The effect of corporate social responsibility on companies' profitability in Sibu, Sarawak
The research objectives in this study are i) to investigate the implications of corporate social responsibility on profitability of Sibu companies, ii) to discover the nature of CSR activities undertaken by companies in Sibu, iii) to identify the CSR economic drivers those stimulate CSR activitie...
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| Format: | Thesis |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/10367/1/Allen%20Ling%20ft.pdf |
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| Summary: | The research objectives in this study are i) to investigate the implications of corporate
social responsibility on profitability of Sibu companies, ii) to discover the nature of CSR
activities undertaken by companies in Sibu, iii) to identify the CSR economic drivers
those stimulate CSR activities among Sibu companies, iv) to show the factors stimulating
corporate social responsibility practices among Sibu companies, and v) to determine the
effect of CSR reporting and disclosure on the profitabiJity of Sibu companies.) 180
respondents are selected among the companies in Sibu but only 150 questionnaires are
been collected. Four theoretical relationships are developed to examine the relationship
between the related variables. Findings show that I) there is a negative relationsh ip
between CSR and corporate performance under the trade~off hypothesis, 2) there is no
relationship between CSR and firm's profitability under the supply and demand
hypothesis, 3) there is a positive relationship between CSR and firm financial
performance under social impact hypothesis, and 4) there is a negative relationship
between CSR and firm's profitability under theory of stakeholder. CSR includes CSR
activities, factors stimulating CSR, and CSR economic drivers. Regression model is
developed to link CSR elements to corporate profitability. The CSR activities perceived
to be relevant to the companies are corporate philanthropy, caused related marketing and
sponsorship. Besides, the factors and economic drivers will be addressed based on the
four dimensions; employees, environment, community at large and customers . |
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