Corporate Social Responsibility Initiatives in the Malaysian Palm Oil Industry: Managers' Perceptions of the Impact on Non-Financial Performance

Noorhayati, Mansor (2013) Corporate Social Responsibility Initiatives in the Malaysian Palm Oil Industry: Managers' Perceptions of the Impact on Non-Financial Performance. In: International Conference on Social Responsibility, Ethics and Sustainable Business, 01 January 1970, Bournemouth University, United Kingdom.

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Abstract

This study examines the perceptions of Malaysian palm oil managers regarding the impact of implementing various CSR initiatives for stakeholder groups on firms’ nonfinancial performance. The stakeholder groups are investors, customers, suppliers, communities and the environment. The nonfinancial performance is measured by research and development, market development, market size and personnel development. Mailed questionnaires were used and 54 estate managers participated in the study. The results show a relatively moderate level of CSR implementation in the palm oil industry. The mean scores range from the lowest of 3.00 (communities’ protection) to the highest of 3.79 (suppliers’ pricing practices). The study reveals that managers perceived only CSR initiatives toward investors (ß = 0.494, p< 0.00) and communities’ development (β = 0.388, p < 0.00) contribute positively to firm’s non-financial performance. Contrary to expectations, three of the initiatives show negative (insignificant) relationships with the nonfinancial performance. These are initiatives toward employee welfare (β = -0.123), suppliers’ pricing practices (β = -0.158) and communities protection (β = -0.139). The results also indicate that the initiatives toward employees’ development (β = 0.177), customers (β = 0.114) and the environmental (β = 0.136) have no significant impact on the nonfinancial performance. Thus, there is an urgent need for the palm oil industry to review the present CSR initiatives for the stakeholder groups to ensure their effectiveness in achieving company’s goals. At the same time, these initiatives have to be aligned with the industry’s strategic moves to improve the industry’s overall performance and sustainability

Item Type: Conference or Workshop Item (Paper)
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
S Agriculture > S Agriculture (General)
Divisions: Faculty of Business and Management
Depositing User: Muhammad Akmal Azhar
Date Deposited: 20 Oct 2020 07:21
Last Modified: 20 Oct 2020 07:21
URI: http://eprints.unisza.edu.my/id/eprint/263

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