Research

Maria Kontesa · Rayenda Khresna Brahmana · Gesti Memarista ·Jurnal Ekonomi Malaysia ·2020

This study aims to examine the role of product market competition on Corporate Social Responsibility (CSR) by engaging altruism and utilitarianism views. Using dynamic Generalized Method of Moment panel regression for 524 Malaysian non-financial industry listed companies from 2010 to 2016, we find that firms in a more competitive environments increase their CSR activities. We interpret these results as evidence that CSR is strategically chosen by firms not for the societal benefits, but more on business as usual; a support for utilitarianism view, i.e profit maximizations. It explains the rationale that CSR activities are less employed in a more monopolistic or oligarchic industry. Practically, this study suggests that the CSR activities are forced by market competition. Firms in a more competitive market need CSR as their non-market strategies.

Hong Kay Tze · Ng Siew Imm · Ho Jo Ann · Tan Houng Chien · Lim Chui Seong ·International Journal of Economics and Management ·2021 ·JEL: M14, M30, M31

It is commonly accepted that positive corporate social responsibility (CSR) image brings desirable outcomes, for instance, brand loyalty, improved brand image, enhanced store image, as well as increased visit intention; suggesting there are various direct outcomes of CSR image. Underpinned by the Persuasion Knowledge Model (PKM), this paper proposes that these outcomes are presented in a sequential manner, where there is a core mechanism that relates CSR image to store image and brand awareness, and in turn associate with consumers’ visit intention. A quantitative research methodology has been used where a structured questionnaire was distributed to consumers in selected states in Malaysia using the mall intercept method. Structural equation modelling was applied to examine the proposed model. The discoveries of the current study offer the observed evidence for the correlation between perceived CSR image and hypermarket visit intention, mediated by overall store image and brand awareness. The study emphasises a prominent role of CSR schemes, bringing together the overall hypermarket store image and the hypermarket brand awareness, which will enable hypermarket management to further boost visit intention from consumers

Woei Chyuan Wong · Abd Halim Ahmad · Shamsul Bahrain Mohamed-Arshad · Sabariah Nordin · Azira Abdul Adzis ·Malaysian Journal of Economic Studies ·2022 ·JEL: G32

This paper examines the determinants of Malaysian listed firms’ environmental, social and governance (ESG) performance during the period 2005–2018. We focus on individual firms’ continuous efforts to improve their ESG scores once they are ESG rated. Panel fixed effect results reveal that the number of years since a firm was first included in Bloomberg’s ESG score is positive and significantly related to its ESG performance. We interpret this as evidence of firms’ deliberate efforts to improve their ESG scores once they fall under the radar of a third-party ESG rating agency. This finding underscores the importance of third-party rating agency in fostering greater corporate sustainability. We contribute to the literature that posits that ESG third-party rating agency can lead to higher level of ESG practices of the rated firms.