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1、 Procedia - Social and Behavioral Sciences 65 ( 2012 ) 897 – 905 1877-0428 © 2012 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of JIBES University, Jakarta doi: 10.1016/j.sbs
2、pro.2012.11.217 International Congress on Interdisciplinary Business and Social Science 2012(ICIBSoS 2012)Corporate Social Responsibility And Company Performance In The Malaysian ContextSaed Adnan Mustafaa*, Abdul Rahim
3、 Othmana, Selvan PerumalaaCollege of Business, Universiti Utara Malaysia, kedah, Sintok, MalaysiaAbstractThe concept of social responsibility of corporations has engendered considerable interest in Malaysia in recent yea
4、rs. While previous research on the relationship between corporate social responsibility and company performance has largely been based on international data, this paper reviews the relationship between the adoption of
5、corporate social responsibility and the company performance of public listed companies. 200 responses were received from a population that had already working in Malaysian public listed companies. The results derived f
6、rom multi-group structural equation modeling within AMOS 7.0. Furthermore this paper found a significant relationship between CSR and company performance. The findings imply the need for public listed companies, partic
7、ularly main and ACE board, to strategically leverage the effect of CSR on company performance.© 2012 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of JIBES University, JakartaKeyword
8、s: Corporate Social Responsibility, company performance, public listed companies, Malaysia. 1. Introduction Corporate Social Responsibility (CSR) has become a very important addition to businesses and can be described a
9、s the main reason for competition and a company’s ability to survive and it had done the best * Corresponding author. Tel.: +60195173053; E-mail address: said_es@yahoo.com.Available online at www.sciencedirect.com©
10、2012 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of JIBES University, Jakarta899Saed Adnan Mustafa et al. / Procedia - Social and Behavioral Sciences 65 ( 2012 ) 897 – 905 fourth
11、 perspective maintaining that good corporate social performance generates a good corporate reputation, ultimately leading to enhanced firm performance. Empirical evidence for this relationship is scarce, and, in most c
12、ases, circumstantial (Coldwell, 2001). Therefore, this present paper explores the fourth relationship, researching if reputation plays a role as a partial mediator in the CSR-firm performance link. According to the rep
13、utation perspective, CSR has external effects on corporate reputation. The financial benefits may arise from the positive reputation created by corporate involvement in socially responsible causes. Scholars have sugges
14、ted that firms adopting socially responsible actions may develop a more positive reputation, yielding a competitive advantage. Serving the implicit claims of major stakeholders enhances a company’s reputation in a way
15、that has a positive impact on its financial performance; conversely, disappointing these groups may decrease a company’s reputation, which, in turn, results in a negative financial impact. The social impact of stakeho
16、lder theory implies that an external reputation (favorable or unfavorable) develops first, and financial results (favorable or unfavorable) follow. In sum, serving stakeholders’ needs improves the company’s reputation,
17、 which can improve its performance and market position. The present study adopts an alternative approach to generating research questions based on a contingency approach in the relationship between CSR and company perf
18、ormance, since there are potentially many factors that mediate the link between CSR and company performance (Margolis Sin et al., 2005; Olalekan, 2011; Kim, 2001; Nguyen & Leblanc, 2001). Before the questionnaire
19、was finalized, it was pretested so that any weaknesses and problems in the questions, as they relate to the research setting, could be identified. To enable the pretesting, 40 of the top management from 40 different co
20、mpanies were contacted by telephone and 30 of them agreed to participate in the pre-test. The principal researcher then made appointments with them. As an outcome of this process, the questions were modified in order t
21、o better reflect the local cultural situation. A final questionnaire was then prepared for data collection. The measures for CSR in the present paper were adopted from Carroll (1979, 1991). In the present paper CSR con
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