Evaluating Corporate Social Responsibility Disclosure in Saudi Arabia: Evidence from Petrochemical Sector Companies

Abstract

The objective of this research is to explore the extent and volume of corporate social responsibility disclosure (CSRD) activities within Saudi petrochemical listed businesses in 2019, as well as to evaluate the level of disclosure before and after the acknowledgment of Saudi Vision 2030. The research has investigated stakeholders’ perspectives in terms of CSRD practices and the consequences of releasing such information. The findings have been interpreted based on stakeholder theory. Additionally, a content analysis approach has been applied as the main method to examine annual reports of the sample. It has been observed that the entire sample discloses certain information related to CSRD. However, the level of disclosure varies. Among the main disclosure categories (environmental, employees, society, and customers), both the employees and environmental categories are ranked as having the highest levels of disclosure, while information related to the customers category is the least disclosed among all the categories. Furthermore, the research has found development in CSRD practices by 2019 among Saudi petrochemical listed companies compared to social and environmental disclosure in 2014. The research delivers a broader understanding of challenges facing CSR and makes a number of observations that can enhance regulation formulation when Saudi policymakers develop national CSR standards