ISSN: 2225-8329
Open access
A corporate social responsibility (CSR) strategy is thought to provide value to a business in the form of monetary gains in addition to fostering a positive corporate image. Still, there are a variety of motivations for participating in CSR initiatives. Without a doubt, participating in CSR needed a significant financial and resource commitment, which will reduce the corporation's profit margin. CSR activities has been proved that it can improve a company's reputation and present a positive picture to stakeholders. Even if businesses must contribute financially, the expenses will pay off in the form of increased profits and shareholder trust and confidence. This study is aimed to study the impact of corporate social responsibility (CSR) on firm financial performance of the selected sectors that help in raising Malaysia economy. In this research, a quantitative method is adopted to analyse the secondary data collected through Stata 14 SE software. This research obtained the data over the period of 2016 to 2020 of 124 public listed companies of Malaysia from the sector of construction, industrial products and services, consumer products and services, plantation, and energy. From this study, it showed that CSR has insignificance impact on ROA of the public listed companies in Malaysia from the five selected sectors. The findings of this study also show that CSR has significance impact on financial performance as assessed by NPM of public listed companies in Malaysia from the five selected sectors.
Ahmad, N. B. J., Rashid, A., & Gow, J. (2017). Board meeting frequency and corporate social responsibility (CSR) reporting: evidence from Malaysia. Corporate Board: Role, Duties and Composition, 13(1), 87-99.
Akinleye, D., Adedayo, F. T., & Akinleye, M. J. (2018). Corporate Social Responsibility, Profit After Tax and Return on Asset of Selected Multinational Companies: A Granger Causality Approach. European Journal of Business and Management, 10(9), 36-47.
Azid, N. N. A., & Tahir, P. R. (2019). Corporate social responsibility environment in Malaysia: Lessons learned from the effectiveness of the CSR programme By Axiata group. International Journal of Entrepreneurship, 2(5), 72-82.
Bhardwaj, P., Chatterjee, P., Demir, K. D., & Turut, O. (2018). When and how is corporate social responsibility profitable?. Journal of Business Research, 84, 206-219.
Ismail, M., Alias, S. N., & Rasdi, R. M. (2015). Community as stakeholder of the corporate social responsibility programme in Malaysia: outcomes in community development. Social Responsibility Journal.
Khan, R. E. A., & Aslam, I. (2017). Child immunization in Pakistan: Socio-institutional and regional aspects. Asian Journal of Economic Modelling, 5(1), 49-56.
Lim, J. (2023). CSR in Malaysia: 6 Ways for Business to Make a Difference. https://foundingbird.com/my/blog/corporate-social-responsibility-malaysia-for-businesses
Masood, Z., & Pankaj, M. (2019). Corporate Social Responsibility and Competitive Advantage of Private Telecom Sector in Afghanistan. https://www.researchgate.net/publication/334319257_Corporate_Social_Responsibility_and_Competitive_Advantage_of_Private_Telecom_Sector_in_Afghanistan_Dr_Pankaj_Meel
Mohyletska, U. (2023). The effect of CSR on financial performance. Ecohz. https://www.ecohz.com/blog/how-does-csr-affect-companies-financial-performance
Radzi, N. A. M., Lee, K. E., Hashim, H., Ali, A. F. M., Normaizatul Akma, S., & Hasbollah, H. R. (2020). Charity sees the need, not the cause: The strategies CSR during the pandemic outbreak. Palarch’s Journal of Archaeology of Egypt/egyptology.
Razali, M. W. M., Sin, W. H. S., Lunyai, J. A., Hwang, J. Y. T., & Yusoff, I. Y. M. (2018). Corporate social responsibility disclosure and firm performance of Malaysian public listed firms. International Business Research, 11(9), 86-95.
(Joo et al., 2024)
Joo, F. A. A. R., Jais, M. bin, & Janang, J. S. (2024). Corporate Social Responsibility and Firm Financial Performance of Public Listed Company in Malaysia. International Journal of Academic Research in Accounting Finance and Management Sciences, 14(2), 56–67.
Copyright: © 2024 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seenavc at: http://creativecommons.org/licences/by/4.0/legalcode