International Journal of Academic Research in Business and Social Sciences

search-icon

Sectoral Analysis of Malaysian Companies’ CSR Initiatives for Organisational Risk Management

Open access
The term "Corporate Social Responsibility" (CSR), which has been used in the business sector for some time, is usually used to refer to a collection of initiatives designed to boost a company's public relations efforts and thereby improve its reputation. Globalization offers advantages to businesses, but it also brings with it new dangers and unstable conditions. As businesses grow more dependent and vulnerable, there is more uncertainty in corporate decision-making. Since of this interconnectedness, new risk management strategies are required because inexperienced players have developed. This study investigates the relationship between CSR and organisational risk management practises among Malaysia’s publicly listed firms. An exploratory content analysis was conducted for this study on the annual and sustainability reports of the 91 Malaysian listed PLCs from year 2004 to 2021. From a broad viewpoint, the results of this study indicate that Malaysian organisations have steadily adopted organisational risk management methods during the allotted time period, along with the expansion of CSR activities. To gain a deeper knowledge of this link, this study also reveals the industrial breakdown analysis in greater detail. This study shows that CSR practises and organisational risk management practises are on the rise in Malaysia. This upward trend may indicate a tendency toward higher CSR performance to counteract any anticipated or unanticipated organisational risk signals.

Agustina, L., & Baroroh, N. (2016). The relationship between Enterprise Risk Management (ERM) and firm value mediated through the financial performance. Review of Integrative Business and Economics Research, 5(1), 128–138.
Alam, S. S., & Islam, K. Z. (2021). Examining Adoption of Electronic Human Resource Management From the Perspective of Technology Organization Environment Framework. IEEE Engineering Management Review, 49(4), 59-75.
Babbie, E. R. (2020). The practice of social research. Cengage learning.
Beasley, M. S., Clune, R., & Hermanson, D. R. (2005). Enterprise risk management: An empirical analysis of factors associated with the extent of implementation. Journal of accounting and public policy, 24(6), 521-531.
Colquitt, L. L., Hoyt, R. E., & Lee, R. B. (1999). Integrated risk management and the role of the risk manager. Risk Management and Insurance Review, 2(3), 43-61.
Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work 2nd edition: Best Practices in managing and measuring corporate social, environmental, and economic impacts. San Francisco (CA, US): Berrett-Koehler Publishers.
Haniffa, R. M., & Cooke, T. E. (2002). Culture, corporate governance, and disclosure in Malaysian corporations. Abacus, 38(3), 317-349.
Ismail, M. (2009). Corporate social responsibility and its role in community development: An international perspective. Journal of International social research, 2(9).
Ismail, M. (2009). Corporate social responsibility and its role in community development: An international perspective. Journal of International social research, 2(9).
Kantabutra, S., & Avery, G. (2013). Sustainable leadership: Honeybee practices at a leading Asian industrial conglomerate. Asia-Pacific Journal of Business Administration.
Kensing, F., Simonsen, J., Bodker, K., & Ueno, N. (2004). Participatory IT Design–an exemplary case. Journal of the Center for Information Studies, 5(3), 58-68.
Kleffner, A. E., Lee, R. B., & McGannon, B. (2003). The effect of corporate governance on the use of enterprise risk management: Evidence from Canada. Risk Management and Insurance Review, 6(1), 53-73.
Levy, J. (2014). Sustainable Business: Community Engagement is not about Being Nice; it’s Fourth Pillar of CSR. The Guardian.
Raar, J. (2002). Environmental initiatives: towards triple?bottom line reporting. Corporate communications: An international journal.
Soltanizadeh, S., Rasid, S. Z. A., Golshan, N., Quoquab, F., & Basiruddin, R. (2014). Enterprise risk management practices among Malaysian firms. Procedia-Social and Behavioral Sciences, 164, 332-337.
Yusoff, W. F. W., & Adamu, M. S. (2016). The relationship between corporate social responsibility and financial performance: Evidence from Malaysia. International Business Management, 10(4), 345-351.
Zulkifli, N., & Amran, A. (2006). Realising corporate social responsibility in Malaysia: A view from the accounting profession. Journal of Corporate Citizenship, (24), 101-114.