The role of corporate social responsibility for flood mitigation among Malaysian companies

Abstract

Rapid industrialisation in the developing countries has contributed to an increase in natural disasters such as flood hazards. Rise in the losses due to disasters is an indicator of non-sustainable development. Although the natural forces in Malaysia have been mainly liable for the natural disasters in the past, recently human intervention in nature is worsening the flood hazards. As the world moves closer to the year 2020, the country is expected to face serious challenges in flood management. The floods in the year 2014 is an example of the increase in the magnitude of the flood disaster. In this scenario, it is imperative to have a holistic plan to face this challenge. Since private sector can play a key role in flood mitigation, the role of the corporate social responsibility (CSR) in flood mitigation is one area that has to be studied. This study aims to understand the role of Malaysian listed companies in flood mitigation through their CSR programs and involvement of other stakeholders in successful implementation of flood mitigation process. The study also highlighted a few recommendations to improve the CSR effort of companies in the process of flood mitigation. The research employed a qualitative method and the data was collected using the semi-structured in-depth interview. The first stage of the research involves a content analysis of 928 company websites and online published CSR related documents of the Malaysian listed companies. The second stage involves an in-depth interview with the companies CSR executives, NGO representatives, individual volunteers, CSR advisors and the government representatives. Subsequently, the data was analysed using qualitative content analysis. The key findings of the study indicated the need for the companies, NGO and the government to understand the multifaceted meaning of CSR. The study also highlighted the importance of understanding the need for flood mitigation, each stakeholder’s roles and responsibility and their contribution in the flood mitigation exercise. The findings also proposed to have collaboration among the stakeholders. Based on the findings, the research has presented a model in which the companies, NGO and the government need to share the responsibilities equally and develop a social contract that leads to the effective and successful implementation of flood mitigation exercise. Theoretically, the study proposed a model between stakeholders for flood mitigation in Malaysia. Practically, the results will provide good guidelines for the corporate sectors and the government to cope up with the challenge of flood management and in building a resilient community which will be well equipped to handle the effect of such disasters. It will encourage the corporate to help the government in pre-disaster mitigation and preparedness instead of only contributing to the relief funds after the disaster. Hence, this research will help in managing the expenditure efficiently on the flood risk management initiatives by choosing the right collaboration for maximum business and societal outcomes that aligns with the government policy in the 11th Malaysia plan.