Saudi Arabia Regulation for Corporate Governance (SRCG) (2017) and its Role to Combat Corruption: Failure, Successes

Abstract

Saudi Arabia has amended the SRCG 2017 to promote accountability and transparency in financial sector. The SRCG 2017 was amended with respect to CMA and it governs any corporation listed in the Saudi Arabia Exchange. The corporate governance ensures that business goals are developed well and achieved for better performance results. SRCG 2017 has a significant role in combating corruption. The corporate governance ensures that the board of directors takes the necessary steps in preventing corruption, especially in the joint stock firms. The board members and auditors collaborate in combatting corruption based on some of their assigned supervisory duties between the board of directors and the auditor. However, the SRCG 2017 has pending concerns that have resulted in some failures. This research indicates that long tenure of directors, non-involvement of some family members, and lack of women representation in the executive management positions are some failures of SRCG. In conclusion, addressing the failures is necessary to achieve the expected goals in the future. This may help compare the effectiveness of SRCG 2017 and the previous corporate governance.