Does market competition motivate corporate social responsibility? Insight from Malaysia
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...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2020
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| Online Access: | http://journalarticle.ukm.my/15597/ http://journalarticle.ukm.my/15597/1/jeko_54%281%29-12.pdf |
| _version_ | 1848813836666142720 |
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| author | Kontesa, Maria Brahmana, Rayenda Khresna Memarista, Gesti |
| author_facet | Kontesa, Maria Brahmana, Rayenda Khresna Memarista, Gesti |
| author_sort | Kontesa, Maria |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-15T00:24:31Z |
| format | Article |
| id | oai:generic.eprints.org:15597 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:24:31Z |
| publishDate | 2020 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:155972020-11-09T03:09:26Z http://journalarticle.ukm.my/15597/ Does market competition motivate corporate social responsibility? Insight from Malaysia Kontesa, Maria Brahmana, Rayenda Khresna Memarista, Gesti 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. Penerbit Universiti Kebangsaan Malaysia 2020 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/15597/1/jeko_54%281%29-12.pdf Kontesa, Maria and Brahmana, Rayenda Khresna and Memarista, Gesti (2020) Does market competition motivate corporate social responsibility? Insight from Malaysia. Jurnal Ekonomi Malaysia, 54 (1). pp. 167-179. ISSN 0127-1962 https://www.ukm.my/fep/jem/content/2020.html |
| spellingShingle | Kontesa, Maria Brahmana, Rayenda Khresna Memarista, Gesti Does market competition motivate corporate social responsibility? Insight from Malaysia |
| title | Does market competition motivate corporate social responsibility? Insight from Malaysia |
| title_full | Does market competition motivate corporate social responsibility? Insight from Malaysia |
| title_fullStr | Does market competition motivate corporate social responsibility? Insight from Malaysia |
| title_full_unstemmed | Does market competition motivate corporate social responsibility? Insight from Malaysia |
| title_short | Does market competition motivate corporate social responsibility? Insight from Malaysia |
| title_sort | does market competition motivate corporate social responsibility? insight from malaysia |
| url | http://journalarticle.ukm.my/15597/ http://journalarticle.ukm.my/15597/ http://journalarticle.ukm.my/15597/1/jeko_54%281%29-12.pdf |