Corporate Social Responsibility In Annual Reports Accounting Essay
Nowadays, most companies are looking seriously towards the issues that related to non-financial information disclosure in annual reports includes the issues of Corporate Social Responsibility (hereinafter CSR). Although, this reporting is a voluntary exercise in many parts of the world including Malaysia, New Zealand and United Kingdom, but it still regarded serious by many parties. Even, in Asia, CSR practices indicate a rising in the number of companies that choose to disclose their non-financial indicator in annual reports. Thus, this paper is conducted to find what are the factors significantly influence of CSR disclosure among Malaysian listed companies. Otherwise, this paper also, to observe on CSR studies in Malaysia, New Zealand and United Kingdom, which will be discussed in literature review. Since, this research not yet carried out, so the previous finding will be used to show relationships between the dependent and independent variables. When, this study is conducted,  the methods of research that will be used are the development hypotheses, data collection, data analysis and measurement and instrumentation. Hopefully, this study will give useful information and gain understanding to all parties about the factors which are influencing CSR disclosure.
1.0 BACKGROUND OF THE STUDY 
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Nowadays, most companies are looking seriously towards the issues that related to non-financial information disclosure in annual reports includes the issues of Corporate Social Responsibility (hereinafter CSR). CSR is a concept describing the communication of social and environmental effects of a company's economic actions to particular interest groups within society and to society at large.
According to Vilanova, Lazano and Arenas (2009), CSR is reference that to shed light on the role business should play in society and the duty to create wealth in ways that avoid harm to protect or enhance society responsibility (Steiner, 2009). There are many perspectives about CSR such as social performance, corporate governance, stakeholder management and others.
CSR is the task of a corporation to generate wealth in ways that avoid harm to protect or increase societal assets. The term is a modern one. It did not enter common use until the 1960s, when it appeared in academic literature. Even as early as the late 1960s, work has been written on the amount of social disclosures within the annual reports of companies.  It frequently goes by other names, including social reporting, corporate citizenship, stakeholder management and sustainability. Whatever it is called, its essential purposes are to control and legitimize the exercise of corporate power.
According to Vilanova, Lazano and Arenas (2009), CSR can be defined as the voluntary integration of social and environmental concerns in to business operations and in to their interaction with stakeholders.  The above mentioned Green Paper of the European Union proposes a different classification, which groups CSR-related initiatives in two main categories are internal dimension and external dimension (Maccarrone, 2009). 
CSR is a company's commitment to operating in an economically, socially and environmentally sustainable manner whilst balancing the interests of diverse stakeholders. Many companies are even looking for CSR commitments to find appropriate partners and forge business links (Bursa Malaysia). To summarise, a CSR practising company should strive to obey the law, make a profit, be ethical and provide societal value and accountability.
There are many purposes of CSR can be approached to interpretation why companies should do CSR reporting, including management control purposes and accountability purposes. CSR for the purpose of management control is designed to support and facilitate the achievement of an organization's own objectives. Because, social accounting is concerned with substantial self-reporting on a systemic level, individual reports are often referred to as social audits. Organizations are seen to benefit from implementing social accounting practices in a number of ways, e.g. to increase information for decision-making, more accurate product or service costing, to enhance image management and public relations and other.
While, CSR for accountability purposes is designed to support and facilitate the pursuit of society's objectives. These objectives can be manifold but can typically be described in terms of social and environmental desirability and sustainability. In order to make informed choices on these objectives, the flow of information in society in general, and in accounting in particular, needs to cater for democratic decision-making. Society is seen to profit from implementing a social and environmental approach to accounting in a number of ways, e.g. the honouring stakeholders' rights of information, balancing corporate power with corporate responsibility, increasing transparency of corporate activity and identifying social and environmental costs of economic success.
The higher disclosure quality can be formally exercised through the meeting of mandated disclosure requirements of the listing exchange. In informal way, higher demand for disclosure from the investors and increased scrutiny of the firms report would enhance the disclosure quality of a firm.
According to Ernst & Ernst (1978), the themes of CSR are divided into 5 types, namely:
Environmental; that explain company's activities that will have an impact on the environment.
Human resources; to be principally a task carried out by the government and public training organizations, in raising productivity and providing the professional, management and technical skills needed for the growth of the economy.
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Energy; that provide information on how companies generate their energy source specifically if their efforts conform to environmentally friendly measures.
Community involvement; involves activities carries out that relates to the community.
Products; the speeding up of the introduction of new products and services in a cost-effective manner is of particular urgency.
These were chosen as they are able to capture the areas that fall under CSR. CSR therefore is made up of and defined by these themes.
In Asia, CSR practices indicate a rising in the number of companies that choose to disclose their non financial indicator in annual reports. According to Nazli (2007), the study shows a higher percentage of companies making some CSR disclosure in annual reports (94.3%) among as compared to a previous study by Andrew et al. (26%) (1990), showing that more companies managers aware of the CSRs' concept. 
Companies may also use the annual report as a marketing or communication tool for voluntary disclosure of non-financial information to their various stakeholders, including shareholders, employees, customers, suppliers, media and the government, and to develop a particular brand image for the organisation (David S. Waller, 2005). 
The disclosure of CSR in companies whether in Asia or non Asia companies may be determined by many factors such as firm size, type of industry, level of leverage, government affiliate, cultures, awards and other. Thus, this study is conducted to investigate the factors which are influencing the CSR disclosure among Malaysian listed companies and also, to observe on CSR studies in Malaysia, New Zealand and United Kingdom, which will be discussed in literature review.
Generally, this study seeks for the level of CSR disclosure among Malaysian listed companies. Besides that, this study also wants to know the possible factors which are influencing the CSR disclosure among Malaysian listed companies. Thus, the main research questions would be addressed in this study are:
What is the extent of CSR disclosure?
What are the factors that influencing CSR disclosure among Malaysian listed companies?
The objectives of this paper are to gain a deeper knowledge and understanding of the factors influencing the CSR disclosure among companies. Specifically, this study is trying to achieve these research objectives such as:
To examine the level of CSR disclosure.
To identify the factors that influencing CSR disclosure among Malaysian listed companies.
To examine whether firm size, industry type and ownership structure do influence the level of CSR disclosure among Malaysian listed companies.
Contribution of Study
Contribution to publics: This study will give useful information to public regarding a company's activities that related to the community.
Contribution to knowledge: This study will expose the situation of the current level of the CSR disclosure among Malaysian listed companies. Furthermore, it can explain and gain understanding on the factors which influencing the CSR disclosure among Malaysian listed companies.
2.0 LITERATURE REVIEW
Nowadays, most companies are more concern to fulfill their social responsibility towards society. Therefore, it encourages the companies to disclose non-financial information details in their annual reports. Most of the empirical studies on social responsibility disclosure (SRD) have focused on the annual report, which is considered to be most important tool used by companies to communicate with their stakeholders (Branco, M.C., Rodrigues, L.L, 2008). Even though, there is some issues may be disclosed through new releases, advertisements and commercials, proxies and corporate publications, but it is not always enough.
Such disclosure in annual reports would not only increase the credibility of the information but also extend the audience for the message. Furthermore, companies also use the annual report as a marketing or communication tool for voluntary disclosure of non-financial information to their various stakeholders, including shareholders, employees, customers, suppliers, media and the government and to develop a particular brand image for the organization (David, Roman, 2005).
According (Nazli, 2007) CSR disclosure has received an increasing amount of attention in both the academic and business fraternities. Such disclosure encompasses the provision of information on human resource aspects, products and services, involvement in
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community projects/activities and environmental reporting. Thus, the role of a business today not only classified to profits element but also include of CSR and accountability. 
There are two kinds of benefits, why companies consider to engage in CSR activities and disclosure: first, companies expect that having good relations with their stakeholders, and second, to conform to stakeholder norms and expectations about how operations should be conducted (Branco and Rodrigues, 2008).  It also can be as a tool to improve continuous communication and public responsibility between business and community in order to create an engagement to achieve a sustainable social, environmental and economic success.
According to O. Idowu and A. Towler (2004), CSR reports have put forward some perceived benefits which an organization may derive from its provision i.e.: increased customer loyalty, more supportive communities, the recruitment and retention of more talented employees, improved quality and productivity and the avoidance of potential reputational risks which may arise from environmental incidents. Other benefits are by disclosing CSR include improved reputation, employee satisfaction, enhanced risk management due to a wider audiences and innovation improvements.
Other than that, the disclosure of voluntary CSR also involves stakeholder theory, legitimacy theory and perspectives from political economy accounting theory.  Political
economy accounting theory analyses exchanges in whatever institutional framework these exchanges occur and analyses the relationships between social institutions such as government and law and the economy i.e. the system of producing and exchanging goods and services (Jackson 1982 in Gray et al. 1995 p.52).  Under stakeholder theory, companies not only accountable to its shareholders but should also balance a multiplicity of shareholder interests that can affect by the actions of the firm (Freeman 1984 in Matten et al. 2003). Legitimacy theory is relevant in explaining why companies make voluntary CSR disclosure; they aim to establish congruence between the social values associated with or implied by their operations and the social norms or acceptable behavior in the larger social system (Dowling & Pfeffer, 1975 in Deegan, 2002). Legitimacy is a social judgment of appropriateness, acceptance and desirability (Zimmerman and Zeitz, 2002). Azlan, A. Susela, S.D (2008) reported that not easy to find the suitable theory to explain a phenomena on CSR, thus in this study institutional theory is used as the exploratory theory, where it provide a relatively similar explanation to legitimacy theory.
Additionally, CSR reporting is a total voluntary exercise in many parts of the world, including Malaysia, New Zealand and United Kingdom. However, in Malaysia, Malaysian Accounting Standard Board (MASB) has incorporated standard that explicitly encourage greater disclosure of social-related information. Para 10 of Financial Reporting Standard (FRS) 101: Presentation of Financial Statement stated that:
"Many enterprises present, outside the financial statements, additional statements such as environmental reports and value added statements, particularly in industries where environmental factors are significant and where employees are considered to be an important
user group. Enterprises are encouraged to present such additional statements if management believes they will assist users in making economic decisions."
CSR Studies in Malaysia
One of the earlier published CSR studies in Malaysia was conducted by Teoh and Thong (1984) who found that the social involvement by the companies were more extensive compared to their reporting. This is a consequence of the perception that there is no tangible benefit from extensive disclosure in the annual report and further, disclosure is not required by legislation (Amran, A. and Susela, D., 2007).
However, Nazli (2008) studied the CSR disclosure and also, to examine the influence of ownership structure on CSR disclosure in Malaysian annual reports by the larger and actively traded stocks on the Bursa Malaysia. This study observed 87 annual reports of non-financial companies in 2001, which the selected companies were downloaded from the Bursa Malaysia website.
The finding revealed that the overall CSR status for Malaysia shows a higher percentage of companies making CSR disclosure in annual reports i.e. 94.3% as compared to a previous study by Andrew et al. (1989) i.e. 26%. The low level of CSR from study by Andrew et al. (1989) may be due to the fact that to disclose such form of social responsibility is voluntary and not mandatory. Thus, most of companies studied disclosed the CSR on a voluntary basis. However, results from Nazli (2007) implying that more Malaysian managers are aware of the usefulness concept of CSR that any activities involving society must be disclosed and audited. Even, the present results show that ownership structure is an important factor influencing CSR disclosure.
Another study conducted by Amran, A. and Susela, D. (2008) is specifically investigates the influence of the government and foreign affiliates,  particularly Multi National Companies,  on the development of CSR in Malaysian annual reports for the year 2002/2003. It considers the background of the Malaysian environment in order to provide the justifications for the role of the government and foreign affiliates. Thus, this study contributes to the CSR literature particularly in the context of economies where governments play a significant role in promoting economic development. It provides empirical evidence of the influence of government and foreign affiliates. It also adds to the literature by explaining the phenomenon from the institutional perspective and its relevance to a developing economy. In additional, this study also explains the influence exerted by these two variables from the perspective of institutional theory and examines these variables using data from sampled Malaysian companies. This study demonstrates that institutional theory is an appropriate framework to explain CSR in the context of a developing country.
The researcher used a sample of public listed companies particularly Multi National Company, on the Bursa Malaysia by sectors. Thus, a total of seven sectors emerged from 257 companies and used i.e. consumer product (52), industrial product (128), construction/infrastructure project companies (16), trading and services/technology (55), finance (0), property/hotel (2) and plantation/mining (4). The findings based on regression analysis show the evidences on the impact of government influence on CSR. However, the impact of foreign affiliation variables is not evident. Perhaps, institutionalization by the government's aspirations is the most appropriate description for Malaysian CSR practice.
CSR Studies in New Zealand
Hackston and Miles (1996) conducted the research on the determinants of social and environmental disclosures in New Zealand companies. The purposes, who the researchers state in this study are to provide an up-to-date description of New Zealand companies' corporate social disclosure (CSD) practices, to examine some potential determinants of social disclosures in New Zealand companies and to examine the research analysts' choice of measurement technique of CSD on any relationships found.
However, the researchers found only two surveys by Davey (1982) and Ng (1985) have provided some descriptions of CSD in New Zealand. The studies by Davey and Ng are about "Corporate social responsibility disclosure in New Zealand: an empirical investigation" and "Social responsibility disclosures of selected New Zealand companies for 1981, 1982 and 1983". 
In this study, the sample were selected includes annual reports from the largest 50 companies listed on the New Zealand Stock Exchange as at 31 December 1992. Whereby, the top 50 is based on a size ranking of market capitalization.
The data analysis technique chosen to conduct the research and it was found that New Zealand companies make most social disclosures toward human resources, environment and community themes. In addition, the vast majority of the disclosures tend to be declarative and giving positive information for users. The amount of social disclosure made by New Zealand companies averaged about three-quarters of an annual report page. However, New Zealand companies still make lower social disclosures on average, compared with US and UK â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦
companies' voluntary disclosures. This caused, only a little social disclosure is mandated by legislation of New Zealand and all the classified disclosures are treated as voluntary.
CSR Studies in United Kingdom
Study in the UK was conducted by O. Idowa and A. Towler (2004), which, the researchers noted that an increasing number of UK companies of all sizes are finding that there are real business benefits when a company is perceived by the general public as being socially responsible. Currently, about 80 per cent of FTSE-100  companies provide information about their environmental performance, social impact (DTI, 2002). While, in the UK, 61 percent of small and medium sized companies were involved in local community matters (MORI survey).
The importance of CSR was stated by the British government, whereby the government takes this issue very seriously. There are four key areas of CSR that taken attention by UK government, namely promoting good practice, supporting work to demonstrate the business case, promoting international action on CSR and joining up action across government (DTI, 2001). Even, the Association of British Insurers (ABI) has issued guidelines setting out the disclosures of CSR, whereby institutional investors expect to be included in the annual reports of listed companies. Any listed companies that fail to comply with these guidelines will experience difficulties in obtaining institutional investors' votes adopting their reports.
Thus, from this study, the 17 companies from 9 different industries in UK were taken by researchers i.e.: Banking (4), Building (1), Food manufacturing (1), Insurance (1), Leisure (1), Oil and gas (4), Power and water (1) Retailers (2), Telecommunications (2). A summary of the results shows that CSR reporting in the UK is still in its infancy. This is because some of the companies appear to use the report as a public relations exercise and some appear to do just to be seen to comply. Therefore, some mandatory requirement needed for CSR disclosure in UK. From this study, the researchers believe that UK companies are making reasonable and possible efforts to disclose information about their CSR activities.
Previous studies have shown the relationships between firm size and CSR disclosure (Maccarrone, 2009; Branco and Rodrigues, 2008; Nazli, 2007; Gruning, 2007; Hackston and Milne, 1996). Particularly, firm size appears to be an important independent variable and there is also strong evidence to CSR disclosure. The legitimacy theory contains arguments for a company size relationship. However, legitimacy theory was inadequate to explain the differences in results due to country of origin (Adam et al., 1998).
Therefore, company size is one of significant factors in explaining the extent of CSR besides director and government ownership. The larger companies having more resources engaged in social activities (Nazli, 2007). The main findings of study on New Zealand, which investigate factors influencing CSR disclosure, were that company size and industry type were significantly associated CSR disclosure (Hackston and Milne, 1996).
In addition, larger companies undertake more activities, make a greater impact on society, have more shareholders who might be concerned with social programmes undertaken by the company, and the annual report provides an efficient means of communicating this
information (Hackston and Milne, 1996; Cowen et al., 1987). And, the large firms also face higher demand for information from customers, suppliers, analysts and the general public that causes an increased pressure to disclose information. It is also more likely that larger, more visible companies will consider CSR activities and disclosure as a way of enhancing corporate reputation. Furthermore, the annual reports can be a channel whereby the company can discharge this responsibility. According to agency theory, the companies can reduce their agency costs by increasing disclosure the company information to the public.
The type of industry relates to the nature of the company's activities and has been identified as a factor to most likely, which give affect CSR practices. According to Hackston and Milne (1996), the nature of a company's industry has been identified as a factor potentially affecting CSD practices.
Industries with high public visibility, or a potentially more important environmental impact, or having less favorable public images were found to disclose more social responsibility information than their counterparts (Branco and Rodrigues, 2008).  Previous studies contend that extractive industries, whose economic activities change the environment, are more likely to disclose information about their environmental impacts than are companies in other industries. Meanwhile, the consumer-oriented companies can be expected to exhibit greater concern with demonstrating their social responsibility to the community, since this is likely to enhance corporate image and influence sales. \
According to Blacconiere and Patten (1994) and Patten and Nance (1998), that companies with more extensive disclosure in the oil and gas industry did so to manage companies' exposure to future regulatory costs. Patten (1991) and Ness and Mirza (1991) also found the similar findings, where more social disclosures were provided in high-profile and oil and gas industries. While, Hackston and Milne (1996) found that the size-disclosure relationship is much stronger for the high-profile industry companies than for the low-profile industry companies.
The importance of ownership concentration was recommended by Schleifer and Vishny (1997) as one of the key determinants of corporate governance. While, Andrews et al. (1989) found that the country of ownership may have some effect on CSD, although it is difficult to assess the reliability of this result since it appears to be confounded with company size. Other than that, the voluntary disclosure also can act as a bonding and monitoring tool to reduce agency conflicts (Jensen and Meckling, 1976) between managers and shareholders.
The study conducted by Hossain et al. (1994) is about a number of studies has found significant association between corporate voluntary disclosure (financial and non-financial information) and ownership structure. The study stated that ownership concentration has been found to be statistically significant and negatively associated with the extent of voluntary disclosure in annual reports.
However, no many researches have been done on the association between ownership structure and CSR disclosure (Nazli, 2007). An examination of the possible influence of ownership structure on CSR disclosure will not only be insightful but may contribute towards assessing the relative importance of corporate ownership on CSR practices.
Malaysia provides an interesting research avenue because of its unique business environment. One of the distinguishing features of the Malaysian business environment is government shareholdings especially in privatized entities. The privatization program was implemented by the Malaysian government in 1983. Privatized companies are not purely profit driven but were set up to achieve social objectives. One of the specific aims of the privatization project was to restructure and ensure a more equitable society. In particular, the privatization program serves as an important vehicle enhancing Bumiputra participation in the corporate sector (Nazli, 2007).
RESEARCH METHODOLOGY 
3.1 Hypotheses development
The larger companies may disclosure CSR in annual reports as part of a strategic to reduce their political and agency costs. That argued by Watts and Zimmerman (1978), which the larger firms are more visible in the public eyes and more politically sensitive and tend to receive more attention from the public and are under greater public pressure to exhibit social responsibility (Cowen et al., 1987). In addition, Haniffa and Cooke (2005) found that the company size to be significant and positively associated with the extent of CSR disclosure. From a theoretical point of view, firm size is expected to be positively associated with a higher disclosure level (Ahmed and Courtis, 1999). Thus, the company size has a usually positive correlation on the number and relevance of CSR disclosure. Therefore this study's hypothesis is as follows:
H1: There is a positive relationship between company size and CSR disclosure in annual reports.
Companies in certain types of industries may face different degree of pressure to disclosure certain type of information because of competitive reasons (Verrecchia, 1983). Therefore, Patten (1991) found evidence consistent with the hypothesis that companies in high profile industries such as oil and gas industry disclosed significantly more social information in their annual reports.  A similar observation was also reported by Hackston and Milne (1996) in their study on New Zealand companies. It is expected that companies in highly competitive industries will disclose more CSR information in their annual reports. While, consumer-oriented industries can be expected to exhibit more social disclosure to enhance their corporate image among market consumers, which in turn influences the amount of sales generated (Cowen et al., 1987). Thus, the second hypothesis of the study is as follows:
H2: Type of industry is positively influence the level of CSR disclosure in annual reports.
Nazli (2007) found that ownership structure is an important factor, in explaining the level of CSR disclosure in annual reports. However, ownership concentration has been found
to be statistically significant and negatively associated with the extent of voluntary disclosure in annual reports (Hossain et al., 1994). Thus, the third hypothesis is as follows:
H3: The extent of CSR disclosure in annual reports is negatively associated with ownership structure.
3.2 Data Collection
According to Bursa Malaysia, there were 857 companies listed in the main board of Bursa Malaysia as at 25th February 2010. Thus, the population in this study will include all the main board companies on the Bursa Malaysia.
A sample size of 30 would be selected from all the listed companies in main board on the Bursa Malaysia. The sample of simple random sampling may used, which that ensures each elements in the population will have an equal chance of being included in the sample. Thus, all difference sectors may be used in this study including industrial products, consumer products, finance, trading and services, properties, construction, plantation, hotel and industrial product.
In this study, Malaysian company's annual report has been chosen as the reporting medium, which will be collected through secondary data. In addition, the basis of using annual report was consistent with previous research and it will save time and costs of acquiring information. These sources of secondary data can be seen as tool of communication
and besides that, information published in the annual reports possess higher credibility than other sources.
3.3 Data Analysis
Data analysis is the application of reasoning to understand the data that have been gathered. Thus, the unit of analysis will be the companies listed in the Bursa Malaysia for the years of study. The annual reports of all the listed companies on the Bursa Malaysia as at 31 December 2009 were examined. This study will use content analysis, which that the systematic observation and quantitative description of the communication's content to measure CSR disclosure. According to Weber (1990), content analysis is a research method that uses a set of procedures to make valid inferences from text. Then, to determine the association between firm size, industry type and ownership structure and CSR disclosure in annual reports, a multiple regression analysis will carried out.
3.4 Measurement and Instrumentation
Measurement for dependent variable
CSR disclosure is the dependent variable in this study. To measure CSR, the study will use the scoring method, which these approach is based on an unweighted method which that means all information were equally valued regardless of their importance or relevance to any particular user group (Cooke, 1989; and Chau and Gray, 2002). The scoring method will measure disclosure using either 1 if an item included in the checklist is disclosed or 0 if it is not disclosed. To attain the maximum score by that company, the CSR disclosure index will derived by computing the ratio of actual scores awarded (Nazli, 2007)
Measurement for Independent variables
There are three independent variables in this study. They are firm size, industry type and ownership structure:
Firm size - Firm size can be measure in a number of ways. Since there is also no prevailing theory to chose measurement (Cooke, 1991), this study uses the sales turnover as a proxy of size. The total assets, sales, total employees and capitalization also used by previous study to measure firm size.
Industry type - The industry type is divided into nine categories as grouped by the Bursa Malaysia as follows: industrial products, consumer products, finance, trading and services, properties, construction, plantation, hotel and industrial product. The type of industry involved will be divided into high profile and low profile industries. This study chooses to divide the type of industry into categories based on what has been done in previous studies. Thus, industry type will be represented by a dummy variable, which the way a dichotomous (two group) independent variable is represented in regression analysis by assigning a "0" if the company is low profile and "1" if the company is high profile.
Ownership structure - Hossain et al. (1994), uses percentage of shares owned by the top ten shareholders as a proxy of ownership structure. Thus, this study uses the proportion of shares held by shareholders in annual reports to measure this independent variable.
4.0 CONCLUSION AND SUGGESTION
According to previous studies, the results showed that, disclosure of CSR whether in terms of number of companies or in terms of proportion of the annual report was found to be increase among companies. While, the factors namely firm size, industry type and ownership structure were found to influence the level of CSR disclosure. Firm size and industry type
were found to be positively affected to the level of CSR, whilst ownership structure was found to be negatively related to the level of CSR disclosure in annual reports.
The CSR is increasing the level of disclosure is minimal with an average of one page of the annual report devoted to it disclosure. This may be related to the fact that CSR falls within voluntary disclosure and regulations may be the key to increase disclosures further. Thus, level of disclosure give rise to a question whether mandatory disclosure rules are necessary to increase CSR disclosure among company?
There is clearly a need for Malaysian companies and companies from other countries to shift towards disclosing more extensive CSR information rather than just fulfilling the statutory regulations and accepted accounting standards. Companies should evolve and serve a wider audience rather than focus only audience within the organization solely.
Otherwise, to encourage socially responsible investment, two ethical funds were set up by the government of Malaysia in 2003 in promoting investment in companies which are not just profitable, but also must not be involved in tobacco, liquor and gambling as well as having socially accepted practices such as good corporate governance and environmental friendly (Yakcop, 2004 in Amran, A. and Susela, D., 2007).
In the future, the research paper on CSR should be study multiple channels of corporate communication. It is because, there is a particular company may has other different channels of communication tools to give its social contributions such as through company newsletters, websites and newspapers compared to disclosure in annual reports. Other than that, the research could focus on the quality and type of information disclosed in the annual reports or stand alone reports. Using a content analysis would allow the researchers to increase the research issue to also explain the extensiveness, quality, quantity and completeness of reporting.
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