SUSTAINABILITY ASSURANCE AND STAKEHOLDER TRUST: A NEW PARADIGM IN CORPORATE REPORTING

Abstract

The growing use of Environmental, Social, and Governance (ESG) reporting has increased the need for credible,
comparable, and decision-useful sustainability information. This study examines how sustainability assurance can
strengthen stakeholder trust and improve the quality of corporate reporting. A qualitative literature review was
conducted using peer-reviewed articles, institutional publications, and international reporting and assurance standards.
The review focuses on evidence concerning assurance quality, information credibility, stakeholder perceptions,
independence, standardization, and implementation barriers. The findings indicate that independent assurance can
reduce information asymmetry by increasing the perceived reliability, completeness, and consistency of sustainability
disclosures. Assurance is particularly valuable when stakeholders face difficulties in evaluating non-financial
information and when organizations operate across increasingly complex sustainability-reporting frameworks. The
analysis also shows that assurance does not automatically create trust: its effectiveness depends on practitioner
independence, appropriate assurance scope and level, transparent assurance statements, robust internal controls, and
the use of recognized standards. The emergence of ISSA 5000 and the continuing development of GRI and ISSB reporting
frameworks further highlight the need to align reporting and assurance practices. In emerging markets such as
Indonesia, cost, expertise, regulatory consistency, and organizational readiness remain important constraints. The study
proposes that sustainability assurance should be viewed not merely as a compliance activity but as a governance
mechanism that connects reporting quality, stakeholder confidence, and corporate accountability.