Corporate Governance Transparency and Stakeholder Engagement on Organizational Reputation through Corporate Accountability in Service Sector Companies

Yuliani Istiqomah; Sarjito Surya; M Mulia Ramadhan

doi:10.61132/jukerdi.v2i4.1522

Authors

Yuliani Istiqomah STIE Gema Widya Bangsa
Sarjito Surya STIE Gema Widya Bangsa
M Mulia Ramadhan STIE Gema Widya Bangsa

DOI:

https://doi.org/10.61132/jukerdi.v2i4.1522

Keywords:

Corporate Accountability, Corporate Governance Transparency, Organizational Reputation, Service Sector Companies, Stakeholder Engagement

Abstract

The increasing demand for transparent, accountable, and stakeholder-oriented business practices has encouraged organizations to strengthen governance mechanisms and build sustainable relationships with stakeholders. This study aims to analyze the influence of corporate governance transparency and stakeholder engagement on organizational reputation through the mediating role of corporate accountability in service sector companies. This research employed a quantitative approach with an explanatory research design. Data were collected using a questionnaire with a five-point Likert scale from employees and managers of service sector organizations selected through purposive sampling. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) by evaluating the measurement model (outer model), structural model (inner model), hypothesis testing, and mediation analysis. The findings indicate that corporate governance transparency and stakeholder engagement have positive and significant effects on corporate accountability and organizational reputation. Furthermore, corporate accountability plays a significant mediating role in strengthening the relationship between governance practices and organizational reputation. This study highlights that integrating transparency, stakeholder involvement, and accountability mechanisms can enhance stakeholder trust, organizational credibility, and long-term reputation. The findings provide practical implications for service sector organizations in developing responsible governance strategies and strengthening sustainable stakeholder relationships.

Downloads

Download data is not yet available.

References

Ammer, M. A., & Sattarov, A. (2025). Enhancing investors’ decision-making through financial risk management: Role of corporate governance and financial communication transparency. Decision Making: Applications in Management and Engineering, 8(2), 376–394. https://doi.org/10.31181/dmame8220251527

Arun, K., Nazrin, A., Padmanabhan, S., Vedavyasa, K., Devipriya, H., & Krishnakumar, U. (2024). Corporate sustainability through stakeholder engagement: A review on Indian corporates. Proceedings of the 15th International Conference on Advances in Computing, Control, and Telecommunication Technologies (ACT 2024), 2, 2455–2467.

Avidar, R. (2025). On organizational reputation: A culturally embedded organizational reputation model. In Intercultural public relations: Insights from the Middle East (pp. 50–71). Routledge. https://doi.org/10.4324/9781003368366-3

Bhimavarapu, V. M., Rastogi, S., & Mulay, P. (2023). A bibliometric study on corporate transparency and disclosures. FIIB Business Review, 12(2), 138–157. https://doi.org/10.1177/23197145231151790

Buhmann, K., Fonseca, A., Andrews, N., & Amatulli, G. (2024). The Routledge handbook on meaningful stakeholder engagement. Routledge. https://doi.org/10.4324/9781003388227

Carroll, C. E., & Olegario, R. (2020). Pathways to corporate accountability: Corporate reputation and its alternatives. Journal of Business Ethics, 163(2), 173–181. https://doi.org/10.1007/s10551-019-04228-2

Ebert, C., Vizcaino, A., & Manjavacas, A. (2020). IT governance. IEEE Software, 37(6), 13–20. https://doi.org/10.1109/MS.2020.3016099

Häberlein, L., & Hövel, P. (2023). Importance and necessity of stakeholder engagement. In Lecture Notes in Computer Science (Vol. 13875, pp. 38–53). Springer. https://doi.org/10.1007/978-3-031-33177-0_3

Javed, M., Akhtar, M. W., Husnain, M., Lodhi, R., & Emaan, S. (2020). A stakeholder-centric paradigm bids well for the “business case”: An investigation through moderated-mediation model. Corporate Social Responsibility and Environmental Management, 27(6), 2563–2577. https://doi.org/10.1002/csr.1976

Khalfi, A., & Bami, A. (2025). Environmental, social, and governance (ESG) in corporate governance: A framework for resilience. GeoJournal, 90(5). https://doi.org/10.1007/s10708-025-11474-7

Khatri, I., Giskås, P. E., Kyrrø, A. K., & Kjærland, F. (2025). Corporate governance mechanisms and non-financial disclosure quality: Evidence from sustainability committee, external CSR assurance, and stakeholder engagement. International Review of Financial Analysis, 107, Article 104645. https://doi.org/10.1016/j.irfa.2025.104645

Lane, A. B., & Devin, B. (2018). Operationalizing stakeholder engagement in CSR: A process approach. Corporate Social Responsibility and Environmental Management, 25(3), 267–280. https://doi.org/10.1002/csr.1460

Mirza, H. H., Hussain, H., Hussain, R. Y., Ahmed, M. W., & Adil, M. (2024). Corporate disclosure and transparency as a tool of socially responsible risk management. In Corporate risk mitigation through socially responsible governance (pp. 91–104). IGI Global. https://doi.org/10.4018/979-8-3693-5733-0.ch004

Park, H., Kim, Y., & Popelish, B. (2021). Corporate social responsibility and stakeholder engagement: A content analysis of PRSA Silver Anvil Award-winning CSR campaigns. Journal of Sustainability Research, 3(3). https://doi.org/10.20900/jsr20210015

Rajawat, S., & Mahajan, R. (2025). Stakeholder engagement through the lens of Indian ethos: A study of Indian banking. In Business Management and Ethics: Insights from Indian Ethos (pp. 83–107). Emerald Publishing. https://doi.org/10.1108/978-1-83549-254-320251005

Saidakhmedova, A. M. (2024). Corporate governance in joint-stock companies: Challenges and opportunities for adopting international standards. In Advanced Series in Management (Vol. 33A, pp. 57–64). Emerald Publishing. https://doi.org/10.1108/S1877-63612024000033A007

Salin, A. S. A. P., Ismail, Z., & Smith, M. (2024). The impact of corporate disclosure and website informativeness on enhancing corporate governance and performance. Journal of Governance and Regulation, 13(4 Special Issue), 306–315. https://doi.org/10.22495/jgrv13i4siart9

Sridharan, A., & Kumar, S. (2024). Corporate governance for sustainable development. In Global trends in governance and policy paradigms (pp. 106–125). IGI Global. https://doi.org/10.4018/9798369317426.ch006

Tourky, M., Osman, S., & Harvey, W. S. (2023). Aligning employee and organizational values to build organizational reputation. Asian Business & Management, 22(4), 1618–1648. https://doi.org/10.1057/s41291-023-00223-8

Usman, Q. M. (2021). Corporate governance in South Asian countries: An overview. In Development, governance and gender in South Asia: Perspectives, issues and challenges (pp. 125–137). Springer. https://doi.org/10.1007/978-981-16-5109-0_8

Vrontis, D., Iazzi, A., Maizza, A., & Cavallo, F. (2022). Stakeholder engagement in the hospitality industry: An analysis of communication in SMEs and large hotels. Journal of Hospitality and Tourism Research, 46(5), 923–945. https://doi.org/10.1177/1096348020936351