Transparency and Accountability in Environmental Disclosures: Addressing the Negative Impacts on Stakeholder Engagement in South Africa
Transparency and Accountability in Environmental Disclosures: Addressing the Negative Impacts on Stakeholder Engagement in South Africa

Summary/Abstract: This study examines the gap between corporate environmental disclosures and actual practices among listed companies and state-owned enterprises in South Africa. Despite adopting frameworks such as GRI and King IV, companies often omit negative environmental impacts, eroding stakeholder trust. Using a qualitative approach, the study analysed integrated and sustainability reports from ten companies (six JSE-listed and four state-owned), seven stakeholder interviews, and five environmental court cases covering 2015–2020. Thematic analysis revealed that more than 60% of sampled firms failed to disclose environmental fines, community grievances, or litigation, while media reviews identified six cases of unreported environmental violations. Three firms incurred fines between R2 million and R18 million without transparent disclosure. These omissions highlight systemic greenwashing and weak regulatory enforcement. Findings further show that civil society protests and litigation have become alternative mechanisms of accountability in contexts of governance failure. The study contributes to corporate governance and stakeholder theory by exposing how selective disclosure undermines the ethical purpose of integrated reporting. It calls for stronger enforcement, inclusive stakeholder participation, and transparency reforms to ensure that sustainability reporting reflects reality and advances environmental justice in South Africa.

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