Best Practices and Guidance

2006 : ISO 26000

The Securities Commission is a member of the ISO Mirror Committee which is involved in developing ISO 26000 which is a voluntary guidance standard for the implementation of Social Responsibility (SR) related practices. This Guidance will be in line with the International Standard which serves to provide guidance to organisations on:-

  • Principles, practices and issues relating to social responsibility

  • Integrating and implementing social responsibility throughout an organisation and its sphere of influence, including its supply chain

  • Indentifying and engaging with stakeholders

  • Communicating commitments and performance related to social responsibility

  • Contribution of an organisation to sustainable development.

It promotes common understanding in the field of social responsibility and seeks to clarify the relationship between social responsibility principles and organisation governance frameworks. This guidance will be applicable to all types of organisations. The drafting of the guidance standard is still ongoing.

September 2006: Bursa Malaysia’s CSR Framework

The Bursa Malaysia CSR Framework for public-listed companies was launched on 5 Sept 2006. The CSR Framework provides a guide to Malaysian companies to develop CSR strategies as well as to communicate them effectively to stakeholders. The CSR Framework looks at 4 main focal areas for CSR practice namely, environment, workplace, community and the marketplace. The framework supports the new rules incorporated in Bursa Malaysia Listing Requirements that require reporting of CSR activities by public-listed companies in their annual report.

September 2006: Silver Book

The Silver Book is the fourth in a series under the GLC Transformation Programme. The Silver Book has three key objectives i.e to clarify expectations on GLCs’ contribution to society, to guide GLCs in evaluating their starting position in contributing to society and to provide the GLCs with a comprehensive set of tools, methodologies and processes to proactively contribute to society in a responsible manner while still creating value for their shareholders.

December 2006: Corporate Social Responsibility (CSR) Reporting

To inculcate the culture of CSR, the Prime Minister had announced in his 2007 budget speech, that public-listed companies are required to disclose their CSR activities. The Listing Requirements were subsequently amended to impose a new obligation on listed issuers to disclose their CSR activities in their annual reports. The new provisions require the disclosure of the CSR activities or practices undertaken by the listed issuer and its subsidiaries or if no such activities or practices are undertaken, a statement to that effect is to be made in the annual report.

Institutional Reforms

August 2008: UN Global Compact Network Malaysia

In August 2008, ten Malaysian firms, including major government-linked companies, have vowed to advance corporate citizenship in Malaysia as they became signatories to the world’s largest voluntary global corporate social responsibility (CSR) initiative, the United Nations Global Compact (UNGC). By participating in the UNGC, the companies join a group of key corporate leaders worldwide who recognize that stakeholders – customers, partners, investors, employees and government – prefer to support businesses that are environmentally sensitive, ethical and trustworthy as well as those that play an active role addressing critical development challenges such as global poverty and climate change.

November 2006: Institute of Corporate Responsibility Malaysia

The Institute of Corporate Responsibility, Malaysia was established to:-

  • help build and strengthen existing national capabilities in CSR through capacity building, research, education and sharing of best practices;

  • encourage interaction among companies to network and identify opportunities for improvements and collaboration; and

  • foster greater inter-institutional co-operation to address national issues and needs through conference and international forums

The organisation comprises a Business Panel consisting of government linked companies, local Public Listed Companies and multi-national companies and an Academic Panel. The SC is one of the centre’s panel advisers.