Jiří Strouhal

Department of Finance and Accounting, Škoda Auto University, Czechia;

Department of Business Administration, TalTech School of Business and Governance, Estonia

jiri.strouhal@savs.cz; jiri.strouhal@taltech.ee 

ORCID 0000-0001-9109-7087

Stakeholders’ perceptions on ESG reporting: On the case of Czechia and Estonia

Josef Horák

Department of Finance and Accounting, Škoda Auto University, Czechia

josef.horak@savs.cz

ORCID 0000-0002-6672-850X

Anett Resik

TalTech School of Business and Governance, Estonia

anett.resik@taltech.ee

Natalie Aleksandra Gurvitš-Suits

Department of Business Administration, TalTech School of Business and Governance, Estonia

natalja.gurvits@taltech.ee 

ORCID 0000-0003-1848-7171

Tarmo Kadak

Department of Business Administration, TalTech School of Business and Governance, Estonia

tarmo.kadak@taltech.ee 

ORCID 0000-0002-0923-3332

Abstract. The increasing commitment to sustainable development in European Union has led to the evolution of Environmental, Social, and Governance (ESG) reporting from voluntary disclosures to a regulated framework. This study explores stakeholder perceptions of ESG reporting in Czechia and Estonia, two EU member states with differing corporate governance traditions, to identify key drivers, challenges, and the alignment of ESG disclosure with stakeholder expectations in transitional economies. A qualitative methodology was employed, utilizing in-depth, semi-structured interviews with 24 stakeholders, including 20 company representatives and 4 auditors, in Czechia and Estonia. The interviews covered the understanding and implementation of ESG, perceived barriers, support mechanisms, and associated costs. Findings indicate mixed perceptions: larger, internationally tied companies view ESG strategically, while SMEs often see it as a costly burden. A significant “preparedness gap” exists between large firms and SMEs. Key challenges include financial costs, regulatory complexity (CSRD, double materiality), data management difficulties, and resource constraints, exacerbated by regulatory uncertainty. Effective ESG transition in Czechia and Estonia requires coordinated efforts, including government support for SMEs, clear regulatory guidance, industry knowledge-sharing, and responsible financial sector engagement to navigate complexities and realize potential benefits.

Received: March, 2024

1st Revision: April, 2025

Accepted: June, 2025

DOI: 10.14254/2071-8330.2025/18-2/4

JEL Classification: M41, M14, Q56, L21

Keywords: Czechia, environment, ESG reporting, Estonia, governance, stakeholders, social issues, standardization