What is Corporate Social Responsibilty?

Environmental Impact Assessment (EIA) was made compulsory for construction companies before they were to be allowed to develop new housing/property areas.

Ministry of Health introduced several laws pertaining to health hazards products, product safety, Discrimination against the handicapped and drug abuse.

Table 1: Non-governmental organizations and raised issues relating CSR

Source: Abdul Rashid (2002), “Managers attitudes towards Corporate Social Responsibility”, Proceeding of Pan Pacific Conference, KL, pp. 218-220  

 

Company’s Attitudes towards CSR

Today’s business competitive environment builds more and more pressure on the managers to adopt all such methods that might ensure achievement of business goals. Values and ethics at this juncture become irrelevant. However, all companies are not alike and many have come forward for the cause of society.

 

But accounting to a survey conducted in 2005, shows that its still have an encouraging trend in the sense that the Malaysian companies have improved their involvement in CSR activities. 87.5 percent of the respondents agreed that their company was involved in CSR activities, a decline in the level of involvement of companies in CSR activities showed in Table 2. The results also indicated that the respondents disagreed considerably on the six negative statements on CSR, and were higher in 1995 than in 2005.

 

Items

2005

1995

Employees’ welfare (facilities & benefits)

91.8

91.8

Responsive to consumer’s complaints

82.9

86.4

Maintaining product/service quality to consumers

76.7

82.7

Ensuring product safety

62.3

64.5

Donation to welfare organizations

60.3

80

Provide contribution for games and sports

35.6

70.9

Contributions to culture and/or literary works

34.9

 

Employment of handicapped individual

32.9

 

Contribution to crime prevention

15.1

 

Contribution for public amenities (e.g. bus stop shades)

19.9

 

Assistance in overcoming problems related to drug abuse and alcoholism

21.2

 

Contribution to educational institutions (other than research grants, e.g. scholarships, bursary to students)

24.7

 

Provide loans for low-income housing

28.1

 

Provide loans to small enterprise

21.9

 

Table 2: Areas of CSR in which Malaysian companies are involved

Source: Md Zabid A. R. (2005), “Executive and management attitudes towards Corporate Social Responsibility in Malaysia”,

 

The researcher of conducting this survey Abdul Rashid M.Z. (2002) suggests that there are more positive attitudes towards CSR in the financial sector than in the telecommunication, manufacturing or construction sector. The financial sector is expected to be more prudent and more conscious of the role of banks in CSR. Abdullah (2001) in his report points out that the differences between the sectors on their priorities towards CSR activities.  

 

In conclusion, Malaysian executives and managers had positive attitudes towards CSR. The extent of their involvement in CSR was lower today; the extent of corporate disclosure on CSR was nevertheless slightly higher than a decade ago.The level of CSR awareness appears to have improved slightly in Malaysia.

 

KFC Towards CSR

The underlying values of KFC’s target audience have changed, although it has been leading global brand for over three

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