Social and Environmental Disclosure Rating in the Libyan Oil and Gas Sector

Abstract

Abstract-Over the last two decades, as companies have become more responsive to investors' concerns about the environment and corporate social responsibility (CSR), they have started to provide information about the environmental and social impacts of their activities in their annual reports. The purpose of this study is to explore the practices of environmental disclosure (ED) and the extent of response of companies in Libya's oil industry to these concerns. In addition, the study aims to identify what motivates companies to disclose social and environmental information. To fulfil these aims, data was collected by means of interviews with managers and accountants from oil and gas companies operating in Libya. The findings reveal that the managers and accountants of local and foreign oil and gas companies operating in Libya are aware of and understand the significance of CSR and ED. The study found that the majority of these companies disclose some environmental information in their annual reports or at least have policies to disclose this information in the near future. They disclose three types of environmental information: good, neutral and bad news. The interviewees emphasised the benefits companies gain from corporate disclosure, such as improving the company's reputation, meeting environmental regulations and satisfying organisations interested in environmental performance. Some also suggested that companies disclose environmental information for economic reasons. On the other hand, the investigation highlighted that the most important obstacle to ED is the lack of environmental regulations and ED standards; in other words, there is no legal obligation for companies to disclose environmental information.

Insights into corporate social responsibility disclosure among multinational corporations during host‐country political transformations: Evidence from the Libyan oil industry

“…Many MNCs' businesses in Libya were nationalised after 1969 due to political and economic patterns derived from the socialist ideology prevalent at that time (Elmogla, 2009). Since 2005, the Libyan oil sector has engaged in numerous international affiliations, which, along with regulations, have significantly impacted CSRD activities (Al‐drugi, 2013, p. 228) and CSR practices (El Kailani & Saleh, 2012) in the Libyan context. Generally, CSR‐related affiliations with MNCs can positively influence CSR awareness and education in HSCs (Bagire et al, 2011; Gulbrandsen & Moe, 2005).…”