CSR Still Wanting
May 2008
Malaysian Plcs generally lag behind international best practices and disclosures in corporate social responsibility (CSR), revealed a pioneering 2007 survey commissioned by stock exchange Bursa Malaysia.
The findings of the CSR 2007 Status Report showed that, on average, the Plcs surveyed demonstrated lack of knowledge and awareness of key CSR concepts. The study also pinpointed the absence of top management commitment towards CSR, which could explain the lack of integration between sustainability measures and business strategies. Interestingly, many companies still equate CSR reporting solely to community investment and philanthropy, demonstrating the lack of understanding among companies.
The survey, which sampled 200 listed corporations, measured their impacts across four dimensions, namely, the marketplace, workplace, environment and community. Results showed that only 32.5% of companies ranked in the above average, good or leading categories of CSR practices, while two-thirds of Plcs ranked either average (27.5%), below average (28.5%) or poor (11.5%). Listed multinational corporations achieved the highest score.
Among the best performers were gaming, tobacco and alcohol-related firms, possibly due to the businesses' social and environmental impacts, whereas construction firms emerged as the least CSR-savvy.
The survey highlighted weak corporate commitment to the environment and diversity. There was a lack of environmental preservation efforts by local firms, along with inadequate female representation at top management level, and less than satisfactory Malay and Indian representation in the senior company hierarchy. Malays make up the majority of the multiracial population that also comprises Chinese, Indian and indigenous peoples.
The exchange urged companies to manifest CSR in their business practices and not to treat CSR initiatives as an add-on list of activities in order to promote business sustainability and add value to the capital markets, as well as to enhance the international reputation of Malaysian companies.
Malaysian Plcs generally lag behind international best practices and disclosures in corporate social responsibility (CSR), revealed a pioneering 2007 survey commissioned by stock exchange Bursa Malaysia.
The findings of the CSR 2007 Status Report showed that, on average, the Plcs surveyed demonstrated lack of knowledge and awareness of key CSR concepts. The study also pinpointed the absence of top management commitment towards CSR, which could explain the lack of integration between sustainability measures and business strategies. Interestingly, many companies still equate CSR reporting solely to community investment and philanthropy, demonstrating the lack of understanding among companies.
The survey, which sampled 200 listed corporations, measured their impacts across four dimensions, namely, the marketplace, workplace, environment and community. Results showed that only 32.5% of companies ranked in the above average, good or leading categories of CSR practices, while two-thirds of Plcs ranked either average (27.5%), below average (28.5%) or poor (11.5%). Listed multinational corporations achieved the highest score.
Among the best performers were gaming, tobacco and alcohol-related firms, possibly due to the businesses' social and environmental impacts, whereas construction firms emerged as the least CSR-savvy.
The survey highlighted weak corporate commitment to the environment and diversity. There was a lack of environmental preservation efforts by local firms, along with inadequate female representation at top management level, and less than satisfactory Malay and Indian representation in the senior company hierarchy. Malays make up the majority of the multiracial population that also comprises Chinese, Indian and indigenous peoples.
The exchange urged companies to manifest CSR in their business practices and not to treat CSR initiatives as an add-on list of activities in order to promote business sustainability and add value to the capital markets, as well as to enhance the international reputation of Malaysian companies.
posted by Toyers at
10:11 PM
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