Benefits and challenges of corporate social responsibility implementations: Evidence from manufacturing sector in Malaysia

  • Abstract
  • Keywords
  • References
  • PDF
  • Abstract

    Prior studies posited that corporate social responsibility (CSR) by organizations indicates a continuum business commitment to act appropriately. CSR activities carried out would capture the issues, processes and values that companies must tackle to minimize harmful effects stemming from their activities and at the same time the company can create economic, social as well as environmental value for the society. However, not all companies would be motivated to carry out CSR activities. Thus, this study aims to examine the challenges that companies have to face in implementing CSR activities. In addition, the benefits derived from the activities are also discussed. Questionnaires were distributed to manufacturing companies registered with the Federation of Malaysian Manufacturers. The results of this research project suggest that respondent companies appear to apply stakeholder approach in implementation of their CSR activities, where they value their relationship with the stakeholders and are very concerned about the stakeholders’ perceptions on their companies. The CSR activities which they implement appear to serve as a bridge to tighten these relationships. On the other hand, the cost and complexity of implementation, and time consumed to implement are among the biggest challenges to the organizations in their implementation of CSR activities.



  • Keywords

    Corporate Social Responsibility; Challenges; Manufacturing Companies; Malaysia.

  • References

    1. [1] Epstein MJ, Freedman M. Social Disclosure and the Individual Investor. Accounting, Auditing & Accountability Journal. 1994;7(4):94-109.

      [2] Deegan C, Rankin M. Do Australian companies report environmental news objectively?. Accounting, Auditing & Accountability Journal. 1996;9(2):50-67.

      [3] Yoon Y, Gurhan-Canli Z, Schwarz N. The effect of corporate social responsibility (CSR) activities on companies with bad reputations. Journal of Consumer Psychology,. 2006;16(4):377-90.

      [4] Schipper I, Haan ED. CSR issues in the ICT hardware manufacturing sector. SOMO ICT Sector Report, 2005.

      [5] Uwalomwa U. An examination of the relationship between management ownership and corporate social responsibility disclosure: A study firms in Nigeria. Journal of Finance Accounting. 2011;2(6):23-9.

      [6] Adams C, Zutshi A. Corporate social responsibility: Why business should act responsibly and be accountable,. Accountants Today. 2006;March Edition:24-8.

      [7] Ditlev-Simonsen CD. From corporate social responsibility awareness to action?,. Social Responsibility Journal. 2010;6(3):452-68.

      [8] Schouten EMJ. Defining the corporate social responsibility of business from international law. Managerial Law. 2007;49(1/2):16-36.

      [9] Hill RP, Stephens D, Smith I. Corporate social responsibility: an examination of individual firm behavior. Business and Society Review, . 2003;108(3):339-64.

      [10] Handfield R, Sroufe R, Walton S. Integrating environmental management and supply chain strategies. Business Strategy and the Environment,. 2005;14:1-19.

      [11] Setthasakko W. Barriers to implementing corporate environmental responsibility in Thailand. International Journal of Organizational Analysis,. 2009;17(3):169-83.

      [12] Bergstrom K, Solẻr C, Shanahan H. Professional food purchasers’ practice in using environmental information. British Food Journal. 2005;107(5):306-19.

      [13] Swierczek FW, Onishi J. Culture and conflict: Japanese managers and Thai Subordinates. Personnel Review,. 2003;32(2):187-210.

      [14] Fai Yuen K, Ming Lim J. Barriers to the implementation of strategic corporate social responsibility in Shipping. The Asian Journal of Shipping and Logistics. 2016;32(1):49-57.

      [15] Arevalo JA, Aravind D. Corporate social responsibility practices in India: approach , drivers, and barriers. Corporate Governance: The international journal of business in society. 2011;11(4):399-414.

      [16] Hohnen P, Pottss J. Corporate social responsibility: an implementation guide for business. Manitoba.: International Institute for Sustainable Development; 2007.

      [17] Turker D. Measuring Corporate Social Responsibility: A Scale Development Study. Journal of Business Ethics. 2009;85:411-27.

      [18] Siltaoja ME. Value priorities as combining core factors between CSR and reputation – A qualitative study. Journal of Business Ethics,. 2006;68(1):91-111.

      [19] Galbreath J. How does corporate social responsibility benefits firms? Evidence from Australia. European Business Review. 2010;22(4):411-31.

      [20] Rangan K, Chase LA, Karim S. Why every company needs a CSR strategy and how to build it. 2012.

      [21] Vilanova M, Lozano JM, Arenas D. Exploring the nature of the relationship between CSR and competitiveness. Journal of Business Ethics, . 2009;87:57-69.

      [22] Santos M. CSR in SMEs: Strategies, Practices, Motivations and Obstacles. Social Responsibility Journal,. 2011;7(3):490-508.

      [23] Perrini F, Russo A, Tencati A. CSR Strategies of SMEs and Large Firms. Evidence from Italy. Journal of Business Ethics. 2007;74:285-300.

      [24] Laudal T. Drivers and Barriers of CSR and the Size and Internationalization of Firms. Social Responsibility Journal. 2011;7(2):234-56.

      [25] Friedman M. The social responsibility of business is to increase its profits, corporate ethics and corporate governance. In: Zimmerli WC, Holzinger, M. & Ritcher, K, editor. Berlin Heidelberg: Springer; 2007.




Article ID: 13320
DOI: 10.14419/ijet.v7i2.29.13320

Copyright © 2012-2015 Science Publishing Corporation Inc. All rights reserved.