An Explanatory Model of Materiality in Sustainability Accounting: Integrating Accountability and Stakeholder Heterogeneity

Yining Zhou (), Geoff Lamberton () and Michael B. Charles
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Yining Zhou: Faculty of Business, Law and Arts, Southern Cross University, Bilinga 4225, Australia
Geoff Lamberton: Faculty of Business, Law and Arts, Southern Cross University, Bilinga 4225, Australia
Michael B. Charles: Faculty of Business, Law and Arts, Southern Cross University, Bilinga 4225, Australia

Sustainability, 2023, vol. 15, issue 3, 1-22

Abstract: This study aims to advance the conceptualisation of materiality in sustainability accounting by tackling theoretical deficiencies that remain unresolved in the current understanding of materiality. In doing so, we integrate accountability and stakeholder heterogeneity into a new conceptual model of materiality that is used to explain how an organisation sets priorities in reporting and in managing different sustainability issues in a heterogeneous stakeholder environment. The model is illustrated with reference to events involving the multinational organisation Exxon. The empirical accounts of the Exxon case presented herein fortify our knowledge claims for this model and, moreover, confirm its explanatory potential with respect to the materiality phenomenon, including how unaccountable behaviour is dealt with in materiality practices.

Keywords: materiality; sustainability; sustainability accounting; accountability; stakeholders (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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