Corporate Social Responsibility In Malaysia
Introduction
Corporate social responsibility (CSR) is defined as the social responsibility of business encompasses the economic, legal, ethical and discretionary expectations that a society has of organizations at a given point in time (Carroll, 1979) CSR refers to the corporate initiative to assess and take responsibility to operate in an economic, social and environmentally sustainable manner. When companies take effects on the environment and impact on social and they do so transparently, it helps them succeed, in particular through encouraging value creation and social welfare.
The importance of corporate social responsibility reporting in today 's business markets is rising, Increased stakeholder pressure requiring companies to be transparent
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Most of the companies also find out the importance of social networking. ( Darusa, Yusoff, & Hamzahb, 2013)Nowadays, Public Listed Companies’ annual report can be easily retrieve from Bursa Malaysia or its official website. Thus, shareholders can get timely information about CSR from the annual report. This is one of the most convenient ways to communicate the CSR information to their shareholders. Over the past decade, the concerns of shareholders are not only on the financial consideration but had expended to something beyond it. Given an example, shareholders now are also taking in consideration on several economic, social, environmental and corporate governance issues. ( Noked, 2013) As CSR is one of the issues that are highly concerned by the society, companies that implement CSR activities would be an attraction to the shareholders and thus indirectly increase the company profitability level. It will also create better investor relationship and access capital. ( Abdul Razaka & Mustapha, 2013)This is one of the main factors that influence the CSR disclosure among Public Listed Companies in …show more content…
Will the level of CSR disclosure influence financial performance of the company?
A study by Mustaruddin Saleh, Norhayah Zulkifli, and Rusnah Muhamad (2011) 'looking for evidence of the relationship between Corporate Social Responsibility (CSR) and Corporate Financial Performance (CFP) in an emerging market ' was carried out as the empirical examination of the relationship between CSR and CFP in the emerging markets context is limited. In fact, Public Listed Companies in Malaysia are lack of knowledge and awareness of CSR through the prior studies. According to Tsang (1998) a higher proportion of large and medium-sized companies disclosed social information compared to small companies.
A literature analyses on relationship between CSR and CFP had performed by Raza, Ilyas, Rauf and Qamar (2012) using content analysis from 1972 to 2012. There are 76 numbers of studies that they had analyzed48 found positive relations, 4 found mixed relations, 8 found negative relations and 16found there are no relations between CSR and CFP. The independent variable is use for CSR dimension of workplace, community, environment and marketplace while the dependent variable is use for Return on Asset (ROA) and Return on
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