Analyzing CSR Impact on Malaysian Construction Company Performance

This report examines the significance of Corporate Social Responsibility (CSR) within the Malaysian construction industry. It highlights the growing importance of CSR as a strategic tool for organizational development and achieving business objectives, particularly following the Malaysian government's 2006 directive for Public Listed Companies (PLCs) to disclose CSR activities. The report emphasizes the positive impacts of CSR on financial performance, market goodwill, and stakeholder relationships. It analyzes the relationship between various CSR activities and the performance of companies in the Malaysian construction sector, aiming to identify factors that enhance financial outcomes. The study references existing research to support its analysis, focusing on the practical application and impact of CSR strategies within the specific context of the Malaysian construction industry.

Running head: CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility
Name of the Student
Name of the University
Author’s Note

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Introduction
In today’s business environment, Corporate Social Responsibility (CSR) is considered as
one of the major factors. In the recent years, organizational managers consider CSR as a crucial
factor for the development of organizational strategies for the development of the corporation
and for the achievement of organization goals and objectives. Thus, CSR can be considered as an
effective framework for the development of strategic framework and business relationship with
various stakeholders of the companies (Tai & Chuang, 2014). Most of the companies all over the
world are promoting CSR in the companies as it is a crucial mean for reduction of poverty,
hunger and disease while bring improvements in the aspects like education, values, equality and
economic success. For this reason, countries are implementing laws that require the business
organizations to publish reports based on their exposures to environmental, social and
governmental risks and their strategies to address them (Saeidi et al., 2015). Thus, it can be said
that business organizations can improve their performance with the help of effective CSR
strategies. With the assistance of effective CSR strategies, business organizations can increase
goodwill in the market and this process creates positive impacts on the revenue and profitability
of the companies (Suliman, Al-Khatib & Thomas, 2016). Thus, based on the above discussion, it
can be said that sound financial as well as sustainable performance of the organizations can be
achieved with the assistance of appropriate CSR activities that contributes towards the economic
development as well.
In case of Malaysia, various activities of CSR have been attracting the attention of many
of the industries after the announcement of Malaysian government regarding CSR in the year
2006. In this announcement, the Malaysian government directed all the Malaysian Public Listed

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Companies (PLC) to publish the details of their organizational CSR activities. Since that
announcement, it has become mandatory for the Malaysian companies to take the CSR more
seriously. After that, it has been seen that almost all of the companies under every industry have
been publishing their CSR report on yearly basis. One of such industry is the Malaysian
Construction industry. The developed CSR framework of Malaysia has been helping the
construction companies in Malaysia in the identification of major CSR activities in order to
cover all the areas of CSR (Flammer, 2015). It has been observed that CSR has become a
popular topic for the Malaysian construction companies. It has been seen that the adoption of
effective CSR strategies have been majorly helpful for the construction companies of Malaysia.
In this context, it needs to be mentioned that there is many studies conducted that attempt to
establish the relationship between various CSR activities and performance of the companies.
Thus, this research takes an honest attempt to analyze and evaluate the relationship between
different CSR activities and the performance of the companies of the Malaysian construction
industry. Apart from this, another major aim of this research is to analyze various components
and factors of CSR that can increase the financial performance of the companies.

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References
Flammer, C. (2015). Does corporate social responsibility lead to superior financial performance?
A regression discontinuity approach. Management Science, 61(11), 2549-2568.
Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate
social responsibility contribute to firm financial performance? The mediating role of
competitive advantage, reputation, and customer satisfaction. Journal of Business
Research, 68(2), 341-350.
Suliman, A. M., Al-Khatib, H. T., & Thomas, S. E. (2016). Corporate Social
Responsibility. Corporate Social Performance: Reflecting on the Past and Investing in
the Future, 15.
Tai, F. M., & Chuang, S. H. (2014). Corporate social responsibility. Ibusiness, 6(03), 117.