Accounting and Stakeholder Engagement through Non-Financial Reporting Practices: Public Value in the Italian Waste Sector

This study investigates how public value is co-created in the Italian waste management sector through stakeholder engagement and the quality of non-financial reporting (NFR). Grounded in stakeholder theory and public service logic, the research conceptualizes public value as the outcome of dynamic relational processes, wherein stakeholder salience mediates the translation of external pressures into organizational priorities. A structural model is developed and empirically tested using Partial Least Squares Structural Equation Modeling (PLS-SEM) on a sample of 164 Italian waste management firms that disclose non-financial information. The analysis reveals that stakeholder pressures—particularly from customers, shareholders, and public authorities—significantly drive the quality and inclusiveness of NFR. In turn, high-quality NFR enhances stakeholder salience by institutionalizing claims within reporting and governance practices, ultimately enabling more responsive and accountable public service delivery. Public value is operationalized through a hybrid set of indicators, combining financial performance (ROI, ROE) with socio-environmental outcomes (recycling rates, cleanliness). The findings underscore the importance of participatory, materiality-informed reporting as a strategic governance mechanism that supports dialogic accountability and sustainable value creation. Policy implications highlight the need for stakeholder-centric disclosure standards and mechanisms to prevent symbolic compliance. This research contributes to ongoing debates on public value governance and demonstrates how accounting practices can serve as critical levers for social and environmental responsiveness in complex service ecosystems.