The Impact of Climate Change Disclosure on Social Responsibility: An Applied Study on a Sample of Middle East and North Africa Countries
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Abstract
The present paper aims to measure and analyze the impact of climate change disclosure on social responsibility, applied to a sample of (53) banks drawn from the study population represented by the banking sector in several financial markets within Middle Eastern and North African countries, totaling 7 markets (Saudi Stock Market, Dubai Financial Market, Abu Dhabi Securities Exchange, Qatari Market, Jordanian Market, Egyptian Market, Casablanca Stock Exchange). The sample was selected based on the availability of complete data for the period extending from (2022) to (2023). To collect primary data to measure the research variables, informational content analysis was adopted based on the financial reports published by the banks in the study sample to measure both climate change disclosure and social responsibility. The data of the present study variables were measured for each observation (bank/year), and both the statistical program (SPSS Ver.24) and the program (AMOS Ver.21) for conducting statistical analysis through testing the hypotheses of availability, relationship hypotheses, and effect hypotheses of the study variables and dimensions. This paper concludes that there is a significant positive relationship between climate change disclosure and social responsibility, which means that an increase in the level of climate change disclosure is accompanied by an increase in the level of social responsibility in the banks included in the study sample. There is also variation in the impact of the dimensions of climate change disclosure, as the dimensions of strategic disclosure and climate risk management have the greatest impact on social responsibility, while the dimensions of governance and metrics showed a limited impact. The paper also recommends increasing the level of climate change disclosure by companies within their annual or sustainability reports, due to the positive and significant relationship with social responsibility, which reflects the company’s commitment to society and the environment and enhances its image in front of investors and stakeholders, and that companies should integrate climate change disclosure within the frameworks of social responsibility as it is considered one of the important dimensions in the performance of sustainable companies.
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