Business Of Maxis Berhard Management Essay

According to McElhaney, CSR is a business strategy that is integrated with core business objectives and core competencies of the firm, and from the outset is designed to create business value and positive social change and is embedded in day to day business culture and operations. The most researched and proven financial benefits of effective strategic CSR can be found in the areas of human resource and talent management, reputation and branding and operational cost savings.

CSR is the continuous commitment by businesses to behave ethically and contribute to the economic development while improving the quality of life in the workforce as well as the society at large. CSR is believed to have a positive relationship with a company’s goodwill and also be a means to a more profitable operation. (Lenguyen, 2011)

Why are profit-oriented companies interested in corporate social responsibility? According to (Mohamed & Sawandi, 2007), only providing for the needs of a customer is not sufficient. Some truly enlightened companies always ensure that their interest is in line with societal needs and they will take this into consideration in their business planning.

The International Organization for Standardization (ISO) describes corporate social responsibility as a balanced approach for organizations to address economic, social and environmental issues in a way that aims to benefit people, communities and society. (Leonard & McAdam, 2003)

According to Richardson ,et al., (1999), CSR behaviours can be defined as discretionary actions undertaken by companies that are intended to advance their social issues. Joyner, et al., (2002) noted that CSR are categories of economic, legal, ethical and discretionary activities of a business entity as adapted to the values and expectations from society. They also added that, CSR are the basic expectations of the company regarding initiatives that take the form of protection to public health, public safety, and the environment. In this concept, they explained that values and ethics influence the extent of a corporation’s perceived social responsibility that is influenced by societal activities, norms or standard.

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In today’s world, CSR can be defined as regards to all aspects of business behaviour so that the impacts of these activities are incorporated in every corporate agenda (Orgrizek, 2001; Coldwell, 2001)

Factors Influencing CSR

The primary role of business is to produce goods and services that society wants and needs. According to Coldwell (2001), a business only contributes fully to a society if it is highly efficient, highly profitable and has socially responsible agendas. Based on the literatures definition of CSR, CSR behaviours are not constant over time or space. Social expectations and pressure for specific types of CSR have varied over time and are contingent on the nature of the company (Richardson, Welker & Hutchinson, 1999). A study by Windsor (2001) showed that social responsibility is achieved when the corporation conforms to the prevailing norms and expectations of social performance in a given society.

CSR is also influenced by the ethics of the firm or organizations. Ethical motivation can guide the business or organization to do the right thing without any external pressure or governmental constrain. Joyner, Payne & Raiborn (2002) contended that people believe businesses are amoral, when in fact they generally embrace the values of ethics in doing business. They cited several factors that serve to legitimize their position and one of the factors is society, which expects moral behaviour of the business when it cries out against immoral labour practices or environmental policies.

According to Ogrizek (2001), business leaders are starting to acknowledge some of the market benefits and competitive advantages for companies who put into place a comprehensive CSR policy. This means that a business with a strong stance in corporate responsibility will attract top talent and reputation.

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Maxis Corporate Social Responsibility

Any corporation’s business goal is to provide value and incentive to its shareholders.

Therefore, profit-oriented corporations or organizations are not a charitable organization although sometimes it is in their direct interest to support charitable activities. Furthermore, sometimes corporations or organizations carry out certain activities that governments should undertake, although they are not government agencies. It is beneficial for the corporations to carry out such socially responsible activities. Corporate social responsibility (CSR) is defined as categories of economic, legal, ethical and discretionary activities of a business entity as adapted to contribute to the values and expectations of society. (Joyner, et al., 2002)

CSR is also the continuing commitments by any business organization whereby they emphasize the ethical elements in their management and overall organizational structure (Richardson et. al, 1999). At the same time, companies are responsible for national economic development by improving the quality of life of the whole workforce and their families as well (Abbott & Monsen, 1979).

Maxis believe that its CSR program contributes a great amount to societal development as advances in technologies can bring direct benefit to communities. As Malaysia’s leading mobile telecommunications operator, the company is committed to supporting national aspirations on areas of education, technology and youth. (Maxis, 2012)

CSR involves various aspects such as economic factors, legal requirements, ethical orders and discretionary demands. In this high-tech era, business environments are susceptible to changes in these factors. In order to be a leading mobile telecommunication provider, each firm must be fully aware and sensitive to the impact of these factors. The effect of these factors may add to the firm’s corporate image and financial performance. (Mohamed & Sawandi, 2007)

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The Maxis Bridging Communities (MBC) was launched in 2002 with the aim of enriching communities with access to education opportunities through information communication technology. MBC has taken a firm commitment to ensure stronger and sustainable programs by developing key initiatives in:

Bridging the digital gap:

Education and development of Malaysians

Employee Volunteerism


CSR actually portrays the image of the firm itself. It shows what the company has done to fulfil its corporate duty to ensure the firm is not only good in providing the service but also plays its roles by contributing something to the community (Tilt, 1994). In order to have a good relationship with the community, the firm should do something beneficial for the community. Within the company itself, there is also a platform for social contribution especially to the employees. For example, in Maxis Communication Berhad, there are a lot of privileges that have been provided to the staff such as medical treatment, advantages in communication services, increment of salary and etc.

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