The Role of Organizational Dimension of Governance in Enhancing Responsibility, Transparency and Fairness of Financial Reports and Enhancing Sustainable Development of Small Enterprises in the Kingdom of Saudi Arabia

Abstract

The study investigated the role of organizational dimension of governance in enhancing responsibility, transparency and fairness of financial reports and enhancing sustainable development of small enterprises in the Kingdom of Saudi Arabia. The study problem was represented in that small enterprises suffer from weakness in using governance mechanisms that enhance responsibility, transparency, fairness and disclosure of financial reports. The study significance rises from the importance of sustainable development which is considered one of the most important management issues that should be enhanced. The social performance and environmental performance are considered main factors of institutions success. The study aimed to identify the relationship between the organizational dimension of governance and the enhancement of responsibility and transparency of financial reports and between the organizational dimension of governance and the achievement of sustainable development in small enterprises in the Kingdom of Saudi Arabia. The researcher adopted the regression analysis to investigate the relationship between the study variables and verified the hypotheses. The researcher concluded the following: There is a direct relationship between the organizational dimension of governance and the enhancement of responsibility and transparency of reports and between the organizational dimension of governance and the achievement of sustainable development in small enterprises in the Kingdom of Saudi Arabia. The researcher recommends the following: Attention should be given to transparency and disclosure in financial reports and statements in order to achieve quality of sustainable performance and economic development in Saudi small enterprises. Attention should also be given to applying governance mechanisms and to quality of accounting information and managing risks faced by enterprises in order to achieve sustainable performance and economic development.