What do the top 20 highest-earning companies listed on Malaysia’s stock exchange (Bursa Malaysia) have in common? Through both monetary contributions and in-kind support, these Top 20 Bursa companies have demonstrated a profound commitment to corporate social and environmental responsibility, extending their impact to employees, communities, and societies at large.
Produced by Wiki Impact, the ‘Bursa Top 20: Who’s The Most Charitable (2023)’ report charts the trends and practices of corporate giving based on sustainability and annual reports as published by the respective companies.
”Through the release of this report for the second consecutive year, our primary objective remains unchanged – and that is to encourage and inspire profit-driven companies to foster a philanthropic culture within their organisation. We believe that sharing insights will pave the way for more companies to recognise the value of giving back,” said Terence Ooi, Co-Founder of Wiki Impact.
Bursa Top 20: Who’s The Most Charitable? sets a baseline and paints a vision for other companies to follow or surpass in their giving. Customers and stakeholders are also increasingly looking for brands that align with their values and serve a bigger cause, aside from profits.
“This evidence-based reporting not only paints a picture of corporate giving in Malaysia but also presents an opportunity to spark conversations in boardrooms on the need and significance for profit-making companies to contribute in cash and in-kind – and be transparent about how they are making a difference,” Ooi continued.
Top Cash Givers (Cash Giving To Net Profit)
Sime Darby Berhad distinguished itself again as the biggest cash giver in terms of the cash-to-profit giving ratio at 1.81 per cent. RM20 million of its RM1.10 billion net profit went to charity and other social and environmental initiatives. This is higher than their 2021 cash giving amounting to 1.40 per cent.
Telekom Malaysia Berhad secured the second position among cash contributors, with a cash-to-profit giving ratio of 0.80 per cent. The company allocated RM8.1 million of its RM1.01 billion net profit to charitable endeavours. In 2021, their cash giving was at 0.5 per cent. CIMB Group Holding Berhad came in next with a cash-to-profit ratio of 0.63 per cent, contributing over RM39.57 million in cash donations of their RM5.44 billion net profit. This is an increase from 0.19 per cent in 2021.
Collectively, the Bursa Top 20 companies donated a total of RM129.25 million in cash during the year 2022, as per publicly available data. Notably, this figure represents a decrease compared to the previous year’s total of RM159.69 million, reflecting evolving corporate giving patterns. The average cash-to-net-profit ratio for all 20 companies currently stands at 0.26 per cent, showing a slight decrease from the 2021 average of 0.29 per cent.
Top In-Kind Givers (In-Kind Giving To Net Profit)
Tenaga Nasional Berhad once again emerged as the top in-kind corporate giver, giving approximately RM153.71 million in-kind, which accounted for 4.44 per cent of the company’s net income. In 2021, their in-king giving was at 3.22 per cent.
IOI Corp Berhad came in second with a contribution of RM60.29 million in in-kind giving, representing 3.48 per cent of its net profit of RM1.73 billion.
Additionally, corporate social responsibility can also be measured through volunteer employee participation where corporate professionals contribute their time and expertise to NGOs and grassroots initiatives.
A total of nine of the 20 companies quantified and recorded their employee volunteer hours, an improvement from just seven companies last year. This year CIMB Group Holdings Berhad clocked the highest number of volunteer hours at 142,614, an increase from last year’s 67,278 volunteer hours.
Areas of Giving & Beneficiaries
The top 20 companies in Malaysia prioritised Education as the primary area for charitable giving, accounting for 33.6 per cent of their contributions. Sponsorship follows at 15.6 per cent, and Welfare at 12.5 per cent, while Sports receives the lowest share at 1.8 per cent.
These are some of the organisations and initiatives mentioned in the top 20 Bursa companies’ reports; Ibupreneur, Institut Jantung Negara (IJN), Komuniti Intervensi Dadah Malaysia (KOMITED Malaysia), Malaysian Aids Foundation (MAF), Mercy Malaysia, and Yayasan Orang Buta Malaysia.
None of the positive changes would be possible without changemakers putting action to the cause.
How Does Malaysia’s Top 20 Compare?
In the United States, Latona’s listed Gilead Sciences as donating the most money in 2019, amounting to USD388 million, a total of 2.9 per cent of their pre-tax profit, while Goldman Sachs Group donated 2.5 per cent of their pre-tax profits, a total of USD280 million. Both companies were well above the two per cent mark in their giving.
In Asia, India is the first country to make corporate social responsibility (CSR) mandatory and a statutory obligation. Following an amendment made in the Companies Act 2013, companies above a certain size and profitability have to spend two per cent of their average net profit over the last three years on CSR initiatives. The CSR spending must be made for social or environmental efforts within the country thereby benefiting the nation and its people.
Methodology
Wiki Impact used information from the selected companies’ public reports dated Y2023, from which quantitative and qualitative data was systematically and meticulously compiled and corroborated. Where information is unclear and needs further explanation, Wiki Impact reached out to individual companies for answers. A handful of companies responded to Wiki Impact’s requests and others did not respond. Also, some companies clearly stated the monetary value of their in-kind giving, while others did not offer explicit information.
“As we reviewed the reports, we noticed a lack of consistency in how information was presented. There were variations in defining what should be disclosed and the extent of disclosure, as well as discrepancies in measuring giving. For instance, the definitions for in-kind donations, contributions from the board of directors, and cash donations were frequently unclear. However, these challenges offer a chance to establish a standardised framework for giving and ensure uniform and transparent reporting,” said Ooi.
A Chance For Greater Equality And Lasting Legacies
Corporate philanthropy has gained unprecedented significance in recent times. The business landscape is evolving, demanding that companies not only adapt but lead by redefining their priorities.
“Today’s customers and stakeholders seek brands that align with their values and commit to causes beyond profit. The top earners bear a profound responsibility to be the foremost contributors. By cultivating a culture of generosity, transformation permeates from the highest echelons of corporate leadership to office cubicles, extending its reach to communities and vulnerable groups,” says Ooi.
Source: Wiki Impact
