Critical Success Factors for Corporate Social Responsibility Adoption in the Construction Industry in Malaysia

Abstract

In the construction industry, corporate social responsibility (CSR) is increasingly valued as a strategic tool for business sustainable development and for addressing ethical issues. However, understanding the concept of CSR in the construction industry, and how to practice it, is limited. This study aims to explore and assess the factors critical to the successful adoption of CSR in the construction industry through the lens of critical success factors (CSFs) theory. Through a literature review, a list of potential factors that may theoretically have a major impact on CSR adoption in the construction industry was compiled as a proxy. Then, the potential factors were refined and validated by employing a Delphi technique. An expert panel of sixteen qualified Malaysian industry practitioners and academia was assembled. Results from three iteration rounds of the Delphi process depicted that successful adoption of CSR in practices depends upon eight CSFs including financial resources, top management support, managerial or internal skills on CSR, national economic growth, employees’ education and training on CSR, participation of key stakeholders in the CSR process, effective CSR communication, and organizational structure. This study contributes to the field by addressing a theme that has been covered less in literature. Knowing the CSFs for CSR adoption in advance could help the construction firms to successfully integrate CSR into business strategies and minimize the risk of failure. Policy-makers could also consider the findings when promoting the CSR agenda or development programs that adhere to the construction industry’s way forward. Although this study is particularly suited for the Malaysian context, nevertheless, the outcomes could shed some light upon the CSR initiative in other countries, since CSR adoption status in the construction industry overall does not significantly differ between countries.

Factors Inhibiting Corporate Social Responsibility Initiatives Among Construction Companies

“…Results showed that "corruption tendencies borne from lack of transparency between companies and government", "lack of CSR benefits measurement", "lack of financial resources", "inadequate support from top management" and "lack of governmental support" were the top five factors inhibiting CSR initiatives among construction companies in Nigeria. These findings are in support of findings reported in previous studies (Goyal and Kumar, 2017;Shen, Govindan and Shankar, 2015;Jean, Wang and Suntu, 2018;Zahidy, Sorooshian and Hamid, 2019;Yu, 2010;Alotaibi, Edum-Fotwe and Price, 2019;Fasoulis and Kurt, 2019).…”

“…The study of Yu (2010) considered financial resources as the main factor obstructing CSR implementation. The studies of Shen, Govindan and Shankar (2015) and Zahidy, Sorooshian and Hamid (2019) was also in support of this finding which considered lack of financial resources as the most important factor inhibiting CSR adoption and implementation. This could be that the initial spending in implementing CSR programmes scares the companies away from adopting CSR practice.…”

Cause-Related Marketing and Purchase Intention toward Team-Licensed Products: Moderating Effects of Sport Consumers’ Altruism

“…In today's competitive marketplace, corporate social responsibility (CSR) is considered a crucial part of business management for a firm to ensure its survival and sustainability. CSR has developed into an important agenda, and its scope has expanded from responsible business to strategic decision-making [1]. A strategic approach to CSR is an effective and necessary competitive tool that can allow firms to ensure their survival and sustainable growth in a competitive market environment [2].…”

The role of built environment practitioners in driving the socio-economic sustainability aspects of sustainable regeneration

“…The views expressed by the interviewees concerning the importance of CSR as a driver is corroborated by Zahidy, Sorooshian and Hamid, (2019) and Pitt et al (2009). In their works, these scholars argued that the organisations who were committed to promoting sustainability practices were adopting CSR as a way of achieving their sustainability objectives.…”