Business

Friday August 14, 2009

Local corporate social responsibility not good enough

By VANMALA SUBRAMANIAM


KUALA LUMPUR: The performance of Malaysian companies in corporate social responsibility (CSR) leaves much to be desired, according to Deputy Finance Minister Datuk Wira Chor Chee Heung.

“Local companies, both public and private, have not fared well compared with their British and Australian counterparts in terms of being socially and environmentally friendly,” he said.

Speaking at the ACCA Malaysia Sustainability Reporting Awards 2009 (ACCA MaSRA) here yesterday, Chor said there was a lack of awareness among local firms when it came to the importance of environmental sustainability.

“I have to admit that we are far off the mark in the area of CSR and our adherence to international environmental standards.

“But that is why the Government, together with regulatory bodies like ACCA and Securities Commission, is extending a long-term commitment to further the national agenda of sustainability in the corporate sector,” he said.

Chor noted that local public-listed companies (PLCs) are encouraged to achieve better non-financial reporting through voluntary and mandatory initiatives.

This include Bursa Malaysia’s move that makes it compulsory for PLCs to disclose their environmental and social reporting in annual reports.

Chor also called on local companies to adopt a self-regulatory model of corporate governance.

This will enable them to improve and take responsibility for their sustainability reporting and help in international convergence with best practices.

“Company self-regulation is important in the current environment whereby corporate fraud and global volatility has damaged investor and market confidence,” he said.

He also urged local firms to take their cue from leading multinational companies in terms of self-regulation.

ACCA MaSRA was introduced in 2002 to encourage sustainability reporting among local companies.

This year, UEM Environment Sdn Bhd clinched the award for Best Sustainability Report while Kulim (M) Bhd’s plantation division was named the Best First Time Reporter.

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