Corporate Social Responsibility Challenges of Malaysian NGOs: Is It Elusive?

Abstract

Corporate social responsibilities (CSRs) with social, economic, and environmental elements become of high demand in the private, public, as well as third-world sectors or so-called non-governmental organizations (NGOs). These sectors have their own identity in carrying out the CSR projects. However, the CSR initiatives to be implemented by the NGOs promised challenges due to the NGOs' identity in justifying human rights that remains dissimilar with corporation or fund provider's identity to maximize the profit with less concern on the humanitarian issues leading to tension for both parties to have CSR project alliances. NGOs face extreme difficulty to raise funds from the private sector due to their ideology in influencing the social movements that might harm society. Also, the fund raised by the NGOs for CSR projects are somehow misused by this party for its own self-interests and leads to an accountability issue. An NGO is seen as a key player in CSR projects but still there is an issue of legitimacy and mistrust amongst stakeholder groups. Underlying to these issues, this study aims to explore the challenges faced by NGOs in regards to the CSR initiatives that have been announced by the United Nations Global Compact (UNGC) to be used widely and harmoniously by all sectors of the world and its future directions to successfully implement CSR in its own style of leadership. Therefore, the involvement of NGOs in CSR initiatives can be effectively employed with government intervention on economics development programmes in alleviating poverty which becomes a central issue highlighted in many countries nowadays. Extensive rules and regulations from the government towards NGOs are embedded within the CSR project developments of NGOs and are necessary in reducing the discrepancies in the roles that NGOs play.