Corporate adoption of SDG reporting in a non-enabling institutional environment : Insights from Libyan oil industries

Ali Gerged; Tariq Al Montaser

doi:10.1016/j.resourpol.2021.102240

Corporate adoption of SDG reporting in a non-enabling institutional environment : Insights from Libyan oil industries

Ali Gerged, Tariq Al Montaser

FBL School of Economics, Finance and Accounting

De Montfort University

Research output: Contribution to journal › Article › peer-review

14 Citations (Scopus)

47 Downloads (Pure)

Abstract

Drawing on institutional voids, we examine how corporate engagement in sustainable development goals reporting (SDGR) is influenced by Libya’s non-enabling institutional environment post the political change in 2011. Specifically, we examine the impact of national-level SDG performance (NLSP) of 2015 to 2010, as a proxy for the non-enabling institutional environment, on SDGR observed in 2015/2016. This study also explores whether the NLSP-SDGR nexus is contingent on the environmental sensitivity of oil industries in Libya. We employ a quantitative content analysis based on word counts to determine the level of SDGR among a cross- sectional sample of 524 observations of the major Libyan oil companies in the 2015/2016 fiscal year. Using measures derived from the World Development Indicators (WDI), a cross-sectional regression analysis has been employed to investigate how NLSP explains variations in SDGR noted in 2015/2016. Descriptive evidence in- dicates that Libyan oil companies tend to report SDG information on their websites about Good Health and Well- being (SDG3), Quality Education (SDG4), Affordable and Clean Energy (SDG7), Decent Work and Economic Growth (SDG8), Industry, Innovation and Infrastructure (SDG9), Sustainable Cities and Communities (SDG11), and Responsible Consumption and Production (SDG12). Our regression results suggest that the NLSP positively and significantly influences corporate commitment to the SDGR agenda among a sample of the major oil com- panies in Libya. Additionally, the environmental sensitivity of oil industries appeared to be moderating the NLSP- SDGR nexus. As SDGR tends to be a self-regulation mechanism, our empirical evidence emphasises the impor- tance of establishing effective regulatory agencies to ensure companies’ achievements of their social, environ- mental, and economic responsibilities efficiently and effectively.

Original language	English
Article number	102240
Number of pages	11
Journal	Resources Policy
Volume	74
Early online date	20 Jul 2021
DOIs	https://doi.org/10.1016/j.resourpol.2021.102240
Publication status	Published - Dec 2021

Bibliographical note

© 2021, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/

Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.

This document is the author’s post-print version, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it.

Keywords

Environmental sensitivity
Institutional voids
Libya
National-level SDG Performance
Non-enabling institutional environment
Oil sector
Political change
SDG Reporting

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Cite this

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abstract = "Drawing on institutional voids, we examine how corporate engagement in sustainable development goals reporting (SDGR) is influenced by Libya{\textquoteright}s non-enabling institutional environment post the political change in 2011. Specifically, we examine the impact of national-level SDG performance (NLSP) of 2015 to 2010, as a proxy for the non-enabling institutional environment, on SDGR observed in 2015/2016. This study also explores whether the NLSP-SDGR nexus is contingent on the environmental sensitivity of oil industries in Libya. We employ a quantitative content analysis based on word counts to determine the level of SDGR among a cross- sectional sample of 524 observations of the major Libyan oil companies in the 2015/2016 fiscal year. Using measures derived from the World Development Indicators (WDI), a cross-sectional regression analysis has been employed to investigate how NLSP explains variations in SDGR noted in 2015/2016. Descriptive evidence in- dicates that Libyan oil companies tend to report SDG information on their websites about Good Health and Well- being (SDG3), Quality Education (SDG4), Affordable and Clean Energy (SDG7), Decent Work and Economic Growth (SDG8), Industry, Innovation and Infrastructure (SDG9), Sustainable Cities and Communities (SDG11), and Responsible Consumption and Production (SDG12). Our regression results suggest that the NLSP positively and significantly influences corporate commitment to the SDGR agenda among a sample of the major oil com- panies in Libya. Additionally, the environmental sensitivity of oil industries appeared to be moderating the NLSP- SDGR nexus. As SDGR tends to be a self-regulation mechanism, our empirical evidence emphasises the impor- tance of establishing effective regulatory agencies to ensure companies{\textquoteright} achievements of their social, environ- mental, and economic responsibilities efficiently and effectively.",

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AB - Drawing on institutional voids, we examine how corporate engagement in sustainable development goals reporting (SDGR) is influenced by Libya’s non-enabling institutional environment post the political change in 2011. Specifically, we examine the impact of national-level SDG performance (NLSP) of 2015 to 2010, as a proxy for the non-enabling institutional environment, on SDGR observed in 2015/2016. This study also explores whether the NLSP-SDGR nexus is contingent on the environmental sensitivity of oil industries in Libya. We employ a quantitative content analysis based on word counts to determine the level of SDGR among a cross- sectional sample of 524 observations of the major Libyan oil companies in the 2015/2016 fiscal year. Using measures derived from the World Development Indicators (WDI), a cross-sectional regression analysis has been employed to investigate how NLSP explains variations in SDGR noted in 2015/2016. Descriptive evidence in- dicates that Libyan oil companies tend to report SDG information on their websites about Good Health and Well- being (SDG3), Quality Education (SDG4), Affordable and Clean Energy (SDG7), Decent Work and Economic Growth (SDG8), Industry, Innovation and Infrastructure (SDG9), Sustainable Cities and Communities (SDG11), and Responsible Consumption and Production (SDG12). Our regression results suggest that the NLSP positively and significantly influences corporate commitment to the SDGR agenda among a sample of the major oil com- panies in Libya. Additionally, the environmental sensitivity of oil industries appeared to be moderating the NLSP- SDGR nexus. As SDGR tends to be a self-regulation mechanism, our empirical evidence emphasises the impor- tance of establishing effective regulatory agencies to ensure companies’ achievements of their social, environ- mental, and economic responsibilities efficiently and effectively.

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Corporate adoption of SDG reporting in a non-enabling institutional environment : Insights from Libyan oil industries

Abstract

Bibliographical note

Keywords

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