KUALA LUMPUR: Corporate social responsibility (CSR) should become a core component in corporate strategy, said Bursa Malaysia Bhd chief executive officer Datuk Yusli Mohamed Yusoff.
Yusli said CSR, which covers a wide spectrum of issues such as business ethics and corporate governance, was beginning to have a profound effect on the conduct of businesses globally.
“We are seeing many companies actively pursuing CSR initiatives as they believe in the good value that CSR brings such as the ability to attract quality investors,” he said.
Yusli said this at the Association of Chartered Accountants (ACCA) Malaysia Environmental and Social Reporting Awards (MESRA) 2006 presentation yesterday.
He said effective adoption of CSR had twin effects of improving short- and long-term corporate performance.
“Companies that have embraced CSR have found advantages in, among other things, improved financial performance, enhanced reputations, increased ability to attract and retain quality workforce, and more effective risk management,” he said.
Yusli said the National Integrity Plan, Ninth Malaysia Plan, Capital Market Master Plan and the publications for government-linked companies' transformation programme were aspects of CSR that the “Government wants to see put into action”.
He also said Bursa had introduced a CSR framework last year to guide public-listed companies in adopting CSR.
“Soon, we will institute initiatives designed to encourage better CSR practices among PLCs and more importantly, guide them to achieve better CSR performance,“ he said.
Sony EMCS (M) Sdn Bhd won the Best Environmental Report award while British American Tobacco (M) Bhd won the Best Social Report award.
Kualiti Alam Sdn Bhd and Tex Cycle Sdn Bhd were recognised for being first-timers in the reporting of environmental and social performances while Mercy Malaysia received the Special Mention – Social Reporting by an NGO award.
ACCA MESRA 2006 received 61 entries – 16 for environmental reporting and 45 for social reporting. The awards were introduced in 2002 to encourage and reward voluntary CSR reporting among local companies.
Did you find this article insightful?