Social and environmental reporting, sustainable development and institutional voids: Evidence from a developing country

This study adopts the concept of institutional voids to examine the perceptions of managers and policymakers in developing markets with respect to the actual barriers that hinder social and environmental reporting (SER) towards sustainable development. The study uses in-depth semi-structured interviews with managers and decision-makers and policymakers of the main oil and gas companies in weak institutional settings (Libya). The findings suggest that the absence of environment general authority's role, the absence of a clear legal requirement that refers to SER, the shortage of knowledge and awareness, the lack of motivation from the government, fear of change, and the absence of civil society organisations are perceived as the major barriers that hinder the development of SER. These findings contribute to the literature on institutional voids and sustainable development by providing evidence on SER barriers in the context of a developing country. Therefore, it could be useful to corporate regulators and policymakers to mitigate institutional voids to develop a more focussed SER agenda, when considering regulations for the disclosure and sustainable development.

Automated summary

This study examines the barriers hindering social and environmental reporting (SER) towards sustainable development in developing markets, particularly in weak institutional settings like Libya. Findings suggest that the absence of environmental authority, unclear legal requirements, lack of knowledge and motivation from the government are major obstacles. This research contributes to the understanding of SER barriers in developing countries and highlights the importance of addressing institutional voids for a focused SER agenda.