The Use of Management Accounting Information in Non-financial Reporting and Interaction with Stakeholders of Public Companies

Abstract

Sustainability report informs of social, economic, and environmental aspects of a public company. Non-financial report is used as a management accounting tool of rational and prudent corporate strategy. This type of reporting helps businesses to establish effective engagement with stakeholders. Stakeholders are crucial to success of every project. The purpose of the study is to define factors gathered from management accounting information that may affect quality of stakeholder engagement. The article is devoted to several practical aspects of non-financial reporting in public companies. The authors analyze factors affecting quality of stakeholders’ engagement and feedback on standards-based GRI; reveal the impact of the company’s most important components of sustainable development; and identify internal and external benefits from sustainability report. It is true that non-financial report provides a better understanding of risks and opportunities for both management and stockholders, reducing costs, increasing efficiency, and improving reputation and brand loyalty. That also comes from the latest instructions sent to Russian Parliament by the President to prepare regimentation of non-financial information disclosure for large companies by the end of April 2017. The study results prove that sustainability report allows management to create feedback, improve company’s reputation, and increase ratings. However, there are some problems to be solved.