Csr of the Nglc
(a) Discuss on the importance of corporate social responsibility to business organisations. (20marks)
The CSR activities will bring some benefits. Firstly, it would enhance the organization’s credibility and reputation. As for risk management, modern organizations implement risk management strategies to decrease or even eliminate the risk posed on the organization by a variety of practices associated to several potential threats.
Organizations that have made strong efforts over the years to build a good reputation and have spent a lot of money to maintain it through product development and customer loyalty strategies. However, it may be ruined by corruption scandal such as Enron Scandal or environmental accidents. Such incidents draw the attention of the media and may cause irrevocable damage to the reputation of a firm. The only way to anticipate such events is to embed social responsibility into organizational culture in order to offset such risks. Secondly, product differentiation, organizations that wants to remain competitive and viable need to offer differentiated products. Through product differentiation, organizations aim at achieving a competitive advantage by increasing the perceived value of their products relative to the perceived value of the products of their competitors.
Particularly, for organizations that implement socially responsible policies, product differentiation can satisfy the unmet needs of consumers offering both financial and business benefits to the firm. They would experience higher sales growth than firms that sell conventional products, and at a higher price.
Besides, firms that offer unique value propositions to consumers differentiate their products in consumers ' minds and contribute to building customer loyalty based solely on ethical values. Therefore, in the context of corporate social responsibility, organizations develop new products aiming, not only to become more competitive, but also to make a greater
The CSR activities will bring some benefits. Firstly, it would enhance the organization’s credibility and reputation. As for risk management, modern organizations implement risk management strategies to decrease or even eliminate the risk posed on the organization by a variety of practices associated to several potential threats.
Organizations that have made strong efforts over the years to build a good reputation and have spent a lot of money to maintain it through product development and customer loyalty strategies. However, it may be ruined by corruption scandal such as Enron Scandal or environmental accidents. Such incidents draw the attention of the media and may cause irrevocable damage to the reputation of a firm. The only way to anticipate such events is to embed social responsibility into organizational culture in order to offset such risks. Secondly, product differentiation, organizations that wants to remain competitive and viable need to offer differentiated products. Through product differentiation, organizations aim at achieving a competitive advantage by increasing the perceived value of their products relative to the perceived value of the products of their competitors.
Particularly, for organizations that implement socially responsible policies, product differentiation can satisfy the unmet needs of consumers offering both financial and business benefits to the firm. They would experience higher sales growth than firms that sell conventional products, and at a higher price.
Besides, firms that offer unique value propositions to consumers differentiate their products in consumers ' minds and contribute to building customer loyalty based solely on ethical values. Therefore, in the context of corporate social responsibility, organizations develop new products aiming, not only to become more competitive, but also to make a greater
References: Hasnah Haron, Sofri Yahya, Manasseh,S & Ishak Ismail. (2006). LEVEL OF CORPORATE SOCIAL DISCLOSURE IN MALAYSIA Malaysia Progress and Prospects. Retrieved November 1, 2012, from http://search.proquest.com.libezp.utar.edu.my/docview/211948022/13A5E51A05818D8A49F/1?accountid=50207 Manasseh,S. (2004). STUDY ON THE LEVEL OF CORPORATE SOCIAL DISCLOSURE PRACTICES IN MALAYSIA influence on corporate social reporting: The case of Malaysia. Retrieved November 3, 2012, from http://search.proquest.com.libezp.utar.edu.my/docview/274717633/13A5E56C6BECA2C4D9/1?accountid=50207 Wan Abd Rahman, N Al-Haj. (2011). Retrieved November 6, 2012, from http://search.proquest.com.libezp.utar.edu.my/docview/1012156862/13A5E63566C1472A928/1?accountid=50207 Mohd Ghazali, N disclosure: some Malaysian evidence. Retrieved November 3, 2012, from http://search.proquest.com.libezp.utar.edu.my/docview/205162885/13A5E65FBF3359EE48A/1?accountid=50207 Faizah Darus, Arshad, R, Suaini Othman & Jusoff, K. (2009). Influence of Institutional Pressure and Ownership Structure on Corporate Social Responsibility Disclosure Chan,S, Ang, G. S., Chan, P. L., Maurice O.A. Okoth & Ng, B.F. (2009). CORPORATE SOCIAL RESPONSIBILITY REPORTING IN MALAYSIA: AN ANALYSIS OF WEBSITE REPORTING OF SECOND BOARD COMPANIES LISTED IN BURSA MALAYSIA Bala Ramasamy & Hung, W. T. (2004). A Comparative Analysis of Corporate Social Responsibility Awareness: Malaysian and Singaporean Firms UOA Development Bhd.（2011）. Annual report. Retrieved October 30, 2012, from http://www.uoa.com.my/pdf/UOA%20Ltd%20Annual%20Report%202011.pdf UOA Development Bhd. （2011）. Annual report. Retrieved October 30, 2012, from http://announcements.bursamalaysia.com/EDMS/subweb.nsf/7f04516f8098680348256c6f0017a6bf/82ac80b98d5d361b482579f7003437f2/$FILE/UOADEV-Page%2012%20to%20ProxyForm%20(1.6MB).pdf UOA Development Bhd.（2008）. Annual report. Retrieved October 30, 2012, from http://www.uoa.com.my/pdf/UOA%20Ltd%20Annual%20Report%202008.pdf UOA Development Bhd.（2009）. Annual report. Retrieved October 30, 2012, from http://www.uoa.com.my/pdf/UOA%20Ltd%20Annual%20Report%202009.pdf UOA Development Bhd.（2010）. Annual report. Retrieved October 30, 2012, from http://www.uoa.com.my/pdf/UOA%20Ltd%20Annual%20Report%202010.pdf Alliance Financial Group Bhd.（2011）. Annual report. Retrieved October 30, 2012,from http://announcements.bursamalaysia.com/EDMS/subweb.nsf/7f04516f8098680348256c6f0017a6bf/82b9b066375ba732482578c0000f8d46/$FILE/AFG-AnnualReport2011%20(2.5MB).pdf Alliance Financial Group Bhd.（2010）. Annual report. Retrieved October 30, 2012,from Alliance Financial Group Bhd.（2008）. Annual report. Retrieved October 30, 2012,from KLCC Property Holding Bhd.（2009）. Annual report. Retrieved October 30, 2012,from http://announcements.bursamalaysia.com/EDMS/subweb.nsf/7f04516f8098680348256c6f0017a6bf/ee06eadeb9ba9c93482575cf002fa38f/$FILE/KLCCP-AnnualReport2009%20(971KB).pdf KLCC Property Holding Bhd.（2010）. Annual report. Retrieved October 30, 2012, from http://announcements.bursamalaysia.com/EDMS/subweb.nsf/7f04516f8098680348256c6f0017a6bf/9f62b8b4d144af68482577490033f499/$FILE/KLCCP-AnnualReport2010%20(1.2MB).pdf KLCC Property Holding Bhd.（2011）. Annual report. Retrieved October 30, 2012, from http://announcements.bursamalaysia.com/EDMS/subweb.nsf/7f04516f8098680348256c6f0017a6bf/54462989e5a52b5548257a1400172b1e/$FILE/KLCCP-AnnualReport2011%20(983KB).pdf 10 ways to improve sustainability report. (2011, March). Retrieved November 8, 2012, from http://www.canadianmanufacturing.com/general/10-ways-to-improve-sustainability-reports-26447 Landrum, N. E. & Daily, C. M. (2012). Corporate Accountability: A Path-Goal Perspective Jones, A & Jonas, G. A. (2011). Corporate Social Responsibility Reporting: The Growing [ 1 ]. (Bala Ramasamy & Hung, 2004, p.110) [ 2 ] [ 3 ]. (Hasnah Haron, Sofri Yahya, Manasseh & Ishak Ismail, 2006, p.161) [ 4 ] [ 5 ]. (Hasnah Haron, Sofri Yahya, Manasseh & Ishak Ismail, 2006, p.160) [ 6 ] [ 7 ]. (Hasnah Haron, Sofri Yahya, Manasseh & Ishak Ismail, 2006, p.174) [ 8 ] [ 9 ]. (Hasnah Haron, Sofri Yahya, Manasseh & Ishak Ismail, 2006, p.174) [ 10 ] [ 11 ]. (Hasnah Haron, Sofri Yahya, Manasseh & Ishak Ismail, 2006, p.175) [ 12 ] [ 13 ]. (Hasnah Haron, Sofri Yahya, Manasseh & Ishak Ismail, 2006, p.177) [ 14 ]