From GLCs to SMEs high performance SMEs via corporate social responsibility: the Malaysian perspectives

• Main Authors: Abd Ghadas, Zuhairah Ariff, Hassan, Halyani
• Format: Article
• Language: English
• Published: Lexis Nexis 2008
• Subjects: HB3711 Business cycles. Economic fluctuations; K Law (General)
• Online Access: http://irep.iium.edu.my/66553/1/66553_From%20GLCs%20to%20SMEs%20high%20performance%20SMEs.PDF; http://irep.iium.edu.my/66553/; http://vodppl.upm.edu.my/uploads/docs/dce5634_1298966599.%20HIGH%20PERFORMANCE%20SMEs%20VIA%20CSR%20The%20Malaysian%20Perspectives.pdf

Corporate governance is not an abstract goal, but exists mainly to serve corporate purposes by providing a structure within which stockholders, directors and management can pursue most effectively the objectives of the corporation. Among the major corporate governance policies that attract discussion is corporate social responsibility ('CSR'). Corporate social responsibility is usually regarded as philanthropy. A company with social responsibility will anticipate the needs of society as well as solving social problems. For large companies such as public listed and government link companies ('GLCs'), goodwill and reputation are vital for the business. On the other hand, in small and medium businesses, their main objective is profit maximisation and as such, the CSR agenda is not likely to be included in the business plan. It is perceived that the implementation and enforcement of CSR in SMEs is equally important as in large companies. This paper aims to discuss how CSR plays a role in business sustainability for SMEs. This paper also makes special reference to the strategies of the Malaysian government's plan to transform GLCs into high performing entities by 2020 and discusses how these strategies could be applied to Malaysian SMEs in producing high performance SMEs.