Background In Libya Efforts To

In Libya, attempts to discourse the impact of economic activities on the environment by the comptrollers are non plenty, despite the being of a big sector of environmentally sensitive industries. Environmentally-sensitive industries in Libya, such as oil and gas, crude oil refinement, chemical and petrochemicals, power, and Fe and steel threatens to the environment such as pollution. So, this menace on environment has raised the inquiry of the environmental duty and answerability for all companies which runing in Libya.

Oil sector is one the most of import sectors in Libya, where many of Libyan and transnational companies works in this sector. Despite the importance of the Libyan oil sector to the Libyan economic system, It is non known if Libyan or multi-national companies engaged in oil sector have developed environmental accounting and revelation patterns or have future programs to describe on affairs such as environmental direction or environmental liabilities and investing in the control of pollution and disposal of waste and toxic substances ( Pratten and Mashat 2009 ) . Besides, the turning demand from stockholders, possible investors, creditors, consumers, regulators and environmental bureaus for environmental information has increased the answerability and Responsibility to these companies.

Furthermore, 20 or even 10 old ages ago, the being of a relationship between organisations and environing environment was far from obvious to many, and it may non be obvious to everyone even now. As a effect of globalisation, understanding accounting ‘s impact on a concern ‘ environment and transnational corporations has attracted considerable research involvement ( Douglas et al. 2007 ) . Besides last two decennaries have been a period of enormous convulsion and alteration in the concern environment. Competition in many industries has become worldwide in range, and the gait of invention in merchandises and services has accelerated. Furthermore, in the past two decennaries at that place have been considerable concerns about influence of industry on many facets of an organisation. These concerns are typically because of alterations in the concern environmental and the assortment of multi-national companies and their workplaces ( Erez, 1994 as cited in Aycan 2000 ; Miroshnik 2002 ) .

Recently research workers and directors have acknowledged that national differences are merely important with abroad clients but non with people within the same concern ( Miroshnik 2002 ) . Acknowledging influence differences of revelation is appropriate for pull offing international corporations and ignoring differences is unproductive and short-sighted taking to marginalising Incidents in transnational corporations ( Miroshnik 2002 ; Radebaugh et Al. 1997 ) . Voluntary revelation procedures are one of the of import facets that transnational corporations need to pay attending to because these appear to be critical for organisations ‘ successes. This is particularly so for those whose workplaces are in oil sector planetary. For illustration Ueno and Sekaran ( 1992 ) found that USA companies working in Japan and Nipponese companies working in USA have tried to do more revelation about environmental information in one-year study with the ways diverseness of each location and pattern.

Multinational companies face many jobs when revelation about environmental information in dissimilar states because of the fluctuation in the economic conditions, authorities ordinances so they must be cognizant if the direction patterns they are utilizing in one criterion must be modified for usage in other state ( Furnham and Gunter 1993 ; Garrison et Al. 2006 ; Merchant et Al. 1995 ) . Directors who work in transnational companies should observe the Practices differences between states.

Most of the comparative surveies about voluntary revelation environment on companies ‘ patterns have been conducted in Canada, Europe, Australia and USA. Research has investigated the impact of revelation on multi-national companies in Asia, America and Europe ( Lau and Buckland 2000 ) by contrast ; Libya has been overlooked although Libya is the largest African provider of rough oil and gas to Western states ( Al-Hengari et al. 2007 ; Hafner 2002 ) .

This survey will analyze the degree of voluntary revelation environmental in Libyan and multi-national companies which runing in the oil sector in Libya. There are many environmental catastrophes that occurred as a consequence of oil operations and affected the environing environment in the universe. Oil spill that occurred by British oil company ( BP ) in the Gulf of Mexico and the important harm caused to environment surrounding is grounds of oil catastrophes as a consequence of oil operations. Much research has been conducted on the consequence of oil Industrial processes on the environment in USA, Europe, Japan and Australia ( Adenibi, 2005 ) . However, there is obvious deficiency of research related to how revelation about environmental information in one-year study for national companies or multi-national companies which runing in developing states. So, the revelation procedure might differ between Libyan and multi-national companies runing in the Libyan oil sector. This remains the instance despite the importance of the Libyan oil sector to the Libyan economic system and multi-national companies. As a consequence, This survey is seeking to analyze the current province of environmental accounting, revelation patterns and difference of revelation degrees between Libyan companies with multi-national companies by analyzing and analyzing a sample of the one-year studies of Libyan and multi-national corporations.

Research Problem

Research Question

It is assumed that both Libyan and multi-national companies disclosure about their environmental patterns to accomplish their aims of revelation. However, it is non obvious whether companies that operate in the Libyan oil sector are following similar processs and techniques in revelation procedures. The chief research inquiry for this survey is

“ What are the factors that explain the differences and revelation or non-disclosure of Voluntary environment accounting revelation information in the one-year studies of Libyan and multi-national companies runing in Libyan oil sector?

The following sub-questions have been designed in order to reply the chief inquiry:

-To what extent do Libyan companies and multi-national companies provide different degrees of voluntary environment accounting revelation information and different degrees information pertaining to the different subjects of voluntary environment accounting revelation in their one-year study?

Which are the most outstanding variables, organisational properties, and concern environment in explicating any differences or similarities and the sum of voluntary environment accounting revelation information provided?

Does the measuring technique applied in respect to the dependant variable, extent of voluntary environment accounting revelation information contained in one-year studies, consequence in different findings?

Does the measuring of dependant variable when using units of analysis under content analysis consequence in different findings?

This survey seeks to place the degree of voluntary of revelation environmental and how it affect public presentation by comparing Libyan and multi-national companies runing in the Libyan oil sector. It aims to place the differences between multi-national companies and Libyan companies in their revelation environment and to explicate why they are different.

Anterior surveies such as ( Bailes and Asada 1991 ; Douglas et Al. 2007 ; Ueno and Sekaran 1992 ) tend to halt at descriptions of cross-country differences in degree of revelation environmental information in the one-year study. By contrast this survey attempts to travel one measure farther by explicating ascertained differences in footings of theories which used in this field.

Most specifically, the chief concern of this survey is to analyze the impression that answerability of multi-national companies ( MNCs ) requires non merely unwraping environmental impacts on the place state ‘s society, but besides requires unwraping environmental information by their subordinates to the host state ‘s society ( Koerber 2009 ; Petkoski and Twose 2003 ) . This means, subordinates of foreign corporations runing in Libya are accountable to Libyan society and assumed to dispatch their answerability to the local people. The research continues this subject and chiefly focuses environmental revelation of subordinates of MNCs in general, and subordinates of different states MNCs in peculiar. The survey hence, foremost, explores existent environmental revelation and duty patterns to Libyan companies in Libya and secondly, the survey examines environmental revelation of subordinates of MNCs in general in Libya, and environmental revelation of planetary MNCs and their subordinates in peculiar.

Gap in the literature:

After reexamining the literature, this research undertaking identified the undermentioned spreads: there is limited research that has investigated environmental revelation patterns in Libya. In add-on, there is no known survey that has examined the difference between the environmental revelation between parent companies and their subordinates on the side and Libyan companies on other side. Furthermore, the factors and motives of the environmental revelation have non been studied plenty in Libya, particularly in the oil sector. Furthermore, the linkage between different or similar degree of revelation between subordinates and their parent companies is still undiscovered. Ahmad ( 2004 ) examined the environmental revelation in the Industrial Sector and this survey did non affect revelation in foreign companies runing in Libya, which shows it to be necessary to analyze the nexus between Libyan companies and subordinates with parent foreign companies in order to do it more clearer and transparent. Finally, most of the old surveies about the environmental public presentation have non incorporated the factors and differences in multi-national companies with their subordinates in Libya.


A batch of research workers referred to many factors which influence environmental revelation in one-year studies ( Buhr and Freedman 2001 ; Garcia-Ayuso and Larrinaga-Gonzelez 2003 ; Holland and Boon Foo 2003 ) . To analyze and command these factors, should specify a set of relevant indexs, phrases, or footings that relate to the underlying phenomenon being studied and utilize matched sample to analyze the difference between caput companies in their state and their subordinates in Libya every bit good as Libyan companies.

The Selected sample includes companies from different states which have subordinates operate in Libyan oil sector. These companies operate in different activities that related the oil sector ( Production, Maintenance and boring points, Prospecting and geographic expedition, Manufacturing and Petrochemical ) . Choice of these activities based on that the nature of a company ‘s industry has been identified as a factor potentially impacting corporate environmental revelation. An add-on to Libya, where the subordinates operating, this survey will analyze environmental revelation by parent companies in the U.S, the U.K, Canada, Italy, Spain, France, Japan, U.A.E, Malta, Austria, Australia,

The company that should be included in the sample for this survey have to:

aˆ? have its one-year study of 2010 which available for reappraisal, and

aˆ? have web page on the Internet can an accessible corporate by March 2011


Data aggregation

Most of old accounting research, peculiarly societal and environment accounting research have been used quantitative and qualitative methods. These methods have been used in order to obtain a fuller image of companies which are relevant to environment ( Ahmad 2004 ; Momin 2006 ) . As mentioned above, the sample of this survey will dwell of parent companies which have subordinates runing in the Libyan oil sector. These companies are from different states, such as the U.S, the U.K, Australia, Japan, the U.E.A, France, Spain, Italy, Austria, and Germany. This survey will utilize the content analysis and questionnaire.

The sample period will be 2009 to 2010. Environmental revelation questionnaire responses and company one-year and sustainability studies for 2009 and 2010 have been chosen to mensurate the extent of difference of revelation. To mensurate revelation in one-year studies, content analysis will be used because content analysis has been used loosely in anterior surveies into corporate environment revelation and content analysis allows corporate environment revelation to be consistently classified and compared.

Environmental revelation will be measured utilizing content analysis in two ways. First, the step of environmental revelation will be through the figure of words, sentence, or pages in one-year studies. Although, usage of ‘words ‘ as step of revelation is hard due to the fact that it is sometimes obtain precisely significance of word, but the figure of sentences as the most appropriate step of revelation is the footing for coding and analysis, Holland and Boon Foo ( 2003 ) . Second, the measuring of analysis will trust on the presence or absence of information covering a figure of different capable countries. So, in this survey, the countries will be divided into five classs as following ( type of environmental coverage provided, subdivisions of the one-year study devoted to environmental coverage, corporate environmental policies and undertakings, natural environment protection activities and accomplishments, and revelation of environmental informations in the one-year histories )

An in deepness interview as a qualitative method is used to research the positions of interviewees on the pattern and is deemed appropriate for researching the 2nd, 3rd and 4th sub-research inquiries.

As a qualitative method, the interview and questionnaire will utilize in deepness to research the positions of directors in companies on the environmental revelation. The research worker will utilize interviews with members of Senior Management, fiscal sections and environment sections in subordinates and Libyan companies. With the directors of parent companies, the research worker will utilize the questionnaire ; email will be used to direct the questionnaire.