Abstract:

The purpose of this study is to investigate the role of primary (investors, consumers and employee) and secondary (environment, regulator that requires mandatory environmental disclosure under the Directive 2014/95/EU and standard setters) stakeholder groups on company’s employee-related disclosure. The sample comprised 71 selected listed companies over 6 years. Content analysis was used to measure the extent of employee-related disclosure. The econometric model was estimated using panel random effects.

The extent of the employee-related disclosure is significantly affected by stakeholder groups’ demands. Among primary stakeholder groups only customers, exert a strong influence on employee-related disclosure. As for secondary stakeholder groups, environment, regulator and standard setters, these all greatly influence employee-related disclosure practices. Our study contributes to the understanding of the role of secondary stakeholders such as environment, regulator and standard in employee-related disclosure.