The Roles of Transparency and Accountability on Stakeholder Engagement in Malaysia Companies: the Mediating Effect of Trust

Kuan, Kit Yaw (2024) The Roles of Transparency and Accountability on Stakeholder Engagement in Malaysia Companies: the Mediating Effect of Trust. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

Effective stakeholder engagement is essential for ensuring transparency, accountability, and trust within organisations, particularly in the aftermath of corporate scandals. This study discusses the interplay between transparency, accountability, trust, and stakeholder engagement in the Malaysian corporate sector, focusing on the mediating role of trust to uncover the mechanisms through which transparency and accountability practices translate into meaningful stakeholder engagement. Drawing on Stakeholder Theory, Agency Theory, and Stewardship Theory, the study develops hypotheses to examine these relationships. A quantitative cross-sectional approach is adopted, utilising an online survey to collect primary data from 200 Malaysian employees. Data analysis employs SPSS Version 29.0 and SmartPLS 4.0 software. Results reveal a significant positive impact of transparency, accountability, and trust on stakeholder engagement, with trust mediating these relationships. For theoretical implications, it contributes to stakeholder theory, organisational behaviour, and corporate governance literature. Practically, the findings offer actionable insights for Malaysian companies seeking to enhance their governance practices and stakeholder relationships. Practical recommendations include adherence to disclosure policies, promoting board diversity, and establishing robust codes of conduct outlined in the Malaysian Code on Corporate Governance (MCCG). In conclusion, this research underscores the critical importance of transparency, accountability, and trust in fostering meaningful stakeholder engagement within Malaysian organisations. It catalyses future research, promoting ongoing exploration and innovation in corporate governance and stakeholder management.