Stakeholder engagement (SE) plays a pivotal role in creating public value, particularly for public utilities providing essential services such as energy, water supply, and waste management. By understanding and addressing stakeholder needs and expectations, SE fosters long-term value through stronger relationships and a competitive advantage. Companies increasingly recognize SE disclosures as fundamental components of ESG reports, reflecting their commitment to meeting societal expectations and enhancing legitimacy. This study investigates how public utilities engage with stakeholders, emphasizing the quality of communication and the breadth of stakeholder involvement. Employing qualitative content analysis, the research examines ESG reports from 15 Italian-listed public utilities, collected from the Borsa Italiana website in September 2022. Two key dimensions of SE are explored: stakeholder engagement extension, indicating the number of stakeholder groups involved, and communication quality, which is assessed through three levels—information, response, and involvement strategies. Results reveal that while larger companies tend to exhibit higher communication quality, smaller companies often achieve superior communication practices at equivalent engagement extension levels. Notably, there is no significant correlation between company size and the extent of stakeholder engagement. Community groups are the most frequently involved stakeholders, followed by employees, customers, and investors, while government bodies and suppliers are less frequently engaged. Despite their strategic and social relevance, most public utilities demonstrate limited two-way communication and fail to fully leverage their potential as dialogic actors. The study identifies challenges such as disclosure inaccuracies, limited multi-stakeholder collaboration, and a reliance on one-way online communication. To improve SE quality, public utilities should embrace collaborative and cooperative approaches while leveraging innovative digital engagement and training initiatives. Policymakers are encouraged to establish clearer SE guidelines to standardize reporting and enhance stakeholder comparability within the utility sector.
