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Jurnal Ekonomi Malaysia

54 (1) 2020 167 – 179

Does Market Competition Motivate Corporate Social Responsibility? Insight from Malaysia
Adakah Persaingan Pasaran Memotivasikan Tanggungjawab Sosial Korporat? Pengalaman Malaysia

Head of Department
Accounting Program
Fakultas Ekonomi dan Bisnis
Universitas Widya Dharma
Pontianak
INDONESIA

mariakontesa80@yahoo.com

Faculty of Economics and Business
Universiti Malaysia Sarawak
MALAYSIA

raye_brahm@yahoo.com

Faculty of Economics and Business
Universitas Kristen Petra Surabaya
INDONESIA

E-mail: gesti@petra.ac.id

Abstract

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.

Keywords

corporate social responsibility; market concentration; market size; product differentiation; product market competition
http://dx.doi.org/10.17576/JEM-2020-5401-12
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Kontesa, , Brahmana, , & Mail, (2020). Does Market Competition Motivate Corporate Social Responsibility? Insight from Malaysia. Jurnal Ekonomi Malaysia, 54(1), 167–179. http://dx.doi.org/10.17576/JEM-2020-5401-12

@article{kontesa2020does,
  title={Does Market Competition Motivate Corporate Social Responsibility? Insight from Malaysia},
  author={Kontesa, Maria and Brahmana, Rayenda Khresna and Mail, Gesti Memarista},
  journal={Jurnal Ekonomi Malaysia},
  volume={54},
  number={1},
  pages={167—179},
 

year={2020},
}

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