CSR practices, ISO 26000 and performance among Malaysian automotive suppliers

TLDR: In this article, the authors examined the relationship between CSR practices, ISO 26000 and corporate social responsibility performance (CSRP) among Malaysian automotive suppliers, and the results indicated that ISO26000 could be considered as a partial mediator.

Abstract: Purpose The purpose of this study is to examine the relationship between corporate social responsibility (CSR) practices, ISO 26000 and corporate social responsibility performance (CSRP) among Malaysian automotive suppliers. Design/methodology/approach For this research purpose, 400 questionnaires were given simultaneously to each Proton and Perodua automotive supplier by the researcher. In all, 288 sets of questionnaire were successfully collected, which showed a 72 per cent response rate for the 400 questionnaires distributed to Proton and Perodua automotive suppliers. In this study, the structural equation modeling (SEM) technique was utilized to perform the required statistical analysis of the data survey. To test the reliability and validity of the instruments, exploratory factor analysis, reliability analysis and confirmatory factor analysis were performed. Findings The findings indicate that the relationship between CSR practices and CSRP was positive and significant, and the relationship between CSR practices and ISO 26000 was also positive and significant. ISO 26000 has a direct positive and significant relationship with CSRP. Therefore, ISO 26000 mediates the relationship between CSR practices and CSRP. The results indicate that ISO 26000 could be considered as a partial mediator. Therefore, the impact of implementation of CSR practices on performance increases with ISO 26000 as a mediator among Malaysian automotive suppliers. Practical implications This research provides important guidelines for automotive and related companies to implement CSR practices and ISO 26000 to improve CSRP. Malaysian automotive suppliers may need to consider the measurement of CSR practices, ISO 26000 and CSRP as beneficial to their company. Based on the findings, Malaysian automotive suppliers can apply the ISO 26000 as the guideline for CSR practices to increase the CSRP. Originality/value This research makes a new contribution to ISO 26000 between CSR practices and CSRP, especially for Malaysian automotive suppliers, by using the SEM technique. This research provides important information for decision-makers involved in CSR practices, ISO 26000 and CSRP implementation and also provides useful reference for future researchers in this research area.