Perpustakaan Digital ITB

Purpose: Corporate Water Disclosure (CWD) practices are crucial for maintaining water resource availability and quality, yet they remain underexplored in business literature despite their ethical importance. Notwithstanding the increasing stakeholder demands for better water management, transparency, and risk addressing, businesses continue to struggle with effective CWD. Based on the integration of stakeholder theory and agency theory, this study aims to better comprehend the relationships between stakeholder pressures, stakeholder engagement, board monitoring effectiveness, and CWD practices. Design/Methodology/Approach: Using purposive sampling, content analysis was performed to collect data from the 200 largest non-financial Malaysia public listed companies based on market capitalisation, and the data were analysed using Partial Least Squares path modelling. Findings: Government pressure, environmental protection organisations' pressure, and employee pressures directly influence CWD. Additionally, stakeholder engagement positively impacts CWD and mediates the positive relationships between government pressure, environmental protection organisations' pressure, and CWD. Furthermore, the effectiveness of board monitoring strengthens the relationship between stakeholder engagement and CWD. Research Implications/Limitations: This study highlights the importance of both stakeholder pressures and internal governance mechanisms in enhancing transparency and accountability in corporate water management practices. Practical Implications: Businesses can improve CWD by enhancing board monitoring mechanisms. This boosts transparency, aligns with stakeholder expectations, mitigates waterrelated risks, and strengthens the company’s reputation and financial stability amidst growing pressures. Originality/Value: By examining the moderating effect of board monitoring on the relationship between stakeholder engagement and CWD, the study sheds light on the internal governance mechanisms that influence transparency in water management. This focus on board dynamics and their impact on CWD is relatively unexplored in the extant literature