CSR is more than philanthropy says Zarinah

Translate ideas into business strategies

KUALA LUMPUR: Corporate social responsibility (CSR) initiatives are not only about philanthropy but translating these ideas into practical business strategies. 

Securities Commission chairman Datuk Zarinah Anwar said Malaysian firms were at different levels of development and achievement in implementing CSR-driven efforts. 

“It is not about donating money, but more importantly it is about integrating social and ethical practices into business strategies,” she told reporters after delivering the keynote address at the UNDP/ICR Malaysia CSR Conference yesterday. 

She said Khazanah Nasional Bhd’s Silver Book programme was an example that firms could adopt in their own business practices. 

To a question, she said Malaysia’s Islamic funds had a lot in common with socially responsible funds, which were an important aspect in promoting CSR among investors. 

Datuk Zarinah Anwar

Earlier in her speech, she said over the last few years, there had been a growing inclination towards ethically or socially responsible investments. 

“In Australia, managed socially responsible investment portfolios grew by 56% during the 2006 financial year. 

“In Europe, there are 388 green, social and ethical funds as at June 30, 2006 compared with 280 funds in 2001,” she said. 

She said the availability of social and environmental reporting indices such as the Dow Jones Sustainability Index or ACCA’s Malaysian Environmental and Social Reporting Awards allowed investors to focus their investment strategies on benefits of socially and environmentally responsible investing. 

Later, at a press conference, Institute of Corporate Responsibility Malaysia (ICRM) secretary Tay Kay Luan said CSR awareness among local firms had increased over the year, but at different levels. 

“Some companies have a very elementary understanding of corporate governance and ethical standards,” he said. 

Tay said ICRM would play a role in influencing and educating the business community with the best practices and international standards to integrate CSR ideas into their businesses. 

MAS Capital Pvt Ltd corporate branding and strategic CR director Ravi Fernando said Malaysia was poised to lead the way for firms to set CSR as an integral part of their businesses. 

He said Malaysia was “doing better than other countries” in the region by initiating CSR reporting amongst firms and with regulatory bodies such as Bursa Malaysia setting up CSR framework and the launch of the Silver Book programme.

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