Implementation of Corporate Governance Practices and Corporate Accountability in Saudi Arabia and International Standards: A Comparative Study

Abstract

Although no unified principle provides corporate accountability elements, accountability is the quintessence of most Corporate Governance (CG) debates. The central discussion, primarily in the wake of the financial crisis, is whether boards are sufficiently accountable. As a result, the study will examine the modern CG approach and how it would establish accountability in the Kingdom of Saudi Arabia (Saudi). It will compare Saudi's system with CG approaches implemented in the United Kingdom. This thesis will also explore the extent and strategies of implementing the modern generation of CG regulations and various challenges existing in Saudi. It will examine how most Saudi companies comply with modern CG regulations and rationale for non-compliance, if any, to determine any relevant deficit in the country's code with respect to international best practices. In other words, the central objective of this study is to find out whether the Saudi CG framework and principles are in line with the international standards. These include popular worldwide CG principles, such as the Organisation for Economic Co-operation and Development (OECD), the UK Companies Act, and the UK Corporate Governance Code. The rationale for selecting the UK as a benchmark for this comparison was motivated by the country's enormous reputation in upholding a high level of corporate governance standards