This study investigates the extent of utilization of social media for stakeholder engagement. It aims to uncover to what extent the use of social media for stakeholder engagement reflects a form of “organized hypocrisy”.
A netnographic approach is used to analyse 30 high ESG score companies across the three most active social media user countries in Southeast Asia. A content analysis is then applied to the companies' sustainability report narratives, comparing them with the firms' social media activities.
There is a significant disconnect between the company's claim of stakeholder engagement and the evidence of their social media interactions, revealing a lack of substantial stakeholder engagement. This pattern reflects “hypocrisy” in stakeholder communication. Divergent stakeholder demands are observable in digital interaction spaces, but their presence does not consistently explain firm's non-engagement. Some institutional enablers of ambiguity across the sustainability reporting framework and emerging economy context shape how digital stakeholder engagement is enacted.
Firms seeking to build authentic digital stakeholder engagement should be cautious in equating social media presence with meaningful engagement practices. Policymakers and standard setters should clarify what constitutes meaningful engagement in digital contexts to reduce symbolic compliance.
This study extends Brunsson's (1989) concept of “organized hypocrisy” to digital stakeholder engagement and clarifies the boundary of its applicability in an emerging economy context.
