Corporate Social Responsibility In Global Business Discourse: Example Of MAMEE-Double Decker (M) Sdn Bhd

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1.1.Background of the Company

MAMEE-Double Decker (M) Sdn Bhd is a company of food processing in snack, instant noodles, beverages and confectionery in Malaysia. It was founded in 1971 by Datuk Pang Chin Hin and his partner in Malacca. Currently, they are serving over 50 products including MAMEE Monster snack, Mister Potato Chips and MAMEE Chef. They had penetrated to the international market and exported to over 100 countries around the world. Besides, MAMEE-Double Decker also build manufacturing facilities in Myanmar and Indonesia. All facilities have won awards of ISO 9000s, HACCP and Halal certifications. MAMEE Chef has been rated in the Top Ten Instant Noodle category consistently by the Ramen Rater.

1.2.The CSR strategies or practices

Corporate Social Responsibility (CSR) is how a company handles its business processes to create a positive overall impact on society. To help its organization achieve its goals, MAMEE-Double Decker has adopted some corporate social responsibility strategies.

1.2.1.Yayasan Mamee for dialysis patients

On 1 January 2010, they established Yayasan Mamee and promise to provide initial seed funding of RM2 million. This is a charity that takes care of the needs of underprivileged dialysis patients. They set up a dialysis centre in 2009 with an initial donation of RM800,000 to the construction and maintenance of the facility, 10 dialysis machines and provision of trained medical staff. The total donation reaches RM1 million and they have provided free dialysis care and medications to 13 patients suffering from End-Stage Renal Disease (ESRD) and aiming to expand their services to more patients in need by 2011.

1.2.2.Caring for children

MAMEE-Double Decker’s employees and management persisted with tradition by arranging a series of festive visits to orphanage, including Hari Raya, Chinese New Year and Deepavali in 2010. They gave hampers and ‘ang pows’ to children and spend time with them to bring them happiness. There are also proposals in the pipeline to create a Scholarship Fund to meet the educational needs of deserving school students throughout Malaysia.

1.2.3.Go Green

MAMEE-Double Decker are constantly developing and monitoring their practices on pollution of resources and waste to ensure they have met with emission regulations. In 2010, they led the ‘green’ future by recycling exhaust gases from production plants into reusable energy sources and converted back into power for plants. This method enhances energy conservation and helps to be the basis for balanced development and environmental protection.

1.3.The CSR strategies benefits

Corporate social responsibility strategies are important to a company because it brings benefits to the company, such as improving the company’s public image, boosting employee morale and saving the company money.

1.3.1.Improved public image

Companies that show corporate social responsibility are exposed and praised for their participation. Consumers feel good buying goods and services from companies who help the community. Nowadays, people use social media to get information and share information, including the participation of community involvement. People can know MAMEE-Double Decker established Yayasan Mamee for dialysis patients and helping them.

1.3.2.Boost employees’ morale

Corporate social responsibility not only adds value to the company externally, but it adds value internally as well. MAMEE-Double Decker’s employees and management visit the orphanage during the festival season which can boost morale among employees. They also motivating teamwork which stretches beyond the workplace and makes employees proud of the company their serve. This can be a powerful business strategy and letting the company’s employees connect with the community.

1.3.3.Saves money

Improving energy efficiency may save costs for utilities. MAMEE-Double Decker goes green by recycling waste into reusable energy sources. Recycling and reusing waste can reduce the cost of buying new stocks to produce goods. When the company reduce expenses, they are saving money. Although it only cost a little money to build a green business process, it saved a lot of money over time.

1.1.The Challenges of the CSR

Although corporate social responsibility offers some advantages to the business, the company will also face several challenges when they adopting activities in corporate social responsibility.1.1.1.2.1.3.1.4.

1.4.1.Clashing of business objectives and cause resistance from shareholders

The main goal of a business organization is to generate profit and also shareholders invest in socially responsible companies is to make a profit. Corporate Social Responsibility may allow companies to take into consideration people’s interest when making a significant decision that can lead to conflicts of business objectives. Although some companies make considerable profits from corporate social responsibility, other companies who follow the strategies also tend to be at risk for losses. Since corporate social responsibility has a poor track record of determining enlarged income, creditors tend to resist corporate leaders’ efforts to arrange in this direction.

1.4.2.Competitive Disadvantages

Corporate social responsibility will incur more costs to complete its activities, those companies that do not fulfil the corporate social responsibility will be able to supply their goods to customers in the market at a lower cost. This means the companies that ensure corporate social responsibility are at a disadvantage in the market compared to various competitors. In this situation, the company may need to face many market losses in the short and long run.

1.5.Recommendations

1.5.1.Get back shareholders interested

Company should take the appropriate measure to create a positive relationship among shareholders to implement effective corporate social responsibility activities. Effective shareholders involvement helps to reduce risk and build the company’s brand. However, the viewpoints of the shareholders can influence the goals of an organization. There would be a competitive edge of well-structured interaction with shareholders.

1.5.2.Research new business models

Company should research new business models to help the environment and improving the community. In addition to being the core of the company’s business strategy, corporate social responsibility strategies also require long-term planning. The organization’s staffs and management should know their roles and what to do.

1.5.3.Change the mindset of management

A positive company mindset can boost business to new levels of productivity and profit. The social and environmental contributions of the organization will become more valuable which can encourage more responsible business models. At the same time, it can shift from short-term profit to long-term competitiveness.

1.6.Conclusion

In global business discourse, corporate social responsibility is now firmly established. Corporate social responsibility offers MAMEE-Double Decker benefits at the same time they do encounter certain obstacles. They should find some ways to handle the issues such as get back shareholders interested, research new business models and change the mindset of management.

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