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Corporate Governance Reforms in Saudi Arabia: SABIC’s Approach

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LEARNING OBJECTIVES

  1. Understand the importance of corporate governance reforms in Saudi Arabia and their impact on the business environment.
  2. Analyze the key elements of SABIC’s corporate governance framework and how they contribute to the company’s success.
  3. Evaluate the challenges and opportunities associated with implementing corporate governance reforms in a complex regulatory environment.
  4. Explore the role of sustainability in corporate governance and how SABIC integrates ESG considerations into its governance practices.
  5. Discuss the broader implications of corporate governance reforms for Saudi Arabia’s Vision 2030 and the development of the Kingdom’s corporate sector.

 

ADDITIONAL REFERENCES/READINGS BY THE AUTHOR

Description

UN SDGs:

SDG 8: Decent Work and Economic Growth

SDG 12: Responsible Consumption and Production

SDG 16: Peace, Justice, and Strong Institutions

INTRODUCTION

Saudi Arabia has been undergoing significant economic and social transformations as part of its Vision 2030 initiative, which aims to diversify the economy, reduce dependency on oil, and enhance the overall business environment. A key aspect of these reforms has been the emphasis on corporate governance to improve transparency, accountability, and sustainability within the Kingdom’s corporate sector. Saudi Basic Industries Corporation (SABIC), one of the world’s largest petrochemical manufacturers and a flagship company in Saudi Arabia, has been at the forefront of implementing corporate governance reforms. This case study examines SABIC’s approach to corporate governance, the challenges and opportunities it has encountered, and the broader implications for the Saudi business environment.