Stakeholder engagement in the public utility sector: Evidence from Italian ESG reports

Stakeholder engagement (SE) processes enhance public value, and information on how companies develop these processes helps stakeholders to assess firms' legitimacy and competitiveness, particularly in the public utility sector, where value creation is related to public trust. Nevertheless, empirical evidence regarding SE quality is scarce. This paper fills the gap by adopting a methodological tool that assesses the typology and extension of engagement processes. A content analysis of Italian public utilities' ESG reports reveals limited engagement with diverse stakeholders and a lack of two-way communication. The paper provides practical suggestions to improve SE to address sustainability issues affecting public value.