Corporate Social Responsibility encompasses several issues that range from corporate governance, business ethics and SRI (socially responsible investing) to community investment and environmental sustainability (Shirley et. al 85). In Malaysia, CSR started with minor contribution that was driven traditionally by racial motivations and religions. With time as multinational corporations started entering Malaysia; business environment received western influence and corporate contributions had structure and were linked to the corporate strategy. With the focus of the Malaysian government increasing on CSR, several initiatives were developed for the implementation of CSR frameworks. In 2007, companies in Bursa Malaysia needed to disclose their practices and activities related to CSR. CSR implementation was further propelled as the Malaysian government introduced tax rebates to businesses, which implemented and practices CSR programs (Yap N.pag).
CSR practice has become part of all major corporations in Malaysia and with the government making declaration of CSR actions legal, corporate social responsibility has become highly formal in the country. All corporations need to reveal their action and their contributions to the society, business and environment. Most of the businesses in Malaysia have a webpage on their official website where they discuss their actions and also reveal information in prospectus about the activities that their company is performing. The Malaysian government’s action to give tax rebates to business that perform CSR activities further makes it formal action and many businesses are already taking advantage.
Good and Bad CSR Companies
In 2014, Canon (Malaysia) held their first CSR program on 7th March 2014 in Johor at the Legoland Malaysia Theme Park. The event was an effort from Cannon to give back to the society and do their bit for the less fortunate children. Around 102 children and 12 caretakers from the Berkat Children's Home, Calvary Homes and Puspanesam Home took part in the one-day outing (Canon N.pag). Other organizations in Malaysia that are performing CSR initiatives of their own are CIMB, Sony, Dumex, etc. There are few organizations that are failing to perform their CSR responsibilities. BAT (British American Tobacco) Malaysia Berhad, one of the leading distributors of tobacco products in the Malaysian market. Despite relentless initiatives and campaigns to discourage consummation and smoking of tobacco made products, BAT has been increasing their production and has reported regular revenue increases from their activities. Similarly, other tobacco companies like Philip Morris have also avoided the campaigns against increasing tobacco production (Abdulrazak & Ahmad 213).
Malaysian Business Practices
Malaysian companies, much like most of the world have adhered to the legalization mandate of including CSR initiatives. Therefore, the majority of the Malaysia and global firms operating in the Malaysian market happily adhere to the CSR initiatives acceptable all over the world. But, unlike the rest of the world CSR in Malaysia has remained loose over environmental concerns. CSR activities aimed at preserving that environment are not the priority in Malaysia, unlike the European companies as the environment has been secondary compared to the economic benefit of businesses (Yap N.pag). In addition, Malaysia also additionally focuses on child development and CSR initiatives are planned by corporations. The level of their efforts and focus on the development of the future generation and protecting the less fortune children is comparatively unmatchable anywhere else in the world (Unicef N.pag).
CSR entered Malaysia with minor initiatives of the government and became official in 2007 with the mandate to include CSR in corporate strategy. With increased focus and the government giving rebates to companies utilizing CSR initiatives, CSR in Malaysia has become formal in nature and practice. There are good companies that are following the CSR initiatives and some who fail to adhere to the CSR initiatives. Malaysia is a country where CSR initiatives have an increased focus on child development and limited interest on environmental concerns.
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