Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

The Assessment of Corporate Social Responsibilities Reporting among Malaysian Public Listed Companies in Consumer Product and Services Industries based on Bursa Malaysia CSR Framework

Mohd Tarmizi Ibrahim, Sharifah Norhafiza Syed Ibrahim, Mohd Hisham Johari

http://dx.doi.org/10.6007/IJARBSS/v13-i9/18049

Open access

Over the past ten years, Malaysia has seen a rise in interest in corporate social responsibility (CSR). The primary justification for the necessity of CSR reporting among Bursa Malaysia-listed firms is that those corporations have moral and financial duties to society. The relevance of CSR reporting in Malaysia has increased since the Bursa Malaysia Corporate Social Responsibility Framework was introduced in 2006 and made mandatory for disclosure in the annual reports of listed companies starting in 2016. Based on the Bursa Malaysia CSR Framework 2006's four domains—marketplace, community, workplace, and environment—this study investigates the CSR reporting in the annual reports of businesses in Malaysia's consumer goods and services sector. The CSR reporting in corporate annual reports was examined in this study using qualitative research. According to this study, the annual report's sustainability report, or CSR part, contains information about CSR reporting. The research results show the frequency of CSR reporting as well as the areas of focus on CSR activities and reporting among 20 consumer product and service firms listed on the Bursa Malaysia from 2020 to 2022.

Ajina, A. S., Roy, S., Nguyen, B., Japutra, A., & Al-Hajla, A. H. (2020). Enhancing brand value using corporate social responsibility initiatives: Evidence from financial services brands in Saudi Arabia. Qualitative Market Research: An International Journal, 23(4), 575-602.
Alam, M. M., Tahir, Y. M., Saif-Alyousfi, A. Y., Ali, W. B., Muda, R., & Nordin, S. (2022). Financial factors influencing environmental, social, and governance ratings of public listed companies in Bursa Malaysia. Cogent Business & Management, 9(1), 2118207.
Al-Dhamari, R., Al-Hamrh, B., Al Farooque, O., & Moses, E. (2022). Corporate social responsibility and firm market performance: the role of product market competition and firm life cycle. Asian Review of Accounting, vol 30, No 5, 2022.
Bakar, A. B. S. A., Ghazali, N. A. B., & Ahmad, M. B. (2019). Sustainability reporting in MalaysiaThe extent and quality. International Journal of Academic Research in Business and Social Sciences, 9(5), 816–835. https://doi.org/10.6007/IJARBSS/v9-i5/6009.
Bowen, H. R. (1953), Social Responsibilities of the Businessman, Harper & Row, New York, NY.
Bursa Malaysia. (2006), “Bursa Malaysia’s CSR framework for Malaysian PLCs”, available at: www.bursamalaysia.com (accessed 10 August 2011).
Bursa Malaysia. (2007), “CSR 2007 status report”, available at: www.bursamalaysia.com (accessed 24 August 2011).
Bursa Malaysia. (2011), “Powering business sustainability: a guide for directors”, available at: www.bursamalaysia.com (accessed 24 August 2011).
Carlini, J., Grace, D., France, C., & Lo Iacono, J. (2019). The corporate social responsibility (CSR) employer brand process: Integrative review and comprehensive model. Journal of Marketing Management, 35(1-2), 182-205.
Colenberg, S., & Jylha, T. (2022). Identifying interior design strategies for healthy workplaces–A literature review. Journal of Corporate Real Estate, 24(3), 173-189.
Samuel, D. S., Mahenthiran, S., & Ramasamy, R. (2022). CSR disclosures, CSR awards and corporate governance as determinants of the cost of debt: Evidence from Malaysia. International Journal of Financial Studies, 10(4), 87.
Farooq, M., & Noor, A. (2021). The impact of corporate social responsibility on financial distress: Evidence from developing economy. Pacific Accounting Review, 33(3), 376– 396.
Frederick, W. C. (1994), “From CSR1 to CSR2”, Business and Society, Vol. 33 No. 2, pp. 150-64.
Freeman, R. E., Dmytriyev, S. D., & Phillips, R. A. (2021). Stakeholder theory and the resource-based view of the firm. Journal of Management, 47(7), 1757-1770.
Freudenreich, B., Lüdeke-Freund, F., & Schaltegger, S. (2020). A stakeholder theory perspective on business models: Value creation for sustainability. Journal of Business Ethics, 166(1), 3-18.
Giannarakis, G., Andronikidis, A., & Sariannidis, N. (2020). Determinants of environmental disclosure: Investigating new and conventional corporate governance characteristics. Annals of Operations Research, 294(1), 87-105.
Gunawan, J., Permatasari, P., & Sharma, U. (2022). Exploring sustainability and green banking disclosures: A study of banking sector. Environment, Development and Sustainability, 24(9), 11153-11194.
Han, S. J., & Hazard, N. (2022). Shared leadership in virtual teams at work: practical strategies and research suggestions for human resource development. Human Resource Development Review, 21(3), 300–323.
Hays-Thomas, R. (2022). Managing workplace diversity, equity, and inclusion: A psychological perspective. Taylor & Francis.
Hickman, L. E., & Cote, J. (2019). CSR reporting and assurance legitimacy: A client–assuror dyad investigation. Journal of Applied Accounting Research, 20(4), 372–393.
Ibrahim, M. T., Ibrahim, S. N. S., Shamsudin, A. (2022). The assessment of digitalisation among Malaysian public listed companies in consumer product and services industries using business process management in the pre- and post-covid-19 situations. International Journal of Academic Research in Business and Social Science, 12 (12), 529 – 549.
Ibrahim, S. N. S., Shamsudin, A., Ibrahim, M. T., Abdullah, S. M. Y., and Bani, H. (2021). An initial assessment of voluntary disclosures on digitalisation by Malaysian public listed companies. International Journal of Academic Research in Business and Social Sciences, 11 (8), 1840 – 1851.
Khan, H. Z., Bose, S., & Johns, R. (2020). Regulatory influences on CSR practices within banks in an emerging economy: Do banks merely comply? Critical Perspectives on Accounting, 71, 102096.
Kamaludin, K., Ibrahim, I., Sundarasen, S., & Faizal, O. V. A. (2022). ESG in the boardroom: Evidence from the Malaysian market. International Journal of Corporate Social Responsibility, 7(1), 1-15.
Katmon, N., Mohamad, Z.Z., Norwani, N.M. and Al Farooque, O. (2019), Comprehensive board diversity and quality of corporate social responsibility disclosure: evidence from an emerging market, Journal of Business Ethics, Vol. 157 No. 2, pp. 447-481, doi: 10.1007/s10551-017- 3672-6.
Khamis, N. I., & Wan Ismail, W. K. (2022). The impact of corporate social responsibility on corporate image in the construction industry: A case of SMEs in Egypt. Journal of Sustainable Finance & Investment, 12(1), 128–146.
KPMG. (2022), Survey of sustainability reporting 2022, available at: https://home.kpmg/my/en/home/ insights/2022/10/survey-of-sustainability-reporting-2022.html.
Le, T. T. (2022). Corporate social responsibility and SMEs' performance: Mediating role of corporate image, corporate reputation, and customer loyalty. International Journal of Emerging Markets.
Lau, C. K. (2019), The economic consequences of business sustainability initiatives, Asia Pacific Journal of Management, Vol. 36 No. 4, pp. 937-970.
Mamun, M. A., Shaikh, J. M., and Easmin, R. (2017), Corporate social responsibility disclosure in Malaysian business, Academy of Strategic Management Journal, Vol. 16 No. 2, pp. 29-47.
McGahan, A. M. (2021). Integrating insights from the resource-based view of the firm into the new stakeholder theory. Journal of Management, 47(7), 1734-1756.
Michelion, G., Trojanowski, G., & Sealy, R. (2021). Narrative Reporting: State of the Art and Future Challenges. Accounting in Europe.
https://doi.org/https://doi.org/10.1080/17449480.2021.1900582.
Moneva, J. M., Bonilla-Priego, M. J., & Ortas, E. (2020). Corporate social responsibility and organizational performance in the tourism sector. Journal of Sustainable Tourism, 28(6), 853-872.
Muttakin, M. B., Khan, A., and Mihret, D. G. (2018), The effect of board capital and CEO power on corporate social responsibility disclosures, Journal of Business Ethics, Vol. 150 No. 1, pp. 41-56, doi: 10.1007/s10551-016-3105-y.
Nave, A., & Ferreira, J. (2019). Corporate social responsibility strategies: Past research and future challenges. Corporate Social Responsibility and Environmental Management, 26(4), 885-901.
Nguyen, H. T., Hoang, T. G., & Luu, H. (2019). Corporate social responsibility in Vietnam: opportunities and innovation experienced by multinational corporation subsidiaries. Social Responsibility Journal, 16(6), 771-792.
Nurul, H. M. N., Talya, M. F., and Noorabiatul, A. J. (2023). Corporate social responsibility (CSR) disclosure and corporate reputation of Malaysian bank: adapting the Bursa Malaysia’s framework. Insight Journal, UiTM Cawangan Johor.
Ong, T. S., Teh, B. H., and Lee, A. S. (2019), Contingent factors and sustainable performance measurement (SPM) practices of Malaysian electronics and electrical companies, Sustainability, Vol. 11 No. 4, pp. 1-33, doi: 10.3390/su11041058.
O'Brien, I. M., Ouschan, R., Jarvis, W., & Soutar, G. N. (2020). Drivers and relationship benefits of customer willingness to engage in CSR initiatives. Journal of Service Theory and Practice, 30(1), 5–29.
Oskouei, Z. H. (2019), Linking social and economic responsibilities and financial performance: the assisting role of innovation for an oil engineering and development company, International Journal of Finance and Economics, Vol. 24 No. 3, pp. 1345-1354, doi: 10.1002/ ijfe.1722.
Pratihari, S. K., & Uzma, S. H. (2019). A survey on bankers’ perception of corporate social responsibility in India. Social Responsibility Journal, 16(2), 225-253.
Rahim, I. (2021), Environmental disclosure and firm efficiency: a study of Pakistani firms, Asian Review of Accounting, Vol. 29 No. 3, pp. 269-290, doi: 10.1108/ARA-05-2019-0100.
Rahman, A. A., Castka, P., & Love, T. (2019). Corporate social responsibility in higher education: A study of the institutionalization of CSR in Malaysian public universities. Corporate Social Responsibility and Environmental Management, 26(4), 916-928.
Saeed, A., Gull, A. A., Rind, A. A., Mubarik, M. S., and Shahbaz, M. (2021), Do socially responsible firms demand high-quality audits? An international evidence, International Journal of Finance and Economics. doi: 10.1002/ijfe.2270.
Sharma, E., & Sathish, M. (2022). “CSR leads to economic growth or not”: an evidence-based study to link corporate social responsibility (CSR) activities of the Indian banking sector with economic growth of India. Asian Journal of Business Ethics, 11(1), 67–103.
Shad, M. K., Lai, F. W., Shamim, A., and Khan, A. A. (2018), Corporate sustainability reporting practices in the Malaysian oil and gas companies, A Journal of Management and Humanities, Vol. 1 No. 1, pp. 1-10.
Shad, M. K., Lai, F. W., Shamim, A., and McShane, M. (2020), The efficacy of sustainability reporting towards cost of debt and equity reduction, Environmental Science and Pollution Research, Vol. 27 No. 18, pp. 22511-22522.
Sodhi, M. S., Kumar, C., & Ganguly, A. (2022). How mandatory corporate social responsibility can help governments with development goals. Business Strategy & Development, 5(1), 30-43.
SRG. (2015), Sustainability Reporting Guide, B. Malaysia Ed. 1 ed., Bursa Malaysia, Kuala Lumpur.
Tamvada, M. (2020). Corporate social responsibility and accountability: A new theoretical foundation for regulating CSR. International Journal of Corporate Social Responsibility, 5(1), 1–14.
Tandelilin, E., & Usman, B. (2022). Toward a better understanding of social impact, CSR reporting and firm performance: A look at the ASEAN banking industry. Social Responsibility Journal.
Teeroovengadum, V. (2022). Service quality dimensions as predictors of customer satisfaction and loyalty in the banking industry: Moderating effects of gender. European Business Review, 34(1), 1-19.
Tiwari, M., Tiwari, T., Sam Santhose, S., Mishra, L., Mr, R. and Sundararaj, V. (2021), Corporate social responsibility and supply chain: a study for evaluating corporate hypocrite with special focus on stakeholders, International Journal of Finance and Economics. doi: 10.1002/ ijfe.2483.
Waheed, A., & Zhang, Q. (2020). Effect of CSR and ethical practices on sustainable competitive performance: A case of emerging markets from stakeholder theory perspective. Journal of Business Ethics, 1–19.
Wang, Y., Xu, S., & Wang, Y. (2020). The consequences of employees perceived corporate social responsibility: A meta?analysis. Business Ethics: A European Review, 29(3), 471-496.

In-Text Citation: (Ibrahim et al., 2023)
To Cite this Article: Ibrahim, M. T., Ibrahim, S. N. S., Johari, M. H., & Johari, M. H. (2023). The Assessment of Corporate Social Responsibilities Reporting among Malaysian Public Listed Companies in Consumer Product and Services Industries based on Bursa Malaysia CSR Framework. International Journal of Academic Research in Business and Social Sciences, 13(9), 1933–1944.