CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES AND SUSTAINABILITY IN SAUDI ARABIA

Abstract

This study examines the associations of corporate social and environmental responsibilities with corporate sustainability in Saudi Arabia for the period of 2007- 2011. A pooled OLS regression analysis is used to estimate the associations proposed in the hypothesis. The final sample consists of 164 listed companies in Tadawul. The study finds that corporate social and environmental responsibilities is negatively associated with corporate sustainability. The study suggests that regulators, especially Saudi stock exchange, should mandate companies to disclose all relevant information related to corporate social and environmental responsibilities in a transparent and timely manner in order to assess the degree of these responsibilities incurred. For companies, this study proposes that they should emphasize more on enhancing the role and the quality of their social and environmental responsibilities as this enhancement may positively influence their sustainability