The determinants of sustainability reporting: evidence from Saudi petrochemical companies

Abstract

Purpose

This study aims to investigate the determinants of sustainability reporting in the Kingdom of Saudi Arabia (KSA).

Design/methodology/approach

Twenty unstructured interviews were conducted to understand thoroughly the determinants and motivations of sustainability reporting among Saudi petrochemical shareholding companies.

Findings

This study finds that cultural aspects, compliance with international best practice, competitiveness, reputation and legitimacy are common motivations for sustainability reporting in KSA.

Research limitations/implications

This study has significant implications for industry, especially petrochemical and other highly polluting industries, and for policymakers. There are economic benefits to industry in adopting sustainability reporting, including transparency; and it is suggested that policymakers encourage industries to give more attention to sustainability reporting.

Originality/value

This study provides an original contribution to the extant literature on sustainability reporting, and incrementally adds to knowledge on sustainability reporting in KSA, Gulf cooperation council and Middle East North Africa region countries.

Citation

Alshhadat, M.Q. (2023), "The determinants of sustainability reporting: evidence from Saudi petrochemical companies", Journal of Financial Reporting and Accounting, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFRA-04-2023-0216