Corporate Social Responsibility Disclosure: Evidence from Libyan Managers

Abstract

This paper explains the importance and benefits for Libyan companies of engaging in corporate social responsibility disclosure (CSRD). Libya, as a developing country, was chosen by the researchers as it has undergone many changes over a short period of time in terms of economic, environmental and social changes. Both quantitative and qualitative methods were used to collect data relating to CSRD in Libyan companies. Perceptions of financial managers interviewed as part of the study reveal that CSRD is important for company performance. The paper reveals that CSRD in the annual reports is very important in terms of attaining company objectives to: satisfy the interests of stakeholders; protect employees’ interests; clarify the extent of contribution of the company in both CSR activities and CSRD; and assisting investors to make appropriate investment decisions. The perceived primary benefits of CSRD were enhanced company reputation, and increased financial performance. It also improves ability to attract foreign investors, and results in higher consumer satisfaction leading to commercial benefits. Secondary benefits include demonstration of compliance with the law and improved employee commitment.

Keywords: Corporate Social Responsibility (CSR), Corporate Social Responsibility Disclosure (CSRD), Financial Performance, Corporate Reputation

JEL Classification: M14, M41, L11, K21