Corporate Social Reporting in Libya: A Research Note

Purpose Not enough is known about social accounting disclosure practices in developing countries. This research note adds strength and depth to the few other studies that take Libya as a point of departure to understanding the dynamic between disclosure practices and the context in which they are performed. Design/methodology/approach A sample of 270 annual reports from 54 companies, both public and private across a range of sectors and covering a five year period (2001-2005) were analysed using content analysis to ascertain patterns and trends in corporate social reporting by Libyan companies. Findings Libyan companies generally disclose some information related to social responsibility but at a low level compared with developed countries and only in certain areas. This situation changed little over the five year period under scrutiny. Research limitations/implications During the five year period examined, CSR remained largely unresponsive to significant changes in the political scene that occurred over a much longer period of time. This suggests further research is needed to illuminate the role and influence of societal culture and to understand the impact of organisational subculture on disclosure and responsibility practices. Originality/value Libya provides a point of departure for further research into other transitioning or developing economies, particularly those in the Arab world. It also offers unique insights and the possibility for comparative studies between them due to its particular character. This note augments and adds depth to other studies in the area

Corporate social reporting in a transition economy: the case of Libya

The social and economic environments of developing countries differ from those of liberal market economies of the developed countries, and the differences are reflected in the accounting disclosure practices. Recent years have shown an increased attention paid by accounting research to Corporate Social Responsibility and Disclosure which is recognized as having the potential to enhance the transparency of business enterprises’ social influence, enabling the wider society to hold business enterprises more accountable for their operations. Corporate Social Responsibility and Disclosure practices in most developing countries remain fairly rudimentary and relatively few studies have focused on the corporate social responsibility disclosure practices in such countries. The aim of this study is to investigate corporate social responsibility disclosure in Libyan companies’ annual reporting in the light of the country’s economic, social and political environment. In particular, it seeks to map current corporate social disclosure in annual reports and to understand various parties’ views of that practice and its possible future development. To achieve the aim and particular objectives of the study it was necessary to utilise more than one research method. Firstly, a descriptive method is used to provide an overview of accounting and its environment in a developing country, and the economic, social and political environment in Libya. Secondly, empirical evidence covering a five year period across a sample of private and public companies in Libyan environment is presented using content analysis to analyse the companies’ annual reports. Finally, an empirical survey by personally delivered and collected questionnaire of 303 participants in four groups of research participants (academic accountants, financial managers, government officials and investors) was performed to explore the views and perceptions regarding corporate social reporting in Libya. The content analysis showed that Libyan companies generally disclose some information related to social responsibility. However, the amount of information is low compared with counterparts in developed countries. Employee and community involvement are the themes that the companies disclose most information about. The findings from the questionnaire survey indicate that participants preferred social information to be disclosed in the annual report, ideally placed in a separate section. The disclosure of more social and environmental information was widely accepted and viewed as leading to some socioeconomic benefits at the macro level

Corporate social reporting in a transition economy: the case of Libya

Research that considers corporate social reporting (CSR) in emerging economies is still limited and Libya remains a rich point of departure for studies of other transitioning or developing economies, particularly those in the Arab world. This paper therefore aims to investigate whether and, if so, how changes are reflected in social accounting disclosure practices. A sample of 270 annual reports from 54 companies, both public and private across a range of sectors and covering a five year period, were analysed using content analysis to ascertain the state of, and trends in, corporate social reporting by Libyan companies. Additionally a survey questionnaire was administered to financial managers to explore their views and perceptions, as producers of financial reports, on the current state of corporate reporting in general and social reporting in particular, to gain some insight into their motivations and to elicit their opinions on the future of CSR. These two methods were together utilized to develop a fuller and richer picture of corporate social disclosure in Libya. During the five year period examined, CSR remained largely unresponsive to significant changes in the political scene with disclosure at a low level compared with developed countries and only in certain areas. As well as providing insights into CSR in a transition economy, this suggests further research is needed to illuminate the role and influence of societal culture and to understand the impact of organisational and professional or quasi-professional subculture on disclosure and responsibility practices