The Impact of Corporate Social Responsibility on Long-Term Sustainability in Malaysian Banking

Abstract

In order to determine whether or not there was a connection between the acts that were associated with Corporate Social Responsibility (CSR) and the long-term viability of the banking industry in Malaysia, the purpose of this research was to examine the link. In recent years, there has been a rise in the amount of focus that has been placed on the commitment of financial institutions to ethical, social, and environmental duties. This emphasis has been increasing over the course of several years. This is due to the fact that financial institutions play a big part in fostering economic development, which is the reason why this is the situation that exists. The purpose of this study is to analyze the many ways in which CSR activities have an impact on a variety of domains, such as the confidence of stakeholders, compliance with regulatory requirements, risk management, and the reputation of specific brands. When it comes to maintaining development and resilience over an extended period of time, it is absolutely necessary to possess all of these attributes. The findings of the study indicate that there is a positive association between the implementation of strategic CSR and the attainment of sustainable banking performance. This correlation was found to be significant. The identification of this link was made possible by the analysis of qualitative and quantitative data obtained from well-known economic institutions in Malaysia. The findings suggest that financial institutions that engage in proactive incorporation of corporate social responsibility into their core operations are in a better position to deal with economic uncertainty, to fulfill the expectations of stakeholders, and to make a significant contribution to the goals of national development. This is the conclusion that can be drawn from the findings. The purpose of this paper is to provide legislative ideas and strategic insights with the objective of increasing corporate social responsibility frameworks in order to achieve long-term sustainability in Malaysia's banking firm. Therefore, the article concludes with this objective.