The Influence Of Csr Practices On Csr-Hr Capabilities And Organizational Performance Among Malaysian Public Listed Companies
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Date
2018-08
Authors
Muhammad Nazri Abdul Halim
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
The issue of social responsibility and how HR plays an important role in
executing CSR have become prevalent in the Malaysian government agenda. The
combination of HRM in CSR activities is important to be seen as a pioneer and major
prerequisite for the realization of national mission and improve the welfare of the
society. Corporate bodies should take note that CSR is not just helping and giving back
to employees only but covers all responsibilities including community life around.
Bursa Malaysia commissioned CSR Asia conducted a CSR survey and analysed a
random sample of company responses to give an overall picture of where listed
companies in 2007 found that companies received low scores and lag far behind,
lacking awareness and understanding of CSR concepts as well as CSR issues relevant
to their operations. This study aims at investigating the contribution of the HRM
capabilities in driving CSR practices among public listed companies (PLC) in
Malaysia towards organizational performance. To achieve the objectives, five key
research questions of this study attempt to answer. This study will apply two types of
data analysis software namely Partial Least Squares (PLS) with SmartPLS M3 2.0
(2010) and Statistical Package for Social Sciences (SPSS) version 22. Therefore, the
sampling frame of this study is derived from the list of 930 public listed companies in
Bursa Malaysia. From the analysis, 17 hypotheses that have been tested showed that 9
hypotheses out of 17 hypotheses supported. For analysis of Importance-Performance
Matrix (IPMA) showed that three highest performances belong to Customer responsibilities, CSR Statement and Environment Responsibilities. However, the
variables with the highest importance for Organizational performance adaptations are
different namely CSR-HR Capabilities, Environment Responsibilities and CSR
Vision. The findings also indicated that CSR-HR capabilities mediate the relationship
between CSR Policies, CSR Orientation and Organizational Performance. Two
dimension of CSR policies namely CSR Vision and Equal employment opportunity
are found to have significant relationship but for Code of Ethics and CSR Statement
are not significant. For CSR orientation, two dimension also found the relationship
namely Environmental Responsibilities and Community Responsibilities but for
Employee responsibilities and Customer responsibilities are not significant. This study
makes both theoretical and practical contributions especially in identifying the
relationship between CSR practices, CSR-HR capabilities and organizational
performance.
Description
Keywords
Corporations , Personnel management