Report: Define the concept of corporate social responsibility and evaluate the

four different responsibilities commonly used by corporations. Select one

company which has adopted such a strategy.

Corporate social responsibility (CSR) is a voluntary choice for companies to

improve the economy, environment, and communities. It can take four forms:
environmental initiatives, charity work, ethical labor practices, and volunteer work.
Companies can embrace CSR by being environmentally friendly and eco-conscious,
fostering a diverse and inclusive work environment, making ethical business
decisions, treating employees with respect, and giving back to the community.

A company must integrate its CSR practices into its culture and operations to
ensure they are authentic. This can be done internally or by a third party. Companies
should consider their values, business mission and core issues to determine which
initiatives align best with their goals and culture.

CSR practices are beneficial to companies for a variety of reasons, including

increasing brand value and holding corporations accountable for their beliefs,
practices, and profits. Companies must demonstrate to the public that they are a force
for good in order to stand out among the competition.

Values, reputation, and social and environmental activism are key to attracting
new customers, and Millennial employees are drawn to businesses that prioritize
people, planet, and revenue.

Developing a CSR program and initiatives will enhance a company's appeal to

current and potential investors. Taking CSR seriously signals to both investors and
partners that it's interested in long-term as well as short-term gain. ESG metrics help
external analysts quantify the company's social efforts and become a key factor for
investors' consideration and continued interest.

Four types of corporate responsibility in business can practice.

Companies recognize the importance of socially responsible efforts for their

customers, employees, and stakeholders by focusing on four broad CSR categories.
1. Environmental efforts: Environmental CSR is a company's efforts to reduce its
impact on the environment and increase sustainability.CSR activities relating to the
environment usually include:

 Recycling
 Waste reduction
 Reducing water consumption
 Reducing energy use
 Reducing plastic consumption
 Using renewable energy providers
 Reducing GHG emissions
 Adopting sustainable transport policies

Organizations can improve environmental CSR performance by focusing on areas

where their impact is disproportionately negative.

2. Philanthropy: Companies can engage in social responsibility by donating money,

products, and services to nonprofits. Small businesses can contribute, but larger
companies have the resources to make a difference. Consider donating money, time,
or products based on their specific needs.

3. Ethical labor practices involve providing workers with legal, fair, and decent
treatment. The minimum employment act or standard must be met for an employer to
be considered ethical, but organizations can go beyond this by paying the living wage
or training and developing employees. It is widely believed that ethical treatment
requires organizations to go beyond the legal minimum. Paying the living wage or
training and developing your employees are examples of this.

4. Volunteering: Corporate volunteerism initiatives provide employees with

resources to volunteer their time and expertise to nonprofits and charities, showing
concern and support for certain issues.

Building a socially responsible business model

When identifying and launching a CSR initiative, involve employees in the

decision-making process and create an internal team to identify organizations or
causes related to the business or that employees feel strongly about. Involving the
employees can increase engagement and success, bring clarity and assurance to the
team, and be vocal to let consumers know what the company is doing to be socially
conscious.

Becoming a socially responsible business can be simple, but there are a few caveats.

1. Don’t choose unrelated initiatives. Avoid charitable efforts that are not related to
your business focus or violate ethical standards. Instead, find a nonprofit that your
company believes in and invest in it.

2. Don’t use CSR as a marketing scheme. Adopt socially responsible business

practices over time, as employees and consumers respond positively to companies that
embrace long-term social responsibility.

3. Don’t wait for the industry to catch up. Adopt socially responsible norms early
on to set the bar and refine your process. [Related read: 14 Examples of Socially
Responsible Businesses] CSR initiatives can have a positive impact on both
consumers and employees, making a real difference in the world.

Local Legal Requirements and Guides

There is no statutory requirement for public listed companies in Malaysia to

disclose social information to the public, but a number of initiatives have encouraged
corporations to report. In 1990, the KLSE, MIA, MIM, MICPA, and NACRA
launched the National Annual Corporate Report Awards (NACRA) to promote and
enhance presentation and reporting of financial and other information. The Kuala
Lumpur Stock Exchange Corporate Awards (KLSECA) was initiated in 2010 to
encourage companies to demonstrate high standards of corporate governance,
disclosure and transparency. However, there is a general sense that corporations in
Malaysia are reluctant to report.

SSM has issued guidelines on corporate social responsibility.

BEST BUSINESS PRACTICE CIRCULAR 5/2013 by SSM Malaysia

OBJECTIVES
1. The objectives of this Best Business Practice Circular 5/2013 (BBPC) are:

 Corporate responsibility disclosure is important to encourage innovation and

improve value.
 Raising awareness and understanding of the new framework for corporate
responsibility disclosure under the Companies Act.
 Companies and businesses need an overview of available approaches, tools and
resources to ensure accurate and reliable corporate responsibility disclosure.

The Companies Commission of Malaysia (SSM) defines corporate responsibility

as "the commitment by corporations and businesses towards achieving sustainability
in the social, economic and environmental conditions in furtherance to the pursuit of
profitability". The CR Agenda sets out SSM's strategic framework and approach in
relation to corporate responsibility to inculcate a culture among Malaysian corporate
players that values and recognizes that all corporate responsibility activities can create
premium for corporations and businesses.

The CR Agenda does not place companies and businesses under an obligation to
work on specific corporate responsibility activities, but instead promotes that they
should be able to do so without compromising their business focus. It also encourages
companies to be more transparent about their work on corporate responsibility and
communicate their efforts to ensure they reap the optimum benefits.

CR is a term used to refer to corporate social responsibility, sustainability and

corporate citizenship.

Different organisations may use different terminology depending on their

corporate history, geographic location, form and format, and target
audience/stakeholder expectations.

10 Socially Responsible Malaysian Companies

1. Sime Darby Berhad

Sime Darby began as a small British firm in 1910 and has since grown to over 25
countries. It has launched a subsidiary, Yayasan Sime Darby, to carry out
sustainability work and developed an in-house Child Protection Policy to address the
well-being of kids.

2. Axiata Group Berhad

 Axiata is a telecommunications titan in Asian countries with 290 million
subscribers and RM19.9 billion in 2015. It supports its IT CSR programs Kampung
Tanpa Wayar (KTW) and Pusat Internet Malaysia, and was awarded the third place
under the Edge Billion Ringgit Club Corporate Awards 2014 for CSR initiatives.

3. CIMB Group Holdings Berhad

CIMB is one of the biggest investment banks in Asia Pacific, providing services
such as corporate banking, consumer banking, and strategic investments in Malaysia,
Thailand, and Indonesia. Their CSR division, CIMB Foundation, has contributed
RM76 million to community development, earning the first position in 2013 in The
Edge Billion Ringgit Club Corporate Awards.

4. Malayan Banking Berhad

Malayan Banking Berhad, also known as Maybank, is the fifth largest Islamic
bank in the world and has launched the Maybank Foundation to improve the lives of
communities. They have won several awards for their CSR programs, including the
Best Corporate Social Responsibility Reporting Award (Platinum) at the National
Annual Corporate Reporting Awards (NACRA) 2015.

5. Carlsberg Brewery Malaysia Berhad

Carlsberg is a multinational beverage company known for its stout, beer

manufacturing and other malt-related beverages. They have international brands such
as Asahi Super Dry, Hoegaarden, SKOL, Somersby Cider and Kronenbourg 1664.
They are also recognized for their CSR activities, winning the Edge Billion Ringgit
Club Corporate Awards 2014 and raising RM469 million for 690 schools through 'I
Love Chinese Education East Malaysia' and 'Top Ten Charity Campaign' charity
concerts.

6. Allianz Malaysia Berhad

Allianz is a leading insurance company in Malaysia with a broad portfolio of

services in personal lines, motor insurance, large industrial risks and small to medium
enterprise businesses. Through their CSR Programs Allianz4Good, 417 volunteers
dedicated 3,050 hours to reach 17,600 people in 2014, winning the Best CSR
Initiatives in The Edge Billion Ringgit Club Corporate Awards 2014.
7. DiGi.Com Berhad

The Telenor Group was one of Forbes' 100 World's Most Innovative Companies
in 2014, known for creating social-economic developments and assisting companies
with technology advancement. DIGI's program helped 38,098 school kids and 130
ICT teachers understand online safety methods.

8. RHB Capital Berhad

RHB Capital Berhad is Malaysia's fourth-biggest financial institution and is

known for its CSR programs, such as the RHB-The Star Mighty Minds National
Challenge, Students Educational Enrichment Development Leadership Programme,
and Spell-It-Right Challenge. Additionally, the Jom Sihat and the RHB TrEx Broga
Challenge encourages healthy living and environmental awareness. The company's
efforts have been recognized with awards such as The Asset's Excellence in
Management and Corporate Governance Benchmarking Award, the Asia Corporate
Excellence & Sustainability Awards 2015, and the ASEAN Corporate Governance
Awards for Top 50 ASEAN Publicly Listed Companies.

9. Petroliam Nasional Berhad

Petronas is an oil and gas company founded in 1974 and owned by the Malaysian
Government. It is in the Fortune Global 500's largest corporations and is known for its
CSR activities, such as supporting health and safety, environmental conservation, and
promoting education. It also sponsors community-based activities such as science and
exhibitions, and drug prevention.

10. Fraser & Neave Holdings Berhad

F&N is a household name in Malaysia with a turnover of RM4 billion annually

and has been named as the caring corporation due to its CSR activities. 100 Plus has
been the Official Isotonic Drink of the Badminton Association of Malaysia (BAM)
and the ELITE programme collaborates with Kassim Chin Humanity Foundation
(KCHF) to provide 600 poor households with tuition fees. Businesses of all sizes can
invest in ethical behavior and sustainable practices to improve their brand value, build
customer trust, grow their company, and improve the bottom line.