CORPORATE SOCIAL RESPONSIBILITY (CSR) IN ACTION: ENGAGING MALAYSIAN SMEs TO INITIATE CSR CIRCLE MODEL

Abstract

Corporate social responsibility urges businesses and companies to divert their courses of doing business from solely focusing on profit maximization to showing some consideration to others wellbeing as well. Most CSR involvements discussed either at the international level or national level are widely circling around multinational corporations, public listed companies and most of other large corporations. Small and medium-sized enterprises (SMEs) which are considered as ‘backbone’ of most world economies are often neglected. Overall, SMEs constitute more than 90% of businesses worldwide. In Malaysia more than 95% of the business establishments consist of SMEs that provide jobs for more than 7.3 million workers equivalent to 48.4% of Malaysian total employment. Majority of the SMEs are privately owned, run by their sole owner/entrepreneur or a few individuals who are, most probably, family related. The owners usually have the ultimate power to influence most of the strategic decisions. Therefore, the objectives of this conceptual paper is to discuss and propose the point of origin as to where and how the process of inculcating the CSR culture in Malaysia should actually spark. Thru thorough literature search this study managed to propose CSR Circle Model that shall guide SMEs involvement in CSR. SMEs’ visions and missions portray very much of their owner-managers’ beliefs. If the individual business’s owners strongly and sincerely believe in the concept of CSR, they will inspire their businesses and develop a culture of ‘caring society’ among employees, customers, suppliers and surrounding community. SMEs’ owners-managers can lead the initiation of CSR Circle that will tremendously spread the CR culture nationwide.