Periodic disclosures – annual report

 

9.51​ ​Corporate social responsibility ("CSR") referred to in item (29) of Appendix 9C
(a)What is “corporate social responsibility”?
Corporate social responsibility (“CSR”) is a concept that focuses on a corporation’s behaviour and actions. CSR has been defined as open and transparent business practices that are based on ethical values and respect for the community, employees, the environment, shareholders and other stakeholders. In essence, what this means is corporations integrating socially responsible behaviour into their business operations. For instance, this can range from making charitable donations or enhancing employee welfare to aligning or modifying the corporation’s operations to ensure that it is more environmentally friendly. These are of course very limited examples as there is no singular model on how to approach CSR. Each corporation, based on the nature of their business and resources may choose to undertake the CSR activities that are more suitable for them at that point in time.
​(b)Pursuant to item 29 of Part A, Appendix 9C, listed issuers are required to set out in their annual report, a description of the CSR activities or practices undertaken by the listed issuer. Does Bursa Securities prescribe the contents of the disclosure to be made in relation to the CSR activities or practices?
No, Bursa Securities does not prescribe the contents of what the listed issuers should disclose. A listed issuer must, however, ensure that the disclosure complies with the requirements of paragraph 2.18 of the Main LR. Where a listed issuer has not undertaken any CSR activities for a particular year, pursuant to item 29 of Part A, Appendix 9C, a negative statement must be inserted.
​(c)By requiring listed issuers to disclose CSR activities in their annual reports, does it mean that Bursa Securities is making CSR activities compulsory for all listed issuers?
No, the practice of CSR is completely voluntary and at the discretion of listed issuers. The requirement for disclosure of CSR activities is for enhanced transparency and to encourage listed issuers to bear in mind CSR when undertaking their business and operations.
(d)Which part of the annual report should the CSR activities of the listed issuer and its subsidiaries be disclosed?
Bursa Securities has not prescribed any specific requirements pertaining to where the CSR statement should be located. A listed issuer may disclose the statement anywhere in the annual report so long as it is clearly set out.
(e)How can I find out more about CSR?
Further information on CSR can be found on Bursa Securities' website at www.bursamalaysia.com under the CSR Framework for Malaysian public listed corporations.