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Environmental, Social and Governance (ESG) Disclosure and the Small and Medium Enterprises (SMEs) Sustainability Performance

Author

Listed:
  • Hebah Shalhoob

    (Department of Business Administration, The Applied College, King Abdulaziz University, Jeddah 21589, Saudi Arabia)

  • Khaled Hussainey

    (Faculty of Business and Law, The University of Portsmouth, Portsmouth PO1 3DE, UK)

Abstract

This paper aims to evaluate the impact of environmental, social and governance (ESG) disclosure practices on the sustainability performance of small and medium enterprises (SMEs) in Saudi Arabia. It adopts qualitative research methods to answer the research questions through interviews, using a sample of 30 interviewees, to direct and moderate the relationship between SMEs’ sustainability performance and their disclosure of ESG practices. The results indicated that SMEs in Saudi Arabia lack awareness of ESG practices and disclosures and, therefore, the extent of their importance to sustainability performance. The findings of this research have several practical implications for different stakeholders, internally and externally, such as managers, consultants, investors, credit agencies, lenders, policymakers, government, and the overall community in the context of the potential effects of ESG disclosure practices on SMEs.

Suggested Citation

  • Hebah Shalhoob & Khaled Hussainey, 2022. "Environmental, Social and Governance (ESG) Disclosure and the Small and Medium Enterprises (SMEs) Sustainability Performance," Sustainability, MDPI, vol. 15(1), pages 1-18, December.
    • Handle: RePEc:gam:jsusta:v:15:y:2022:i:1:p:200-:d:1012181
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