Unveiling the Significance: Sustainability and Environmental Disclosure in Saudi Arabia through Stakeholders’ Theory

Abstract

Our study investigates sustainability and environmental disclosure in Saudi Arabian accounting, focusing on stakeholder accountability. Employing content analysis and close reading, we examine disclosures in the annual reports of 18 companies from 2008 to 2018. Findings reveal limited disclosures, influenced by interpretations of Islam and government emphasis. Despite sector-specific attention to environmental issues, disclosures lack depth. The study offers insights into managerial motivations, highlighting divergent stakeholder priorities and moral obligations. Policy implications suggest mandatory regulations could enhance accountability and encourage comprehensive disclosures. The research underscores the significance of contextual understanding in shaping accounting practices, particularly in regions like Saudi Arabia. Regulatory changes could improve corporate reporting on environmental and sustainability matters, addressing societal needs more effectively.