Deriving a Stakeholder Consensus Measure to Benchmark and Improve Firm ESG Performance
Type
conference contribution
Date Issued
2025-09
Author(s)
Abstract
This paper examines how unstructured data can be utilized to benchmark and enhance a firm’s sustainability performance. While the integration of environmental, social, and governance (ESG) considerations into management control systems is still developing, new data sources and practices are reshaping how sustainability is measured and managed. Using a three-phase approach, we first determine a stakeholder consensus measure based on ESG materiality matrix disclosures, which reflect both internal and external stakeholders’ ESG priorities. Applying optical character recognition, we extract data from the materiality matrices of a sample of firms based in the United States, revealing significant variation in stakeholder consensus. In the second phase, we test the downside risk hypothesis, which posits that stakeholder consensus could serve as a form of protection against ESG risks. Results from a propensity score matching analysis indicate modest evidence that higher stakeholder consensus is associated with fewer ESG incidents. In the third phase, we test the upside opportunity hypothesis, which views stakeholder consensus as a basis for innovation and value creation. We do not find evidence to support this view. This study introduces a novel method for deriving management accounting measures from unstructured data and highlights the potential and limitations of using stakeholder consensus to inform sustainability-focused control practices.
Language
English
Keywords
Stakeholder consensus measure
unstructured ESG data
sustainability performance management
propensity score matching
management accounting
HSG Classification
contribution to scientific community
Publisher place
Barcelona
Event Title
13th EIASM Conference on Performance Measurement and Management Control
Event Location
Barcelona
Event Date
September 8-10, 2025
Subject(s)
Division(s)