Which principle emphasizes stakeholder engagement in sustainability accounting?

The principle of inclusivity is central to the concept of sustainability accounting as it highlights the importance of engaging with various stakeholders who are impacted by or can impact an organization's operations and sustainability efforts. Inclusivity ensures that the perspectives, interests, and needs of diverse groups—including employees, customers, suppliers, communities, and investors—are considered in the decision-making process and reporting activities.

This engagement fosters a more comprehensive understanding of sustainability issues, allows for more equitable outcomes, and helps build trust with stakeholders. By incorporating stakeholder feedback, organizations can create more relevant and effective sustainability strategies, improve their accountability, and enhance their overall ethical standing.

While accountability, transparency, and efficiency are important in the realm of sustainability accounting, they do not specifically focus on the engagement aspect that is central to the principle of inclusivity. Accountability relates more to being responsible for one's actions, transparency is about clear and open communication of information, and efficiency pertains to resource optimization—all of which can be supported by inclusivity but do not prioritize stakeholder engagement as their main focus. Hence, emphasizing inclusivity leads to more sustainable and socially responsible practices.