Skip to main content
SpringerLink
Log in

Environmental Related CSR Initiatives for Business Strategy: A Case Study on Small and Medium (SME) Industries in Malaysia

  • Chapter
  • First Online:
The Dynamics of Corporate Social Responsibility

Part of the book series: CSR, Sustainability, Ethics & Governance ((CSEG))

Abstract

The practice of social and environmental responsibility is inevitably vital in the present global scenario. Through Corporate Social Responsibility (CSR) also described as social responsibility (SR), companies are able to contribute to sustainable development while contributing to the protection of the natural environment, which can be achieved by the usage of natural resources in a responsible manner. However in most cases, SR has been regarded as a burden to business operations rather than a significant and direct contributor towards business revenue. Being part of the supply chain and catering their products to larger organisations, or, in some cases catering directly to the end customer, Small and Medium Enterprises (SMEs) hold accountability to ensure their products are suited to present demands of various stakeholders. This study aims to understand the perception on environmentally related initiatives among selected manufacturing SMEs and to further understand the obstacles that hinder the manufacturing SMEs towards taking-up strategically inclined environmentally related SR. The In-depth interview method had been employed to gauge the response from the selected SME representatives. The research would be significant to understand better on the positioning of SMEs taking-up environmentally related SR practices from a strategic perspective which emphasizes on the ‘built-in’ concept into the organisation strategy. The initial finding is that, SR has been understood as philanthropy with a connotation of giving out of monetary resources usually taken-up by large organizations on a periodical basis, serving as a tool of publicity. Overall, the potentials of SR are not being realized by the SME representatives with shallow understanding that regards SR as a drawback rather than an industrial strength to be pursued for business competitiveness.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 119.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 159.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 159.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    Corporate Social Responsibility and Social Responsibility are used interchangeably in this study.

References

  • Adams, A., & Cox, A. L. (2008). Questionnaires, in-depth interviews and focus groups. In P. Cairns & A. L. Cox (Eds.), Research methods for human computer interaction (pp. 17–34). Cambridge: Cambridge University Press.

    Chapter  Google Scholar 

  • Amaesh, K. M., Osuji, O. K., & Nnodim, P. (2008). Corporate social responsibility in supply chains of global brands: A boundaryless responsibility? Journal of Business Ethics, 81(1), 223–234.

    Article  Google Scholar 

  • Argenti, P. A. (2009). Corporate communication (5th ed.). New York, NY: McGraw-Hill/Irwin.

    Google Scholar 

  • Azlan, A., & Zarina, Z. (2007). A perspective on CSR. In M. N. Mohd. Ali (Ed.), Corporate social responsibility: Our first look. Kuala Lumpur: Malaysian Institute of Integrity.

    Google Scholar 

  • Battaglia, M., Bianchi, L., Frey, M., & Iraldo, F. (2010). An innovative model to promote CSR among SMEs operating in industrial clusters: Evidence from an EU project. Corporate Social Responsibility and Environmental Management, 17(3), 133–141.

    Article  Google Scholar 

  • Berkowitz, A. R., Ford, M. E., & Brewer, C. A. (2004). A framework for integrating ecological literacy, civics literacy, and environmental citizenship in environmental education. Accessed April 4, 2012, from http://www.sendadarwin.cl/espanol/wp-content/uploads/2010/01/ecological-literacy-alan-berkowitz.pdf

  • Borga, F., Citterio, A., Noci, G., & Pizzurno, E. (2009). Sustainability report in small enterprises: Case studies in Italian furniture companies. Business Strategy and the Environment, 18(3), 162–176.

    Article  Google Scholar 

  • Bryman, A., & Bell, E. (2015). Business research methods (4th ed.). Oxford: Oxford University Press.

    Google Scholar 

  • Castka, P., Balzarova, M. A., Bamber, C. J., & Sharp, J. M. (2004). How can SMEs effectively implement the corporate social responsibility (CSR) agenda? A UK case study perspective. Corporate Social Responsibility and Environmental Management, 11(3), 140–149.

    Article  Google Scholar 

  • Chamhuri, S., & Siti Haslina, M. H. (2008). A study on corporate social responsibility practices amongst business organisations in Malaysia. Malaysia: Institute for Environment and Development (LESTARI), Universiti Kebangsaan. Accessed June 17, 2011, from www.wbiconpro.com/242-Siwar,C%20&%20Harizan,S.pdf

  • Commission of the European Communities. (2001). Green paper: Promoting a European framework for corporate social responsibility. COM (2001) 366 final. Retrieved January 15, 2011, from http://eurlex.europa.eu/LexUriServ/site/en/com/2001/com2001_0366en01.pdf

  • Commission of the European Communities. (2007). Small, clean and competitive: A programme to help small and medium-sized enterprises comply with environmental legislation. Communication from the Commission to the Council, the European parliament, the European Economic and Social Committee and the Committee of the Regions, COM 379 final. Retrieved January 15, 2011, from www.ec.europa.eu/environment/sme/pdf/impact_assess_906_en.pdf

  • Crals, E., & Vereeck, L. (2008). Sustainable entrepreneurship in SMEs: Theory and practice. Third Global Conference on Environmental Justice and Global Citizenship, Copenhagen, Denmark.

    Google Scholar 

  • Fitjar, R. D. (2011). Little big firms? Corporate social responsibility in small businesses that do not compete against big ones. Business Ethics: A European Review, 20(1), 30–44.

    Article  Google Scholar 

  • Freisleben, G. (2011). CSR-benefits and burdens of CSR for SMEs-CSR policies are assuming a larger role at more and more small and mid-sized enterprises. Financial Executive Institute, 27(8), 53–56.

    Google Scholar 

  • Galletta, A. (2013). Mastering the semi-structured interview and beyond. From research design to analysis and publication. New York, NY: New York University Press.

    Book  Google Scholar 

  • Glaeser, E. L., & Kerr, W. R. (2010). The secret to job growth: Think small. Harvard Business Review, 88, 26.

    Google Scholar 

  • Grayson, D. (2005). From responsibility to opportunity. Changing attitudes to CR in the business world and beyond. Corporate Responsibility Management, 2(2), 34–37.

    Google Scholar 

  • Grayson, D., & Hodges, A. (2004). Corporate social opportunity—7 steps to make corporate social responsibility work for your business. Sheffield: Greenleaf Publications.

    Google Scholar 

  • Green, R. (2003). The social responsibility of business. In L. Demaret (Ed.), Corporate social responsibility: Myth or reality? (Vol. 1, pp. 75–79). Geneva: International Labour Office.

    Google Scholar 

  • Grigore, G., & Grigore, C. (2011). Socially responsible SMEs: Contributors to regional competitiveness. Agricultural Management/Lucrari Stiintifice Seria I, Management Agricol, 13(1), 255–258. Retrieved February 15, 2012 from http://www.usab-tm.ro/utilizatori/management/file/cercetare/2010-2011/vol_xiii/section1/eco036.pdf

  • Gupta, A. D. (2008). Governance, sustainable development and social responsibility: Towards future mapping. In D. Crowther & N. Capaldi (Eds.), The Ashgate research companion to corporate social responsibility. England: Ashgate Publishing Limited.

    Google Scholar 

  • Hasan, F., & Kamil, I. (2009). The relationship of CSR and financial performance: New evidence from Indonesian companies. Issues in Social and Environmental Accounting, 3(1), 66–87.

    Google Scholar 

  • Healy, G. (2008). Strategic management (2nd ed.). Melbourne: Thomson.

    Google Scholar 

  • Jarutirasarn, P., & Aiyeku, J. F. (2010). Management attitude towards incorporating corporate social responsibility and the impact on firm’s performance: Analysis of Thai SMEs. International Journal of Business Strategy, 10(2), 90–98.

    Google Scholar 

  • Jenkins, H. (2006). Small business champions for corporate social responsibility. Journal of Business Ethics, 67(3), 241–256.

    Article  Google Scholar 

  • Jenkins, H. (2009). A business opportunity model of corporate social responsibility for small and medium sized enterprises. Business Ethics: A European Review, 18(1), 21–36.

    Article  Google Scholar 

  • Justice, D. W. (2003). Corporate social responsibility: Challenges and opportunities for trade unionists. In L. Demaret (Ed.), Corporate social responsibility: Myth or reality? (Vol. 1, pp. 1–13). Geneva: International Labour Office.

    Google Scholar 

  • Kabiraj, S., Topkar, V., & Walke, R. C. (2010). Going green: A holistic approach to transform business. International Journal of Managing Information Technology (IJMIT), 2(3), 22–31.

    Article  Google Scholar 

  • Khairulazmi, M. K. (2010). Investigating the internal and external factors that affect growth business intention and CSR intention among SMEs in Malaysia. Unpublished Master’s Thesis, Universiti Sains Malaysia, Penang.

    Google Scholar 

  • Kuhndt, M., Von Geibler, J., & Villar, A. (2003). Challenges for SMEs in a globalized world economy. Industry and Environment, 26(4), 7–9.

    Google Scholar 

  • Lepoutre, & Heene. (2006). Investigating the impact of firm size on small business social responsibility: A critical review. Journal of Business Ethics, 67(3), 257–273.

    Article  Google Scholar 

  • Longfield, K. (2004). In-depth interviews, social marketing research tool kit. Retrieved January 15, 2012 from www.aidsmark.org/…/14_Research-Toolkit-Ch6-In-Depth-Interviews

  • MacGregor, S. P., & Fontrodona, J. P. (2011). Strategic CSR for SMEs: Paradox or possibility? Universia Business Review, 30, 80–95.

    Google Scholar 

  • National SME Development Council. (2012). SME annual report 2012/13. Retrieved December 30, 2013 from http://www.smecorp.gov.my/vn2/node/717

  • Noor Hazlina, A., & Ramayah, T. (2011). Does the notion of ‘doing well by doing good’ prevail among entrepreneurial ventures in a developing nation? Journal of Business Ethics, 106, 479–490.

    Google Scholar 

  • Norhayah, Z., & Azlan, A. (2006). Realising corporate social responsibility in Malaysia: A view from the accounting profession. Journal of Corporate Citizenship, 24, 101–114.

    Google Scholar 

  • Passin, Y. (2008). SMEs and the fallacy of formalising CSR business ethics. A European Review, 17(4), 364–378.

    Google Scholar 

  • Ring, I. (1997). Evolutionary strategies in environmental policy. Ecological Economics, 23(3), 237–249.

    Article  Google Scholar 

  • Russo, A., & Perrini, F. (2010). Investigating stakeholder theory and social capital: CSR in large firms and SMEs. Journal of Business Ethics, 91(2), 207–221.

    Article  Google Scholar 

  • Rutherfoord, R., Blackburn, R. A., & Spence, L. J. (2000). Environmental management and the small firm: An international comparison. International Journal of Entrepreneurial Behaviour and Research, 6, 310–325.

    Article  Google Scholar 

  • Seidel, M., Seidel, R., Tedford, D., Cross, R., Wait, L., & Hämmerle, E. (2009). Overcoming barriers to implementing environmentally benign manufacturing practices: Strategic tools for SMEs. Environmental Quality Management, 18(3), 37–55.

    Article  Google Scholar 

  • Seidel, M., Seidel, R., Tedford, D., Wait, L., Cross, R., & Hämmerle, E. (2008). Moving New Zealand manufacturers toward environmentally sustainable practices. The 4th New Zealand Metals Industry Conference—Building Sustainability, Auckland.

    Google Scholar 

  • Steiner, G. A., & Steiner, J. F. (2009). Business, government and society. A managerial perspective. New York, NY: McGraw Hill.

    Google Scholar 

  • Steyn, B., & Niemann, L. (2008). Institutionalising the strategic role of corporate communication/public relations through its contribution to enterprise strategy and enterprise governance. Paper Submitted to the 10th Annual EUPRERA Conference, Milan, 16–18.

    Google Scholar 

  • Suprawan, L., DeBussy, N., & Dickinson, S. (2009). Corporate social responsibility in the SME sector: An exploratory investigation. Proceedings of the Australia and New Zealand Marketing Academy Conference (ANZMAC), 2009.

    Google Scholar 

  • Ulrike, G. (2010). Establishing strategic CSR in SMEs: An Austrian CSR quality seal to substantiate the strategic CSR performance. Sustainable Development, 18(2), 90–98.

    Article  Google Scholar 

  • Von Weltzien Høivik, H., & Shankar, D. (2011). How can SMEs in a cluster respond to global demands for corporate responsibility? Journal of Business Ethics, 101, 175–195.

    Article  Google Scholar 

  • Von Weltzien Hoivik, H., & Mele, D. (2009). Can an SME become a global corporate citizen? Evidence from a case study. Journal of Business Ethics, 88, 551–563.

    Article  Google Scholar 

  • Weerasiri, S., & Zhengang, Z. (2012). Attitudes and awareness towards environmental management and its impact on environmental management practices (EMPs) of SMEs in Sri Lanka. Journal of Social and Development Sciences, 3(1), 16–23.

    Google Scholar 

  • Williamson, D. W., Lynch-Wood, G., & Ramsay, J. (2006). Drivers of environmental behavior in mfg. SMEs and the implications of CSR. Journal of Business Ethics, 67(1), 317–330.

    Article  Google Scholar 

  • Yu, J., & Bell, J. N. B. (2007). Building a sustainable business in China’s small and medium-sized enterprises (SMEs). Journal of Environmental Assessment Policy and Management, 9(1), 19–43.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Universiti Sains Malaysia, Gelugor, Malaysia

    Jamilah Ahmad

  2. School of Communication, Universiti Sains Malaysia, Gelugor, Malaysia

    Mahadevan Krishnan

Authors
  1. Jamilah Ahmad
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Mahadevan Krishnan
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Jamilah Ahmad .

Editor information

Editors and Affiliations

  1. Dept of Management Theory, Warsaw School of Economics, Warsaw, Poland

    Maria Aluchna

  2. London Metropolitan University, London Guildhall Faculty Business & Law, London, United Kingdom

    Samuel O. Idowu

Rights and permissions

Reprints and permissions

Copyright information

© 2017 Springer International Publishing Switzerland

About this chapter

Cite this chapter

Ahmad, J., Krishnan, M. (2017). Environmental Related CSR Initiatives for Business Strategy: A Case Study on Small and Medium (SME) Industries in Malaysia . In: Aluchna, M., Idowu, S. (eds) The Dynamics of Corporate Social Responsibility. CSR, Sustainability, Ethics & Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-39089-5_16

Download citation

Publish with us

Policies and ethics

Search

Navigation