability of social auditing as an approach of engaging stakeholders in assessing and reporting on corporate sustainability and its performance.

Design/methodology/approach
Drawing upon the framework of AA1000 and the social auditing studies, this paper links stakeholder engagement, social auditing and corporate sustainability with a view to applying dialogue‐based social auditing to address corporate sustainability.

Findings
This paper identifies a “match” between corporate sustainability and social auditing, as both aim at improving the social, environmental and economic performance of an organisation, considering the well‐being of a wider range of stakeholders and requiring the engagement of stakeholders in the process. This paper suggests that social auditing through engaging stakeholders via dialogue could be applied to build trusts, identify commitment and promote co‐operation amongst stakeholders and corporations.

Research limitations/implications
This research requires further empirical research into the practicality of social auditing in addressing corporate sustainability and the determination of the limitations of dialogue‐based social auditing.

Practical implications
Social auditing has been identified as a useful mechanism of balancing differing interests among stakeholders and corporations in a democratic business society. The application of social auditing in developing and achieving corporate sustainability has apparently practical implications.

Originality/value
This paper examines the applicability of dialogue‐based social auditing in helping business to move towards sustainability. Social auditing as a process of assessing and reporting on corporate social and environmental performance through engaging stakeholders via dialogue could be applied to build trusts, identify commitment and promote cooperation amongst stakeholders and corporations.

Citation

Gao, S. S., & Zhang, J. J. (2006). Stakeholder engagement, social auditing and corporate sustainability. Business Process Management Journal, 12(6), 722-740. https://doi.org/10.1108/14637150610710891

• Journal Article Type: Article
• Online Publication Date: Nov 1, 2006
• Publication Date: 2006
• Deposit Date: Feb 14, 2008
• Print ISSN: 1463-7154
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• Volume: 12
• Issue: 6
• Pages: 722-740
• DOI: https://doi.org/10.1108/14637150610710891
• Keywords: corporate image; social audit; stakeholder analysis; sustainable development
• Public URL: http://researchrepository.napier.ac.uk/id/eprint/2076