In support of the Saudi Financial Market Forum’s initiatives, the Ministry of Human Resources and Social Development has entered into a cooperative agreement with the Saudi Exchange (Tadawul). Representing the ministry was Mr. Ahmed bin Saleh Al-Majed, undersecretary for Community Development, while Mr. Mohammed bin Sulaiman Al-Rumaih, executive director of Tadawul Saudi Arabia, represented the exchange.
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The main objective of the agreement is to establish the Social Responsibility Index, which evaluates companies’ performance in terms of social responsibility. This index also aims to create a competitive advantage for companies listed in the Saudi market, encouraging them to enhance their practices and contributions in the field of social responsibility. The index was developed through collaboration between the Ministry of Human Resources and Social Development, the Capital Market Authority, and the Saudi Exchange. International indicators were taken into consideration to ensure the index’s standards align with global benchmarks for measuring companies’ performance in this area.
The Undersecretary for Community Development emphasized that the Ministry further developed the Social Responsibility Index with the intention of increasing companies’ awareness and motivating them to improve their practices and contributions. This, in turn, enhances the brand image of companies that adhere to these standards.
Moreover, the standards were designed to incorporate specific guidelines on how businesses engage with and contribute to community events and concerns. The Ministry of Human Resources and Social Development is actively seeking maximum cooperation with all stakeholders to fulfill its vision of promoting businesses’ fulfillment of their social responsibilities. This agreement represents another significant step towards achieving that objective.
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