CSR still wanting

Malaysian plcs generally lag behind international best practices and disclosures in corporate social responsibility (CSR), revealed a pioneer 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.

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 companies achieved the highest score.

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.