AN ANALYSIS OF CORPORATE SOCIAL RESPONSIBILITY (CSR) VIEWS FROM MALAYSIAN COMPANIES ABSTRACTS
Purpose – The aim of this paper is to explore the views of managers among Malaysian companies towards corporate social responsibility and how it influences business ethics. Design/methodology/approach – This paper analyses the views of Malaysian managers regarding corporate social responsibility. Interviews were conducted to 12 organizations in Malaysia comprising of major corporations as well as Small Medium Enterprises (SMEs). Findings – The findings reveal that out of 12 companies selected across the Klang Valley, Malaysia, seven companies execute corporate social responsibility for the sake of its brand image and good reputation. Majority of the managers interviewed agreed that corporate social responsibility should be implemented in order to contribute to the society. Originality – The literature review is expected to provide the link between conventional CSR concept with Islamic values and principles. This paper recommends companies especially in Malaysia to adopt corporate social responsibility as an ethical motivation rather than instrumental means. Keywords – Business, Ethics, Corporate Social Responsibility, Organization, Malaysia
Over the last recent years, Corporate Social Responsibility (CSR) has been termed to be a significant issue within global business organisations. The core purpose of CSR is to fulfil a company’s responsibility towards its stakeholders in terms of economic, social and environment (Siwar & Md Tareq, 2009). However, the fundamental basis act of selfless contribution for the public has been tarnished and downgraded by huge corporate businesses when CSR began to be treated as a means to gain profit maximization which is driven by self-interest by enlarge. There are several meanings to define the concept of corporate social responsibility. First, CSR are the obligations entrusted upon business organisations to utilise its resources efficiently in order to bring benefits to the stakeholders by fulfilling its duties as a member of the society itself (Kok et al, 2001; Adam & Zutshi, 2004). The conventional definition of CSR is derived from the concept of vicegerency in Islam according to Surah Al-Baqarah, verse 31. Albeit the concept of CSR is defined in positive aspects, it does not disregard the possibility of being carried out and practiced in an unethical paradoxical manner. Business ethics is understood to be what is acceptable and not acceptable that can be conducted in the business based on stakeholders. The main objective of this article is to focus on the perspective of Malaysian managers towards the views of CSR and how it is implemented in the organization.
Based on the study of our articles, CSR manifests several business benefits, namely, good image and reputation, building a positive relationship with the customers, a better recruitment and retention of talented employees, positive motivation in better working environment, improving financial returns and reducing CSR related risks. These benefits are measured based on the preference of (a) consumers, (b) employees, and (c) upholding the organization’s reputable name.
Firstly, consumers are one of the most important stakeholders of an organization. Firms, which are socially responsible, transparent, and trustworthy, are at a better position of gaining consumer preferences (Willmott, 2001 & Mitchell, 2001; Knox & Maklan, 2004). The higher the awareness of social contribution, the more enhanced positive effects are on consumer purchase intention (Lee & Shin, 2009). The organization can also improve their consumption experience with customers by conducting CSR activities. Customers are commonly in favour to buy products from well-established companies that practice CSR activities, giving these organizations a good marketing strategy by word-of-mouth (Knox & Maklan, 2004). They...
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