Obstacles to Implementing Social Responsibility Accounting and Their Impact on the Quality of Financial Reports: A Field Study on Commercial Banks Operating in Az-Zawiya City

Abstract

This study investigated the impact of corporate social responsibility (CSR) accounting obstacles (absence
 of regulatory controls, political instability, and training deficiencies) on the quality of financial reports in commercial banks in Al-Zawiya, Libya. Adopting a descriptive-analytical approach, a questionnaire was used to collect field data from a sample of 100 accountants and financial managers across the surveyed banks.

Data were analyzed via SPSS using Pearson correlation and linear regression (simple and multiple). Results revealed a statistically significant impact of CSR accounting obstacles, as a holistic construct, on financial reports' quality. Specifically, the "deficiency in accountants' training programs" dimension emerged as the most significant predictor, proving that human capital development is the fundamental driver of reporting quality. Consequently, the researcher recommends that Libyan commercial banks invest in human capital through advanced training on international sustainability standards. Additionally, the Central Bank of Libya should issue standardized regulatory guidelines and reporting frameworks to mandate environmental and social disclosures.