Saudi Cultural Missions Theses & Dissertations
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Item Restricted The Role Of The Board Of Directors Of Shareholding Companies Listed On The Saudi Stock Exchange In Achieving The Saudi Vision 2030 Towards A Sustainable Economy: A Study In Saudi Regulations And Legal Reform Proposals(Southern Methodist University, 2025) Alshiddi, Norah; Dean Camp, Martin L; First, Primary Advisor; Norton, Joseph JThe Kingdom of Saudi Arabia (KSA) has adopted a modern vision of economic reform, Vision 2030, using KSA’s economic resources to create a more diversified and sustainable economy. The KSA has launched several programs to help achieve these goals, including the National Transformation Program (NTP), which enacted numerous legal reforms to empower the private sector to be consistent with current international standards. The KSA issued a new Companies Law, amended Implementing Regulation of the Companies Law for Listed Joint Stock Companies (IRCL), and amended the Corporate Governance Regulations (CGR) to meet international best practices in corporate governance in order to create a sustainable private sector able to contribute a solid financial market. Since joint-stock companies are the basis of the financial market, the Vision 2030 programs have addressed them with the intention of supporting their sustainability and social responsibility. A joint-stock company's board of directors (BoD) has broad authority to supervise and plan the company's affairs. Whenever the BoD is competent and enlightened, its decisions will advance the company's sustainability planning. Therefore, the main focus of this study will be to examine how well the new legal reforms meet international standards and how they affect the BoDs of shareholding companies listed on the Saudi Exchange in in terms of their ability to achieve corporate sustainability. More specifically, this analysis will address the impact of legal reforms on the following areas: formation of the board, board committees, fiduciary duties of the board, and the board's role in regulating the relationship with stakeholders and in corporate social responsibility (CSR). These are important categories of analysis, as they relate to the success of companies in implementing the corporate governance best practices that make corporate sustainability possible. This dissertation will highlight the importance of these aspects of corporate sustainability in relation to the best corporate governance practices, and it will analyze the adequacy of Saudi laws for achieving sustainability. The principles of sustainability are inherent in Vision 2030 and its executive programs. However, the corporate governance practices in Saudi Arabia do not promote the adoption of sustainability. Saudi legal rules still need to address many factors that significantly shape the composition of the BoD and the roles which enable the BoD to fulfill its obligations to promote sustainability for the company and to adhere to the principles of best corporate governance. Deficiencies persist in Saudi legislation regarding several crucial elements in the formation of the BoD and its committees, such as the diversity of members, the inclusion of women, the proportion of independent members, and the extent of relevance between the selection of members of the BoD and its committees and the achievement of the company's objectives. Additionally, the committees' objectives need to be enhanced to align with the company's sustainability. The BoD has significant roles that affect its ability to carry out corporate sustainability effectively. Fiduciary duties and their influence on the board's decision-making capabilities are of particular importance. Although the Companies Law emphasized the fiduciary duties of the BoD for the first time, the current formulation of fiduciary duties may restrict the BoD from pursuing sustainable value for the company. Understanding the primary value of fiduciary duty is critical to determine if the company is acting for the shareholders' benefit or the company's long-term viability. Furthermore, regulating relationships with stakeholders contributes to establishing good value for the corporation, thus maximizing the organization's value. Some international corporate governance practices obligate the BoD to regulate the relationship with stakeholders. In Saudi Arabia, although the CGR encourages such regulation, this encouragement is not mandatory, which affects some critical aspects of dialogue with stakeholders. Moreover, CSR plays a crucial role in shaping the company's strategy towards sustainability. The CGR states that CSR policy is instituted by the ordinary general assembly (OGA) in accordance with the BoD's recommendation. This text may hinder a BoD's ability to embrace CSR as a strategic decision to maximize the company's long-term value. Chapter One provides a general introduction. Chapter Two highlights the background of Saudi shareholding companies, Saudi corporate governance and its theories, as well as corporate sustainability. Chapter Three covers the composition of the BoD, the BoD’s independence and diversity, and women's participation in the BoD in Saudi Arabia. The chapter will examine practices in Saudi Arabia compared with international practices in order to highlight the relationship between the BoD’s composition and the attainment of corporate sustainability. Chapter Four discusses the formation of board committees and how they relate to sustainability. Analysis in this chapter will focus on committee formation in Saudi Arabia compared with international practices. Chapter Five highlights some of the most critical roles of the BoD regarding practical aspects key to the creation of long-term value for the company. Specifically, this chapter focuses on fiduciary duties and the BoD's roles towards stakeholder involvement, as well as the BoD's role in CSR, because these roles are considered practical measures of the company's progress toward sustainability. The chapter will present the concepts defining these roles, analyze the current work in Saudi Arabia per the Companies Law and CGR, compare this with corporate governance practices to evaluate the ability of these roles to fulfill sustainability, and suggest developing the necessary roles. Chapter Six will outline proposals for legal reform in the IRCL and the CGR in concert with the issues discussed in this study. This dissertation is one of the early studies of the key provisions related to the BoD in the Companies Law and the CGR from the perspective of corporate sustainability. This study aims to improve the BoD's performance by providing recommendations to reform the IRCL and the CGR in ways which will enhance the sustainability of the economy and fulfill the aspirations of the Saudi government expressed by Vision 2030.16 0Item Restricted The effect of HRM practices on the CSR integration into organisational culture: A study of the role of HR in developing a socially responsible culture .(Saudi Digital Library, 2023-09-28) Almatrafi, Ghadeer; Ali, BaharCorporate Social Responsibility (CSR) significance in an organisation has been rapidly growing for many years, acknowledging the imperative of addressing Environmental, Social, and Governance concerns in the strategies of business. CSR integration into organisational culture is necessary for sustainable competitive advantage, societal well-being, and stakeholder trust. Human Resource Management (HRM) practices wield a profound influence on the culture, and they can share the CSR principles integration. The empirical investigation on the interaction between CSR and HRM integration is scarce. The study filled the gap by exploring how HRM practices support and contribute to the integration of CSR into organisational culture. The study investigated HR's role in nurturing a socially responsible culture, uncovering key benefits and challenges, and underscoring the importance of aligning both HRM and CSR practices. The research also underscores the HR professional vital contributions and provides insights to foster a socially responsible culture that drives social impact and sustainability, enriching strategic, practical, and academic understandings in the process.35 0Item Open Access Corporate Social Responsibility under Saudi Arabia's Company Law: A Comparative Legal Study with Australia(Saudi Digital Library, 2023-03-31) Qawariri, Elham Mohammad M; Bauties, Lowell; Garcia, GabrielCorporate Social Responsibility (CSR) has assumed strategic significance globally for companies and governments alike. CSR and national development are closely connected. Corporations which are socially responsible promote sustainable development, meet societies’ environmental needs, motivate individual employees, create a wealth of goods, and stimulate economic progress. This research analyses Corporate Social Responsibility (CSR) under Saudi Corporations Law, using a comparative evaluation method focusing on Australia. In recent years, many companies have re-organised their strategies and standards in order to implement national regulations on CSR, with the aim of ensuring the success of their businesses, especially in terms of improving economic profits. CSR has been implemented in many countries, including Malaysia, China, India, Indonesia, and Australia. Corporations in Australia and other developed countries focus on CSR practice in different ways. However, in Saudi Arabia the implementation of CSR is still in its nascent stages. The methodology of this research will examine and evaluate how CSR has been implemented in Saudi Arabia, specifically with regard to its social, economic, environmental, and ethical contexts. This research addresses a gap in the legislation and academic scholarship. In Saudi Arabia, there are no existing legal and regulatory frameworks or reliable systematic studies which have effectively clarified how corporations can implement CSR in a socially responsible manner. This is the lacuna which this study aims to fill. Saudi Arabia intends to have a more diverse industrial base that buttresses the government’s Vision 2030 plan. This requires more effective private sector development to achieve specified economic goals, particularly for both financial and non-financial companies. The concept of CSR has emerged recently as a tool for corporations to improve their legitimacy in social and environmental terms. CSR can facilitate funding, expand investment, promote confidence in institutions and build community capacity. This research fills the gap in the academic studies done on CSR from the legal point of view, especially the responsibility of companies to document CSR in financial reports, financial statements, annual reports, etc. The challenges refer to understanding how internal and external regulations and corporate rules will affect the perceptions of CSR and obligations of reporting and disclosing CSR-related financial information and what business management is doing. The absence of knowledge about CSR has been observed for both government and corporations. More research is needed on the level of partnerships between both parties on devising a CSR framework. Corporations have been not conducting their CSR operations well, and this affecting their reputation and perceptions of their adherence to CSR for the greater good.33 0