By: Mohd Jarulullah bin Che Jahari
Introduction
Corporate social responsibility (CSR) was identified as vital tool in business and leadership to sustain in the tough of economy situation. To sustain, the leader should know how to survive with create a profit and care about society. As an example, In Malaysia, many of acts were legislated to control sustainability of economic and society. However, in 2019 history created by air pollution in Sungai Kim Kim, Johor. (Noh, 2019). That company will be penalties if proven guilty with force to stop operation and so on. The leader in that company is careless about healthy of society and effected to their business. This is an example of sustainability of business will be effected if look for profit only and the lack of knowledge of leader. However, many of leaders today was practiced CSR as a crucial tool in sustain the business. The leaders have a crucially significant role in adopting and practicing and understood about responsibility to employee, such as safe, fair and inclusive workplace is a CSR in organization and to society.
According Carrol (2016), CSR is modern formulation and important since 1950s and grew since Industrial Revolution in 1800s. Today, most of literature obvious in the United State ( Carrol 2008, Cavrou, 1999). Otherwise, most of the countries in the world are practices the CSR which in different names. For example, in islamic perspective was called a zakat, sedekah and waqaf (Mir et al.) This is as a proffment that csr is a classical practiced in the world.
CSR was known as a management concept integrated between environmental and social. ( UNIDO,2019). The condusife of environement in society encourage the people to support the organization or business. According the UNIDO, the CSR used as a tool to reduce poverty in the world.
The early model of CSR was created by Carrol in 1979, this is ‘Three Dimensional Conceptual Model of Corporate Performance’ and known as Pyramid of Social Responsibility. In additional, intersecting model and concentric model are familiar models in study about CSR. In this review was selected Pyramid Model as successful CSR Model. The pyramid model have four layers which is at the bottom is economic, following legal, ethic and philanthropic. Now today, emerge a new concept of CSR was called Contemporary CSR. Some scholar claim has twelve of model such as CSR 2.0 proposed by Visser in 2010. (Zeitty, 2015). Whatever of model was drawing, almost all of model was talking about sustainability of business or organization.
Literature review
The model of CSR is vast and multi definition to understood in the study and practiced. In 1970, Carrol was developing the Pyramid Model as a reference in CSR activities. The community was believed till now that model is the best to apply even have some argued. The pyramid model described about economic, legal, ethic and lastly with philanthropic.
The economic factor becomes a foundation in pyramid model to understood because the achievement in economic are important to company in maintain sustainability in the market. ( Dusuki, 2008). The economic must be strong to company or organization before look for CSR because sometimes it used a part of company profit. The CSR also can contribute to society in various paths, such as idea, time, and energy. However, CSR in spending in finance is more famous compared another method. As example, coca cola spending 1% from annual profit in CSR entire the world in many activities such as environment control, supllied clean water and so on. (Dudovski,2015). In additional, anything activities ussualy supported by spending some money to success. Business activities will be create a profit when they are add value ( Carroll, 2016). As a part in basic economy system in society with provides services and good at the fair in prices. ( Dusuki, 2008). The responsibility of business not only profit, but to sustain the society in comfortable living.
In looking profit and sustain, the business must be line with legal, law or rule in local, state and federal ( Dusuki,2008). The second tier from Carroll Pyramid is about Legal. The societies hope any product, or service fulfills at least minimum law. According Carroll ( 2016 ), society need are goods and services provided at minimum legal requirement and fulfill all legal obligation to societal stakeholder.
The second last in Carroll Pyramid in about ethic. The society hope the leader in business or organization has the ethic in practicing. In the ethical expectation is about obeyed to spirit of the law, not only letter of the law. (Carroll,2016). Absolutely because law was regulated by government in society is to protect the business sector and society. Enforcement have a lack in practical because insufficient man power, as hope to society just awareness of business in ethic. Society also hope business being good corporate citizens ( Carroll,2016).
At the top in Carroll Pyramid is philanthropic (to become good person). They are guided by business’s desire to participate in social activities that are not mandated, not required by law, and not generally expected of business in an ethical sense and to fulfill its perceived philanthropic responsibilities, companies engage in a variety of giving forms – gifts of monetary resources, product and service donations, volunteerism by employees and management, community development and any other discretionary contribution to the community or stakeholder groups that make up the community.
Discussion
CSR is virtue to society and become a tool in improve living with eradicate of poverty. Poverty was defined in multidimensional, lack in income, lack in healthy, education and so on. Contribution from company, organization will spend in improving living style. In Malaysia, every year Jakel Company spend in CSR to Orang Kurang Upaya (OKU) in celebrating Hari Raya Aidilfitri.(Ngah,2019). This is good an example to following by all organization or to create excellent reputation and to sustainability. The improvement of reputation to society is crucial to create economic opportunities.
In Islamic countries like Malaysia, zakat, sedekah, and waqaf as the CSR was applied in daily routine. Differentiate compared each other of CSR is the willingness to individual. In Islamic, you must pay such as zakat compared conventional CSR is willingness of an individual. However, the goal is still same thing, to help society with shared money, energy, idea and so on. In additional, zakat is about rule in religion to obeying. But, many discussion need to explore because sometime non muslim is more charity in CSR compared muslim.
The second of argue is CSR compared race in focusing at Malaysia. The CSR model in Malaysia could be challenge because have multi race. In Malaysia, Melayu race was assuming a muslim and practiced CSR more than other race. However, no scholars have no proved it is true. Based on news, sometime looked other race is more contributed in CSR in developing Malaysia.
Responsibility to move a CSR is beginning with somebody in any business or organization was called a leader. The awareness and willing is depend on the leader to plan and did. Leader has a lot of power in give decision to practice the CSR o refuse. However, in new globalization, many of leader know about vital of CSR in contribute economic to company, sustain the environment, and reduce a poverty. They are know, without support from society, their business cannot o sustain and will be collapse.
CSR still needed to create conducive in workplace. Almost of employee hope the CSR from employer as appreciated and encouragement. As example, every year civil servant in Malaysia hopes a CSR from government as encouragement with paying a bonus. The government also provided holiday to employee intend to hajj, Mecca. This is as example, not only in business sector only hope for CSR, but in government services also. The leader also assumed practiced CSR with provided safe, conducive environment in office. As early mention, the CSR is not only about finance, but multidimensional to describe as long as it give benefit to somebody or society.
Summary
To understanding each type of responsibility, it could be said that the economic responsibility is “required” of business by society; the legal responsibility also is “required” of business by society; the ethical responsibility is “expected” of business by society; and the philanthropic responsibility is “expected/desired” of business by society (Carroll, 2016). CSR is one of needed item in living to balance a gap between richest and poorest. Without cooperation with leader in applied CSR, the government will spend full budget to improve citizen life and reduce poverty.
The CSR is not about religion, but about virtue in heart of people to help somebody, or someone. Most important, to sustain our home, that is the earth in conducive to living without disaster like a global warming and so on. According NASA, the hydrocarbon gas was produced from natural sources and human activities. This is one of evident that irresponsibility of man in given unhealthy of earth. This is biggest CSR across the boundary in the world.
In determine of successful of CSR in the world, the leader was to take first step in fulfill people hope. The leaders have a crucially significant role in adopting the CSR in the world. CSR leadership emphasis a treating people fairly and morality. (Philipp et al., 2019). Confucius mention, to become a leader, you must first become a human being. The interactive between leader and CSR is strong and to become excellent leader, awareness about responsibility to society is must.
References
- Carroll, A. B. (2016). Carroll’s pyramid of CSR: Taking another look. International Journal of Corporate Social Responsibility,1(1). doi:10.1186/s40991-016-0004-6
- Dusuki A.W., 2008, International Association For Islamic Economics Review of Islamic Economics, Vol. 12, NO.1, 2008,pp. 5-28.
- Geva, A. (2008). Three Models of Corporate Social Responsibility: Interrelationships between Theory, Research, and Practice. Business and Society Review,113(1), 1-41.
- Gorski H. (2017). Leadership and corporate sosial responsibility . International Conference Knowledge-Based Organization. Vol. XXIII No 1 2017
- https://www.unido.org/our-focus/advancing-economic-competitiveness/competitive-trade-capacities-and-corporate-responsibility/corporate-social-responsibility-market-integration/what-csr
- Mir U., Hassan S.,and Hassan S. ( No year) . Islamic Perspective of Corporate Social Responsibility , Al-Adwa 46:31 Islamic Perspective of Corporate 77
- Unknown, (No Year). The Causes of Climate Change. https://climate.nasa.gov/causes/
- Ngah H. (2019). Jakel Penuhi Impian Insan Istimewa, Berita Harian. https://www.bharian.com.my/wanita/lain-lain/2019/05/561056/jakel-penuhi-impian-insan-istimewa
- Phillips, S., Thai, V. V., & Halim, Z. (2019). Airline Value Chain Capabilities and CSR Performance: The Connection Between CSR Leadership and CSR Culture with CSR Performance, Customer Satisfaction and Financial Performance. The Asian Journal of Shipping and Logistics,35(1), 30-40. doi:10.1016/j.ajsl.2019.03.005
- Zeittey K. (2015).Corporate Social Responsibility (CSR) Models: An Approach to Environmental Perspective. International Research Journal of Engineering and Technology (IRJET). Volume: 02 Issue: 07
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