History of CSR:
- CSR in Malaysia began in the form of small contributions which was traditionally driven by religions and racial motivations.
- Multinational companies and businesses influenced by the west began to make corporate contributions
- The Malaysian government has gradually increased its focus on CSR, creating frameworks for implementation of CSR initiatives for the country’s businesses
- For example, the CSR Silver Book launched by the government-linked company (GLC) transformation programme, which provides firms with scorecards and guidelines to measure CSR ideas and to measure the effectiveness of corporate CSR policies.
- In the year 2007, it became compulsory for companies listed on Bursa Malaysia to disclose their CSR activities or practices.
- The government has established a fund of RM50 million to promote CSR activities
- Inclusion of CSR in state-owned investment funds is a criterion for future investments.
- Starting in 2008, businesses that demonstrate exceptional CSR practices are recognize by the government and presented with the Prime Minister’s CSR Awards.
- In activities aimed at local communities, initiatives from the corporate sector often bear signs of philanthropy rather than real interaction.
- The Tenth Malaysia Plan (2011–2015) recognizes the importance of public and private partnership (PPP) and how it can contribute to the achievement of development goals. It urges GLCs to integrate and implement CSR policies.
Legal framework and Initiatives:
- Child Labour & Forced Labour
Child labour has been illegal in Malaysia since 1966, but child labour continues to remain a problem. - Labour Law
The Economic Planning Unit and Ministry of Finance set tax incentives and budget allocations for CSR-targeted initiatives. Other than this, there is no official mention of CSR immediately visible in the form of labour law. - Corruption
The Malaysian Anti-corruption Commission is primarily responsible for dealing with corruption issues in Malaysia. Through their efforts, corruption is now reportable through a smartphone app. This reflects the seriousness and prevalence of the issue in Malaysia. - Environment
The Department of Environment (DOE) was established in 1974. Besides this, a number of councils and committee such as the National Economic Consultative Council and the Malaysian Business Council are notable for environmental conservation and development in Malaysia. - CSR Law
There are no laws solely dedicated to CSR in Malaysia.
Key partners:
The Malaysian government has taken charge of CSR, creating a longer history comparative with its neighbours in the region. Although corruption still undermines its efforts, the government may be the best partner for the UNDP.
Good practice:
Khazanah Nasional Bhd is the Government of Malaysia’s strategic investment fund. Khazanah’s vision is to enhance CSR principles by delivering sustainable value through; strategic investments, human and social capital development, and the protection of the natural environment. An example of an initiative by Khazanah includes Yayasan Amir, which provides educational services to schools at primary and secondary level, and across urban and rural areas.
Latest news on CSR:
https://www.nst.com.my/news/nation/2017/11/306311/480-take-part-autism-event
http://www.marketing-interactive.com/mondelez-malaysia-powers-on-csr-initiative-with-joy-schools/
http://www.nationmultimedia.com/detail/Corporate/30332108
References:
https://www.env.go.jp/earth/coop/eco-csrjapan/en/malaysia.html
http://www.sukasociety.org/child-labour-in-malaysia/
http://www.sprm.gov.my/index.php/en/
http://ajbasweb.com/old/ajbas/2011/September-2011/1248-1260.pdf
http://hdr.undp.org/en/countries/profiles/MYS
http://www.socialprogressimperative.org/2016-social-progress-index-scorecard-for-malaysia/
https://data.worldbank.org/indicator/SI.POV.GINI?locations=MY