The relationship between corporate social responsibility practics and firm performance of domestic banks in Malaysia

The focus on corporate social responsibility (CSR) has been active in the public attention within Malaysia for the past ten years, and as such has become a strength in many corporations’ public relations as what demonstrate in the bank's campaign strategy. In fact, the importance of CSR initiat...

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Main Authors: Santhirasegar, Janartini, Ramakrishnan, Suresh, Hishan, Sanil S., Mohd. Jamal, Noriza
Format: Article
Published: Science Publishing Corporation Inc. 2018
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Online Access:http://eprints.utm.my/id/eprint/84872/
http://dx.doi.org/10.14419/ijet.v7i2.29.13797
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spelling my.utm.848722020-02-29T12:39:53Z http://eprints.utm.my/id/eprint/84872/ The relationship between corporate social responsibility practics and firm performance of domestic banks in Malaysia Santhirasegar, Janartini Ramakrishnan, Suresh Hishan, Sanil S. Mohd. Jamal, Noriza HD28 Management. Industrial Management The focus on corporate social responsibility (CSR) has been active in the public attention within Malaysia for the past ten years, and as such has become a strength in many corporations’ public relations as what demonstrate in the bank's campaign strategy. In fact, the importance of CSR initiatives may have a direct impact on the success of the business as many organizations worldwide have come under pressure to meet the terms of the international CSR standards and practices. Therefore, this study seeks to measure the level of CSR disclosure by domestic banks in Malaysia from the year 2008 until 2015. This study used content analysis method to identify the CSR activities and disclosure score that was obtained from annual reports and sustainability reports for the commercial banks. Overall, the findings indicate that commercial banks in Malaysia promotes important roles in community and philanthropy. Additionally, this study will also examine the relationship between CSR and firm performance of in commercial banks Malaysia from the year 2008 until 2015. This study used correlation analysis to analyze the relationship between dependent variables, namely return on assets, return on equity and earnings per share, and independent variables which is the CSR disclosure. The overall sample results revealed only return on asset and return on equity has significant relationship with CSR. Thus, a greater profitability can be achieved through appropriate CSR practice. CSR reporting should not be a practice only for special or infrequent events rather it should be a continuous process, and banks need to incorporate CSR reporting more. Science Publishing Corporation Inc. 2018 Article PeerReviewed Santhirasegar, Janartini and Ramakrishnan, Suresh and Hishan, Sanil S. and Mohd. Jamal, Noriza (2018) The relationship between corporate social responsibility practics and firm performance of domestic banks in Malaysia. International Journal of Engineering & Technology, 7 (2.29). pp. 451-456. ISSN 2227-524X http://dx.doi.org/10.14419/ijet.v7i2.29.13797 DOI:10.14419/ijet.v7i2.29.13797
institution Universiti Teknologi Malaysia
building UTM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Malaysia
content_source UTM Institutional Repository
url_provider http://eprints.utm.my/
topic HD28 Management. Industrial Management
spellingShingle HD28 Management. Industrial Management
Santhirasegar, Janartini
Ramakrishnan, Suresh
Hishan, Sanil S.
Mohd. Jamal, Noriza
The relationship between corporate social responsibility practics and firm performance of domestic banks in Malaysia
description The focus on corporate social responsibility (CSR) has been active in the public attention within Malaysia for the past ten years, and as such has become a strength in many corporations’ public relations as what demonstrate in the bank's campaign strategy. In fact, the importance of CSR initiatives may have a direct impact on the success of the business as many organizations worldwide have come under pressure to meet the terms of the international CSR standards and practices. Therefore, this study seeks to measure the level of CSR disclosure by domestic banks in Malaysia from the year 2008 until 2015. This study used content analysis method to identify the CSR activities and disclosure score that was obtained from annual reports and sustainability reports for the commercial banks. Overall, the findings indicate that commercial banks in Malaysia promotes important roles in community and philanthropy. Additionally, this study will also examine the relationship between CSR and firm performance of in commercial banks Malaysia from the year 2008 until 2015. This study used correlation analysis to analyze the relationship between dependent variables, namely return on assets, return on equity and earnings per share, and independent variables which is the CSR disclosure. The overall sample results revealed only return on asset and return on equity has significant relationship with CSR. Thus, a greater profitability can be achieved through appropriate CSR practice. CSR reporting should not be a practice only for special or infrequent events rather it should be a continuous process, and banks need to incorporate CSR reporting more.
format Article
author Santhirasegar, Janartini
Ramakrishnan, Suresh
Hishan, Sanil S.
Mohd. Jamal, Noriza
author_facet Santhirasegar, Janartini
Ramakrishnan, Suresh
Hishan, Sanil S.
Mohd. Jamal, Noriza
author_sort Santhirasegar, Janartini
title The relationship between corporate social responsibility practics and firm performance of domestic banks in Malaysia
title_short The relationship between corporate social responsibility practics and firm performance of domestic banks in Malaysia
title_full The relationship between corporate social responsibility practics and firm performance of domestic banks in Malaysia
title_fullStr The relationship between corporate social responsibility practics and firm performance of domestic banks in Malaysia
title_full_unstemmed The relationship between corporate social responsibility practics and firm performance of domestic banks in Malaysia
title_sort relationship between corporate social responsibility practics and firm performance of domestic banks in malaysia
publisher Science Publishing Corporation Inc.
publishDate 2018
url http://eprints.utm.my/id/eprint/84872/
http://dx.doi.org/10.14419/ijet.v7i2.29.13797
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score 13.211869