Corporate social responsibility

Masum, Ahmad and Arowosaiye, Yusuf Ibrahim and Ahmad, Muhamad Hassan and Ali Mohamed, Ashgar Ali (2025) Corporate social responsibility. In: Company Law in Malaysia. Sweet & Maxwell, Thomson Reuters, Kuala Lumpur, Malaysia., pp. 437-448. ISBN 978-629-7700-74-8

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Abstract

The concept of corporate social responsibility (“CSR”) evolved slowly with the development of businesses. CSR is not limited to philanthropy and compliance anymore, rather, its effect is expanded from social, environmental, economic to companies’ other key areas as well, such as supply chain, public policy, marketplace, and workplace because CSR is involved in how companies earn and utilise their profit. The idea of CSR was discovered back in 1953, and over the years, by accomplishing the emerging needs of society, CSR experienced unprecedented growth. It covers multidimensional issues ranging from society, environment, workplace, marketplace, and CSR activities are developed to take into consideration various stakeholder groups such as investors, suppliers, customers, shareholders, board of directors, employees, the environment, or society. CSR is often assumed as a Western concept due to the developed economy and environmental concern, and that could be the reason CSR activities are poorly executed in developing countries. CSR has increased massively in significance in recent years as more companies realise the benefits of adopting sustainable practices to boost their reputation and brand image. In Malaysia, CSR has been a growing field of interest in recent years and consequently, a growing number of calls for companies to address sustainability in their business policies and practices, as well as to disclose on what and how well they are doing. CSR disclosure can be defined as the provision of information regarding human resource aspects, products and services, involvement in community projects including philanthropic activities and environmental matters. It is also conceptualised as the construct describing the relationship between companies and society. CSR has become a trend and is popular in a society whereby it is a crucial function in every company to organise a program related to social projects environment. The reason CSR has become viral factor is that companies involved in these initiatives recognise it as a key driver for business growth, which can lead to increased productivity in various areas. CSR gradually expanded to improve the work environment and equity of employees. Perceptions of CSR are based on the objectives of corporations such as sustainable management and contributions to society, which are the source of corporate profits. Most companies nowadays are facing important challenges due to the economic crisis. To overcome the critical challenges, companies need to consider themselves as socio- economic agents contributing to the community. It is considered as a strategy for the company’s economic, social, and environmental development. Thus, it is crucial to note that there is a growing demand and expectation from various stakeholders who expect companies to go beyond their profit agenda and be socially responsible. The belief that, beyond making profit for the shareholders, business enterprises should also serve the interest of all other stakeholders has culminated into the concept of CSR. The concept of social responsibility of corporations has engendered considerable interest in Malaysia in recent years. This chapter delves into the definition and concept of CSR, explores its relationship with company performance, discusses the merits and demerits of adopting CSR practices, and concludes with recommendations for further action.

Item Type:	Book Chapter
Uncontrolled Keywords:	Corporate social responsibility, philanthropy, social responsibility, environmental responsibility, public policy.
Subjects:	K Law > K Law (General)
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Ahmad Ibrahim Kulliyyah of Laws > Department of Civil Law
Depositing User:	Dr. Muhamad Hassan Ahmad
Date Deposited:	10 Nov 2025 10:37
Last Modified:	10 Nov 2025 10:37
URI:	http://irep.iium.edu.my/id/eprint/124242

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