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HİSSEDAR AKTİVİZMASI VE MALEZYA'DA KURUMSAL SOSYAL SORUMLULUK - ACTIVISM AND CORPORATE SOCIAL RESPONSIBILITY IN MALAYSIA

Year 2020, Volume: 7 Issue: 1, 1 - 19, 23.03.2020
https://doi.org/10.30798/makuiibf.532662

Abstract

The purpose of this paper is to shed light on the issues of shareholder activism in Malaysia. The findings shows that shareholder activism already taken place in Malaysia. Although, it is not as rigorously and actively as compare to developed country, the existence of shareholder activism in Malaysia indicated the awareness is rising. Shareholder activism is one of the vital element in corporate governance framework to ensure good governance practice. By engaging company, shareholders ensuring there is a check and balance on the course of action taken by company. Furthermore, the research outcome also indicates shareholders are likely to use voting rights and dialogue in engaging companies to practice good CSR. Voting rights is considered as powerful means because voted resolution shows the will of the shareholder. Additionally, dialogue can enhance transparency and openness between shareholders and management of company. Besides, through dialogue, shareholders may signal to the management of the company on the importance of CSR, instead of shareholder supremacy. Having two way communication can improve mutual understanding between both parties and indicate good corporate governance. 

References

  • Andy, L., & Mustapha, M. (2013). CSR in Small and Medium Enterprises: Evidence from Malaysia. 2nd International Conference on Management, Economics and Finance (2nd ICMEF 2013) Proceeding. Sabah
  • Abdul, Z., & Ibrahim, S. (2002). Executive and management attitudes towards corporate social responsibility in Malaysia. Corporate Governance: The International Journal of Business in Society 2(4), 10-16
  • Burke, L. and Logsdon, J.M. (1996) How Corporate Social Responsibility Pays Off. Long Range Planning 29(4), 495-502.
  • Bebchuk, L. A. (2007). The Myth of Shareholder Franchise. Virginia Law Preview 93(3), 675-732.
  • Bromilow, C., Cloyd, M. A., Dixon, C., Himelfarb, P. J., & Morrow, J. (2014). Director Dialogue with Shareholders, The Corporate Board. Retrieved from https://www.weil.com/~/media/files/pdfs/directordialoguewithshareholders.pdf (Accessed 1.1.2019).
  • Bebchuk, L. (2005). The case for increasing shareholder power. Harvard Law Review, 118(3), 835–914.
  • Bizjak, J., & Marquette, C. (1998). Are shareholder proposals all bark and no bite? Evidence from shareholder resolutions to rescind poison pills. Journal of Financial and Quantitative Analysis, 33(4), 499-521.
  • Brancato, C.K., & Rabimov, F (2007). The 2007 Institutional Investment Report. Conference of Board Rep, Con. Board Inc. New York.
  • Craword, D., & Scaleta, T. (2005). The Balance Scorecard and Corporate Social Responsibility: Aligning Values and Profits. CMA Management, 20-27
  • Dalilawati, Z & Suria, Z. (2013). Corporate Social Responsibility Reporting in Malaysia: A Research Note. Journal of Accounting and Perspective 6, 21-36. Ertimur, Y., Ferri, F., & Stubben, S. (2010). Board of directors’ responsiveness to shareholders: Evidence from shareholder proposals. Journal of Corporate Finance, 16(1), 53–72.
  • Fatemi, A. M., & Fooladi, I. J. (2013). Sustainable Finance: A New Paradigm. Global Finance Journal 24(2), 101-113.
  • Ellinor, L., & Gerard, G. (1998). Dialogue: Rediscover the Transforming Power of Conversation. London: Wiley
  • Friedman, M. 1970. The social responsibility of business is to increase its profits. New York Times Magazine, September 13: 32-33, 122-124.
  • Ferri, F., & Sandino, T. (2009). The impacts of shareholder activism on financial reporting and compensation. The case of employee stocks expensing. The Accounting Review, 84(2), 433-466.
  • Field, A. P. (2009). Discovering statistics using SPSS. Los Angeles. SAGE Publications.
  • Hanim Norza, B. (2017). The Determinants of Corporate Social Responsibility Disclosure: The Case of Malaysian Government-Linked Companies in Malaysia, SHS Web of Conferece, 36, 1-16.
  • Khan, A., Muttakin, M. B., & Siddiqui, J. (2013). Corporate governance and corporate social responsibility disclosures: evidence from an emerging economy. Journal of business ethics, 114(2), 207-223.
  • Krejcie, R.V., & Morgan, D.W. (1970). Determining Sample Size for Research Activities. Educational and Psychological Measurement, 30, 607-610
  • Lu, J. Y. & Castka, P. (2009) Corporate Social Responsibility in Malaysia-Expert Views and Perspective. Corporate Social Responsibility Environment and Management 16, 146-154.
  • Moravcikova, K., Stefanikova, Ľ., & Rypakova, M. (2015). CSR Reporting as an Important Tool of CSR Communication. Procedia Economics and Finance 26(15), 332–338.
  • Muwazir, M. M. (2011). Corporate social responsibility in the context of financial services sector in Malaysia (Doctoral dissertation, Cardiff University). Retrieved from https://orca.cf.ac.uk/21878/1/2011MuwazirMRPhD.pdf (Accessed 30.12.2018)
  • Monks, R. A. G., & Minow, N. (2004). Corporate Governance. Blackwell Publisher.
  • Monks, R. A. G., & Minow, N. (1991). Power and Accountability. HarperBusiness.
  • Malaysian Code on Corporate Governance. (2016). Retreived from https://www.sc.com.my/api/documentms/download.ashx?id=70a5568b-1937-4d2b-8cbf-3aefed112c0a (Accessed 1.1.2019)
  • Maizatul Akma, M. (2012). The Influence of Institutional Shareholder Activism as a Corporate Governance Monitoring Mechanism in Malaysia. International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering 6(11). 3110-3114.
  • Matsusaka, J. G., & Ozbas, O. (2011). Shareholder Empowerment: The Rights to Approve and the Right to Propose. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.220.7379&rep=rep1&type=pdf (Accessed 1.1.2019).
  • Nik Nazli, N. A., Maliah, S. & Siswantoro, D. (2003). Corporate Social Responsibility Disclosure in Malaysia. An Analysis of Annual Reports of KLSE Listed Companies. International Journal of Economics and Management and Accounting 11(1).
  • Nor Shahira, A. A. & Rosmiza, A. (2017). A Review on the indicators disclosed responsibility reporting of public listed companies in Malaysia. Journal of Human Development 10(2), 1-14.
  • O’ Rouke, A. (2003). A New Politics of Engagement. Shareholder Activism For Corporate Social Responsibility. Business Strategy and the Environment 12(4), 227-239.
  • Putrajaya Committee, (2007). Catalyzing GLC Transformation. Retrieved from https://www.oecd.org/daf/ca/corporategovernanceofstateownedenterprises/40792845.pdf. (Accessed 30.12.2018)
  • Raza, A., Ilyas, M. I., Rauf, R., & Qamar, R. (2014). Relationship between Corporate Social Responsibility (CSR) and Corporate Financial Performance (CFP): literature review approach, Elixir Financial Management 46, 8404–8409.
  • Ruhaya, A., & Nuraida, M. R. (2013). CSR Reporting by Government Linked Companies and their Corporate Attributes. Australian Journal of Basic and Applied Science 7(4), 163-171.
  • Servaes, H., & Tamayo, A. (2013). The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness. Management Science, 59(5), 1045–1061.
  • Susan Tam, (2007). CSR is more than philanthropy says Zarinah. The Star Online. Retrieved from https://www.thestar.com.my/business/business-news/2007/08/24/csr-is-more-than-philanthropy-says-zarinah/ (24.12.2018)
  • Sadou, A., Alou, F. & Laluddin, H. (2017). Corporate Social Respomsibility Disclosures in Malaysia. Evidence from large companies. Social Responsibility Journal 13(1), 177-202.
  • Stuart L. Gillan and Laura T. Starks. (2003). Corporate Governance, Corporate Ownership,and the Role of Institutional Investors:A Global Perspective. Working paper series. Retrieved from http://webkuliah.unimedia.ac.id/ebook/files/gillan(inst-investors).pdf (Accessed 30.12.2018)
  • Sandberg, J. (2011). Changing the world through shareholder activism. Etikk I Praksis - Nordic Journal of Applied Ethics, 5(1), 51-78.
  • Sparke, R., & Cowton, C. J. (2004). The Maturing of Socially Responsible Investment: A Review of the Developing Link with Corporate Social Responsibility. Journal of Business Ethics, 53(1). 45-57.
  • Sarina, O., & Borges, W. G. (2015). Shareholder Activism in Malaysia: Is it Effective? Procedia-Social Behavioral Sciences. 172(27). 427-434. The Malaysian Reserve. (2017). Mandatory sustainability reporting poses a challenge for the first timers. Retrieved from https://themalaysianreserve.com/2017/04/03/mandatorysustainabilityreporting-poses-challenges-for-first-timers/ (Accessed 30.12.2018)
  • Thomas, R., & Cotter, J. (2007). Shareholder proposals in the new millennium: Shareholder support, board response, and market reaction. Journal of Corporate Finance, 13(2-3), 368-391.
  • Teng, L. J. (2016). It’s time for more shareholder activism. The Edge Financial Daily. Retrieved from https://mswg.org.my/sites/default/files/-8779.pdf (Accessed 1.1.2019)
  • Welker, M. & Wood, D. (2011). Shareholder Activism and Alienation. Current Anthropology 52(3), 57-69.
  • Yun, T. Z. (2018). The Impact of Shareholder Activisim. The Edge Malaysia. Retrieved from http://www.mswg.org.my/sites/default/files/The%20Impact%20Of%20Shareholder%20Activism.pdf (Accessed 1.1.2019).

SHAREHOLDER ACTIVISM AND CORPORATE SOCIAL RESPONSIBILITY IN MALAYSIA - HİSSEDAR AKTİVİZMASI VE MALEZYA'DA KURUMSAL SOSYAL SORUMLULUK

Year 2020, Volume: 7 Issue: 1, 1 - 19, 23.03.2020
https://doi.org/10.30798/makuiibf.532662

Abstract

Bu çalışmanın amacı Malezya'daki hissedar aktivizmi konularına ışık tutmaktır. Bulgular, hissedar aktivizminin Malezya'da zaten gerçekleştiğini göstermektedir. Gelişmiş ülkede olduğu kadar aktif ve katı bir şekilde olmasa da, Malezya'da hissedar aktivizminin varlığı farkındalığın arttığını göstermektedir. Hissedar aktivizmi, iyi yönetişim pratiğinin devamı için kurumsal yönetim çerçevesinde gerekli unsurlardan biridir. Şirketle iş birliği yaparak, hissedarlar, şirket tarafından gerçekleştirilen işlemler sırasında kontrol ve denge sağlarlar. Ayrıca, araştırmanın sonuçları, hissedarların iyi KSS uygulamaları için anonim şirketlerdeki oy kullanma haklarını ve diyaloğu kullanacağını göstermektedir. Oy hakları güçlü bir araç olarak kabul edilir, çünkü oy kullanma kararı hissedarın iradesini gösterir. Ek olarak diyalog yoluyla hissedarlar, şirket yönetimine hissedarların üstünlüğü yerine KSS'nin önemi konusunda sinyal verebilirler. İki yönlü iletişim kurmak taraflar arasındaki karşılıklı anlayışı geliştirebilir ve bu durum iyi kurumsal yönetişimi gösterir. 

References

  • Andy, L., & Mustapha, M. (2013). CSR in Small and Medium Enterprises: Evidence from Malaysia. 2nd International Conference on Management, Economics and Finance (2nd ICMEF 2013) Proceeding. Sabah
  • Abdul, Z., & Ibrahim, S. (2002). Executive and management attitudes towards corporate social responsibility in Malaysia. Corporate Governance: The International Journal of Business in Society 2(4), 10-16
  • Burke, L. and Logsdon, J.M. (1996) How Corporate Social Responsibility Pays Off. Long Range Planning 29(4), 495-502.
  • Bebchuk, L. A. (2007). The Myth of Shareholder Franchise. Virginia Law Preview 93(3), 675-732.
  • Bromilow, C., Cloyd, M. A., Dixon, C., Himelfarb, P. J., & Morrow, J. (2014). Director Dialogue with Shareholders, The Corporate Board. Retrieved from https://www.weil.com/~/media/files/pdfs/directordialoguewithshareholders.pdf (Accessed 1.1.2019).
  • Bebchuk, L. (2005). The case for increasing shareholder power. Harvard Law Review, 118(3), 835–914.
  • Bizjak, J., & Marquette, C. (1998). Are shareholder proposals all bark and no bite? Evidence from shareholder resolutions to rescind poison pills. Journal of Financial and Quantitative Analysis, 33(4), 499-521.
  • Brancato, C.K., & Rabimov, F (2007). The 2007 Institutional Investment Report. Conference of Board Rep, Con. Board Inc. New York.
  • Craword, D., & Scaleta, T. (2005). The Balance Scorecard and Corporate Social Responsibility: Aligning Values and Profits. CMA Management, 20-27
  • Dalilawati, Z & Suria, Z. (2013). Corporate Social Responsibility Reporting in Malaysia: A Research Note. Journal of Accounting and Perspective 6, 21-36. Ertimur, Y., Ferri, F., & Stubben, S. (2010). Board of directors’ responsiveness to shareholders: Evidence from shareholder proposals. Journal of Corporate Finance, 16(1), 53–72.
  • Fatemi, A. M., & Fooladi, I. J. (2013). Sustainable Finance: A New Paradigm. Global Finance Journal 24(2), 101-113.
  • Ellinor, L., & Gerard, G. (1998). Dialogue: Rediscover the Transforming Power of Conversation. London: Wiley
  • Friedman, M. 1970. The social responsibility of business is to increase its profits. New York Times Magazine, September 13: 32-33, 122-124.
  • Ferri, F., & Sandino, T. (2009). The impacts of shareholder activism on financial reporting and compensation. The case of employee stocks expensing. The Accounting Review, 84(2), 433-466.
  • Field, A. P. (2009). Discovering statistics using SPSS. Los Angeles. SAGE Publications.
  • Hanim Norza, B. (2017). The Determinants of Corporate Social Responsibility Disclosure: The Case of Malaysian Government-Linked Companies in Malaysia, SHS Web of Conferece, 36, 1-16.
  • Khan, A., Muttakin, M. B., & Siddiqui, J. (2013). Corporate governance and corporate social responsibility disclosures: evidence from an emerging economy. Journal of business ethics, 114(2), 207-223.
  • Krejcie, R.V., & Morgan, D.W. (1970). Determining Sample Size for Research Activities. Educational and Psychological Measurement, 30, 607-610
  • Lu, J. Y. & Castka, P. (2009) Corporate Social Responsibility in Malaysia-Expert Views and Perspective. Corporate Social Responsibility Environment and Management 16, 146-154.
  • Moravcikova, K., Stefanikova, Ľ., & Rypakova, M. (2015). CSR Reporting as an Important Tool of CSR Communication. Procedia Economics and Finance 26(15), 332–338.
  • Muwazir, M. M. (2011). Corporate social responsibility in the context of financial services sector in Malaysia (Doctoral dissertation, Cardiff University). Retrieved from https://orca.cf.ac.uk/21878/1/2011MuwazirMRPhD.pdf (Accessed 30.12.2018)
  • Monks, R. A. G., & Minow, N. (2004). Corporate Governance. Blackwell Publisher.
  • Monks, R. A. G., & Minow, N. (1991). Power and Accountability. HarperBusiness.
  • Malaysian Code on Corporate Governance. (2016). Retreived from https://www.sc.com.my/api/documentms/download.ashx?id=70a5568b-1937-4d2b-8cbf-3aefed112c0a (Accessed 1.1.2019)
  • Maizatul Akma, M. (2012). The Influence of Institutional Shareholder Activism as a Corporate Governance Monitoring Mechanism in Malaysia. International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering 6(11). 3110-3114.
  • Matsusaka, J. G., & Ozbas, O. (2011). Shareholder Empowerment: The Rights to Approve and the Right to Propose. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.220.7379&rep=rep1&type=pdf (Accessed 1.1.2019).
  • Nik Nazli, N. A., Maliah, S. & Siswantoro, D. (2003). Corporate Social Responsibility Disclosure in Malaysia. An Analysis of Annual Reports of KLSE Listed Companies. International Journal of Economics and Management and Accounting 11(1).
  • Nor Shahira, A. A. & Rosmiza, A. (2017). A Review on the indicators disclosed responsibility reporting of public listed companies in Malaysia. Journal of Human Development 10(2), 1-14.
  • O’ Rouke, A. (2003). A New Politics of Engagement. Shareholder Activism For Corporate Social Responsibility. Business Strategy and the Environment 12(4), 227-239.
  • Putrajaya Committee, (2007). Catalyzing GLC Transformation. Retrieved from https://www.oecd.org/daf/ca/corporategovernanceofstateownedenterprises/40792845.pdf. (Accessed 30.12.2018)
  • Raza, A., Ilyas, M. I., Rauf, R., & Qamar, R. (2014). Relationship between Corporate Social Responsibility (CSR) and Corporate Financial Performance (CFP): literature review approach, Elixir Financial Management 46, 8404–8409.
  • Ruhaya, A., & Nuraida, M. R. (2013). CSR Reporting by Government Linked Companies and their Corporate Attributes. Australian Journal of Basic and Applied Science 7(4), 163-171.
  • Servaes, H., & Tamayo, A. (2013). The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness. Management Science, 59(5), 1045–1061.
  • Susan Tam, (2007). CSR is more than philanthropy says Zarinah. The Star Online. Retrieved from https://www.thestar.com.my/business/business-news/2007/08/24/csr-is-more-than-philanthropy-says-zarinah/ (24.12.2018)
  • Sadou, A., Alou, F. & Laluddin, H. (2017). Corporate Social Respomsibility Disclosures in Malaysia. Evidence from large companies. Social Responsibility Journal 13(1), 177-202.
  • Stuart L. Gillan and Laura T. Starks. (2003). Corporate Governance, Corporate Ownership,and the Role of Institutional Investors:A Global Perspective. Working paper series. Retrieved from http://webkuliah.unimedia.ac.id/ebook/files/gillan(inst-investors).pdf (Accessed 30.12.2018)
  • Sandberg, J. (2011). Changing the world through shareholder activism. Etikk I Praksis - Nordic Journal of Applied Ethics, 5(1), 51-78.
  • Sparke, R., & Cowton, C. J. (2004). The Maturing of Socially Responsible Investment: A Review of the Developing Link with Corporate Social Responsibility. Journal of Business Ethics, 53(1). 45-57.
  • Sarina, O., & Borges, W. G. (2015). Shareholder Activism in Malaysia: Is it Effective? Procedia-Social Behavioral Sciences. 172(27). 427-434. The Malaysian Reserve. (2017). Mandatory sustainability reporting poses a challenge for the first timers. Retrieved from https://themalaysianreserve.com/2017/04/03/mandatorysustainabilityreporting-poses-challenges-for-first-timers/ (Accessed 30.12.2018)
  • Thomas, R., & Cotter, J. (2007). Shareholder proposals in the new millennium: Shareholder support, board response, and market reaction. Journal of Corporate Finance, 13(2-3), 368-391.
  • Teng, L. J. (2016). It’s time for more shareholder activism. The Edge Financial Daily. Retrieved from https://mswg.org.my/sites/default/files/-8779.pdf (Accessed 1.1.2019)
  • Welker, M. & Wood, D. (2011). Shareholder Activism and Alienation. Current Anthropology 52(3), 57-69.
  • Yun, T. Z. (2018). The Impact of Shareholder Activisim. The Edge Malaysia. Retrieved from http://www.mswg.org.my/sites/default/files/The%20Impact%20Of%20Shareholder%20Activism.pdf (Accessed 1.1.2019).
There are 43 citations in total.

Details

Primary Language English
Journal Section Research Articles
Authors

Muhammad Aiman Awalluddin 0000-0002-3409-1153

Publication Date March 23, 2020
Submission Date February 26, 2019
Published in Issue Year 2020 Volume: 7 Issue: 1

Cite

APA Awalluddin, M. A. (2020). HİSSEDAR AKTİVİZMASI VE MALEZYA’DA KURUMSAL SOSYAL SORUMLULUK - ACTIVISM AND CORPORATE SOCIAL RESPONSIBILITY IN MALAYSIA. Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty, 7(1), 1-19. https://doi.org/10.30798/makuiibf.532662

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