Why is corporate Malaysia so silent

As Malaysia stands on the cusp of a huge transformation, it is strange that its corporate citizens are keeping quiet and many even deem it right to 'stay out of politics'.

But whoever governs, the BN or Pakatan Rakyat, a seismic change is happening in Malaysian society and it behoves the corporates to also make a stand. Not on which party to support. But what sort of values, direction and culture does it want to see unfold.

Corporate Malaysia owes this duty to the people who work for it, to the customers who patronise it, to the suppliers who support its businesses and to fellow citizens it lives side by side with.

What is CSR really about

So, has CSR gone wrong in Malaysia? What is the Malaysian corporations’ understanding of corporate social responsibility (CSR)? And likewise what does the government make out of CSR?

From the inventory of the so-called ‘CSR events’ in the country – both from the public and private sectors, donations, some charity do, an event here and an event there seem to mark the CSR initiative of an organization together with the hyped media publicity.

It is not rare to find an organization’s CEO joining his department heads and handing out oranges by the highways or toll booths during a festive celebration. We get another giving out some cash donations with a huge mock cheque presentation and reported in the papers the next day.

Some will do a ‘Go Green’ initiative when you get the CEO or Ketua Jabatan planting a tree sapling in some Taman. Or a gotong royang cleaning clogged drains. A visit to the orphanage during festive times, giving out ‘ang pows’ to deserving and needy children and at old folks homes, etc are other so-called CSR fulfillments by organizations in Malaysia.

The police have their own version with fishing competitions with the local community. CSR has become a commonly tagged ‘public relations’ exercise for all.

It is indeed very unfortunate that Malaysian organizations and their captains have failed to understand and comprehend the meaning, reason and necessity for CSR.

Not about charity or kindness

CSR is not charity. It is not an act of kindness or a show of caring. It goes far beyond those limitations. Foremost, CSR is anchored in the fundamental philosophy of returning to society what rightfully belongs to its citizens. Period.

In this century, organizations and individuals like Shell, Bruno Manser Foundation, Bill Gates and Barack Obama and many others have demonstrated what CSR should be. They have given back to society what they tapped from society. It is not about parting with some of your excess profits. It is about giving back what society gave you by enabling you to conduct your affairs and or business successfully.

CSR is about becoming an integral part of that society you belong to by association of your service or business. An integral part here encompasses the social, political, economic and environment parameters that embraces all of society. Hence, when you are committed to fulfilling your CSR, you become a role model spearheading the transformation of the society you operate within in any of your chosen parameters encompassing society.

You can take up social, political, economic or environmental transformation. The rational is very straight forward. When the society within which you operate has been the instrument of your success – be it in service or business, you return your gains back to that society for its own and onward progress.

And as that society progress – given your adequate CSR role, the society is being enabled to continue to keep your service or business advancing to greater heights.

It's about responsibility to society

Many organizations – including political parties, think that by giving people a job, some good salaries to favored sections, discounts here and there, some privileges to a chosen few, and coupled with an annual publicity of handouts or charity do, they have fulfilled their CSR role. They are grossly misled as such gestures only mean they are robbing the very society that gives the organization a purpose.

This brings to mind the many billboards that the BN government is so fond of erecting. It is that all too common message “Satu lagi Projek oleh BN” that we can easily recognize. Strictly speaking that again is not CSR. The society is not lucky to get that “Satu lagi Projek”. You owe it to the society for your existence and progress is owing to their support. Your role is to return to them the very trust they placed upon you. A billboard with the words “Yet another project that rightfully belongs to the rakyat” makes better CSR sense.

The advent of the CSR qualifier that today even has to be featured and accounted for in a transparent manner in the Annual Reports (or report cards) of organizations is a clear indication of the road ahead. CSR is a must. CSR is an ethical and categorical imperative. It is about being accountable to society. Being an integral part of humanity’s existence.

CSR is not “I will give what I will give”, or “it is all up to me” or even “see how generous I am”. Profits (monetary or power retention) are not meant to enrich the owner-manager at the expense of the society. The profits are to be returned to the society for the society’s onward progress and development.

Hopefully leaders of organizations – corporate and government will have the opportunity to read this clarification on CSR and subsequently amend their erroneous path so that the Malaysian society will get back what rightfully belongs to them and the future generations to come.

Otherwise we will only continue to witness individuals building their castles and stashing away their golden nuggets in far away havens while the society of the nation erodes to poorer levels of existence.

Let us all rise and be a part of the new world where CSR is an indispensable instrument for society’s progress and development.

- J. D. Lovrenciear is a reader and contributor to Malaysia Chronicle