The Effect of CSR Activities towards Manufacturing Industry in Malaysia
INTI International University,Nilai, Malaysia
ABSTRACT
Corporate social responsibility (CSR) has become increasingly important to the competitiveness of all businesses. Despite the widespread of the practical and academic interest in CSR especially in the area of human resource and its impact on the business performance, few theoretical and empirical contributions could be found. The primary objective of this study was to identify and empirically test the factor influencing the manufacturing organization to implement CSR activities and the effect on their business performance. The outcomes of this study will assist the manufacturing organization to effectively and responsibly manage their CSR activities to increase their competitiveness. A structured, self-administered questionnaire was distributed to 100 top managers and first line managers who work in the manufacturing organization. The respondents were identified by means of a purposive sampling technique. A descriptive analysis was carried out, and Cronbach's alpha coefficients calculated to determine the reliability of the measuring instrument of each question. Binary logit regression was used to determine the factor that influence manufacturing organization to implement CSR activities on their business performance. The empirical results of this study indicate that employee talent, growth, engagement and availability of solid CSR structure have a strong influence on manufacturing decision.
KEYWORDS
Business performance, corporate social responsibility, manufacturing industry, top management