Corporate social responsibility practices by public limited construction firms in Malaysia

Abstract

This research examines the application of Corporate Social Responsibility (CSR) in the Malaysian construction industry with the primary aim of developing a project-level CSR Framework for construction companies. Following the 2006 Budget Speech, CSR disclosure has been made compulsory for Public Listed Companies (PLC) in Malaysia but to date, there has been no sector-specific framework or guidelines for CSR. Considering the nature of the construction industry which involves complex processes and activities and a varied range of stakeholders, having a framework or guideline which is specific for construction companies is imperative. Hence, through literature reviews, content analysis on 26 CSR reports by Malaysian construction PLCs and subsequent interviews with some of the companies involved, the researcher assesses the development of CSR in the Malaysian construction industry, reviews the CSR policies and activities of construction firms in Malaysia and proposes a CSR framework for construction companies at the project level. Findings suggest that although CSR disclosure is compulsory for construction PLCs, the extent of CSR application can vary significantly across the industry as companies’ CSR agendas are not governed by any specific framework, standards or guidelines. The proposed framework could assist construction companies in developing their CSR policies and to fully embrace the concept of CSR to achieve the triple bottom-line: economic, environmental and social sustainability.