Does Market Competition Motivate Corporate Social Responsibility? Insight from Malaysia

Maria, Kontesa and Brahmana, Rayenda Khresna and Gesti, Memarista (2020) Does Market Competition Motivate Corporate Social Responsibility? Insight from Malaysia. Jurnal Ekonomi Malaysia, 54 (1). pp. 167-179. ISSN 0126-1962

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This study aims to examine the role of product market competition on Corporate Social Responsibility (CSR) by engaging altruism and utilitarianism views. Using dynamic Generalized Method of Moment panel regression for 524 Malaysian non-financial industry listed companies from 2010 to 2016, we find that firms in a more competitive environments increase their CSR activities. We interpret these results as evidence that CSR is strategically chosen by firms not for the societal benefits, but more on business as usual; a support for utilitarianism view, i.e profit maximizations. It explains the rationale that CSR activities are less employed in a more monopolistic or oligarchic industry. Practically, this study suggests that the CSR activities are forced by market competition. Firms in a more competitive market need CSR as their non-market strategies.

Item Type: Article
Uncontrolled Keywords: Product market competition; product differentiation; market size; market concentration; corporate social responsibility, unimas, university, universiti, Borneo, Malaysia, Sarawak, Kuching, Samarahan, ipta, education, research, Universiti Malaysia Sarawak
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Faculties, Institutes, Centres > Faculty of Economics and Business
Depositing User: Brahmana
Date Deposited: 26 Nov 2020 07:52
Last Modified: 01 Apr 2021 08:43

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