Business ethics are moral principles that guide the way a business behaves (The Times 100, 2013).

The same principles that determine an individuals actions also apply to business. Acting in an ethical way involves identifying and differentiating between the right and wrong and then making the right choice. However, it is not easy for companies to maintain good ethical practice when the companies main aim is to make profit. Companies have to make profit to answer to shareholders and make sure employees are treated fairly without discrimination. Other than that, companies have wider responsibilities towards the society and the environment. Business decisions that could harm the environment and communities in which it operates should not even be considered. This is known as corporate responsibility or corporate social responsibility. There is no universal definition to the term corporate social responsibility (CSR). The World Business Council for Sustainable Development (Corporate Social Responsibility, n.d.) defines CSR as the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the community and society at large. Companies engage in CSR as an act of altruism. This not only allow companies to build positive relationships with the local government, there are also contracting benefits when it comes to recruiting, motivating and retaining employees as engaging in CSR improves a business image and reputation. There are plenty of multinational corporations (MNC) operating in Malaysia and their involvement in CSR has benefited the corporation as well as the local community. One of the MNC in Malaysia that has been actively involved in CSR is Carlsberg Brewery Malaysia Berhad (Carlsberg Malaysia). They began brewing Carlsberg Green Label beer locally in 1972. Since then, the brand has become part of everydays life and is the No. 1 beer brand with more than a 50% share of the Malaysian Beer Market. Carlsberg Malaysia is listed on the Main Board of Bursa Malaysia Securities Berhad (Malaysia Stock Exchange) under the consumer products sector. It is an established brewery that manufactures and distributes beers, stout and other beverages mainly in the domestic Malaysian market and also has investments in Sri Lanka, Singapore and in a Malaysian alcoholic beverage company. Being at the forefront of innovation and quality, Carlsberg Malaysia has always led the market with dynamic product launches and massive consumer campaigns. The company has also been championing many Corporate Social Responsibility initiatives focusing on four aspects of Environment, Community, Workplace and Marketplace. These four broad areas

are supported by Carlsbergs six CSR policies: Labour and Human Rights, Marketing Communications, Health and Safety, Business Ethics, Community Engagement and Environment. These policies are integrated into all areas of the business and communicated to each employee at every level of the organization. Triple Bottom Line Concepts Environmental Responsibility (Planet) Economic Responsibility (Profit) Social Responsibility (People)

CSR Framework of Carlsberg Environment Health & Safety Business Ethics Marketing Communications Community Engagement Labor & Human Rights

Environment

Marketplace Community Workplace

CSR is a model of extended corporate governance whereby corporate responsibilities range from its fiduciary duties towards the owners to analogous fiduciary duties towards all the firms stakeholders. Carlsberg Malaysia recognizes CSR as a much more of a part of their corporate governance as there is recognition that a company cannot in the long term operate in isolation from the wider society in which it operates. Thus, Carlsberg CSR governance structure includes a Supervisory Board that is responsible overall for CSR and an Executive Committee to provide strategic guidance and approval of policies and targets. Carlsberg aims to have all the branches in the world executing similar CSR policies but at the same time, they have also allowed Carlsberg Malaysia to have their own CSR committee which is responsible for the local implementation of the CSR strategy where else local CSR policy owners drive policy implementation and performance improvements. In 2008, Carlsberg Malaysia achieved certification to the ISO 14001 Environmental Management System, reflecting the commitment shown by the Management in pursuing the set environmental goals in a systematic and structured manner. Carlsberg Malaysia constantly monitors their corporate risk on non-compliance of statutory and regulatory requirements related to the environment such as Clean Air Regulation 1978, Atomic Energy License Act (AELA) 1984, Sewage Regulation 2009 and etc. Carlsberg Malaysia also adhered to the 3R principles Reduce, Reuse and Recycle. Carlsberg Malaysia has also implemented a monthly internal leakage audit where all leakages detected were repaired immediately whenever

possible or isolated until they could be rectified by the relevant section. This has increased the efficiency in water management. Other than preserving the environment through implementations of programs and plans internally, Carlsberg Malaysia also engaged in Environmental Awareness Programmes externally. On 31st March 2012, Carlsberg Malaysia supported the Earth Hour movement along with 20 Carlsberg companies worldwide for the fifth time. All non-essential electricity in the supply chain such as sales depot, signages were switched off for one hour. They have also contributed an amount worth RM45, 000 to National Zoo Malaysia to commemorate their 25th year partnership. Carlsberg Malaysia emphasises on marketplace initiatives and believes effective supply chain management and communication is instrumental to their success. Carlsberg Malaysia constantly engaged with their stakeholders and that allows them to learn about the perceptions, issues and expectations of the stakeholders in order to understand their needs and achieve the highest satisfaction and most effective distribution of their products to the end consumer. The Carlsberg Group Business Ethics Policy ensures that all business is conducted ethically and complies with applicable regulations and laws. Key personnel as well as new employees are required to attend business ethics training which covers general awareness and consequences of the companys policies and relationships with customers, suppliers and stakeholders. Carlsberg Malaysia is also very strict in their vendor and suppliers selection process to ensure product sustainability. Vendors and suppliers are required to complete an evaluation form and have to comply with relevant sustainability certifications such as ISO 9001, ISO 14001, HACCP, ISO 22000 and ISO 17025. Employees, vendors and suppliers are representative of the company when dealing with end consumers, therefore it is important to make sure that they share the same company value and they do not tarnish the companys image. Carlsberg Malaysia recognises the opportunity to engage with the communities in which they operate. They have committed themselves to making a positive contribution to these communities. One of the main contributions to the community was the Carlsberg Hua Zhong Education Fund (CEF). The CEF, introduced in 1998 as a RM5 million revolving fund is operated by the Federation of Chinese Association Malaysia (Hua Zong) and provides interest-free study loans to deserving underprivileged students wishing to pursue tertiary education. To date, 535 scholars have been granted study loans to support their educational

aspirations. A charity dinner themed Heart2Heart was hosted by Carlsberg Malaysia and it raised RM310, 000 for 27 charitable homes, associations and schools. Carlsberg Malaysia rolled out the Drink Responsibly Campaign to promote moderation in consumption and aims to address underage and binge drinking, and deters drinking and driving. Drink Responsibly kiosks have been erected in events such as Oktoberbest 2012, EURO Viewing Party, Wheres the Party? and Harvest Festival Event in East Malaysia. The event hosts continuously remind party goes to drink responsibly and in moderation. Carlsberg believes their employees are of great value and key to their success. They have strived to establish a workplace where their employees can develop their potential in an open and inspirational working environment. Carlsberg Malaysia is also committed to engaging with employees to better understand their views. An annual survey called MyVoice is carried out to gauge employees engagement levels in the companys operation. Carlsberg Malaysia also offers a competitive benefits package, designed to motivate their workforce and ensure employees reach their full potential. The company offer generous allowance for employees and leave benefits. The health and well being of the employees is of paramount importance where medical treatment at the companys appointed panel clinics doctors are borne by the company. An independent party, EthicsPoint was hired by Carlsberg Malaysia to maintain an incident reporting line, website and dedicated email address for employees or third party who wishes to report any known or suspected unethical behaviour. This not only protects the whistleblowers by allowing anonymous reports, the company also benefits from this as any unethical behaviour by representatives of the company could damage its reputation. Every company has its own definition of CSR. They engaged in different kinds of CSR according to their capabilities and also the benefits they gained from the CSR activities and events. Carlsberg Malaysia has covered a wide area when it comes to CSR. They are constantly improving their CSR agenda and initiatives. Strict compliance to the statutory and regulatory requirements related to the environment has allowed them to achieve certification to the ISO 14001. Constant communications with stakeholders has allowed the company to create shared value with them and that has assisted the company in refining their CSR strategy. Carlsberg Malaysia also received the Best CSR Initiatives Award among public listed companies at the Edge Billion Ringgit Club (BRC) Corporate Awards. The benefits gained from their CSR are obvious, there are still some improvements to be done. Most of the accreditation processes and benchmarking are carried out internally by the Carlsberg

Malaysia CSR committee. Carlsberg Malaysia should enlist third parties or NGO-led processes to help determine the effectiveness of their CSR at the workplace. Other than that, Carlsberg Malaysia should also have a supplier CSR assessment whereby, vendors and suppliers are assessed on their CSR efforts or whether their CSR mission is aligned with Carlsberg Malaysia. This will encourage the adoption of good CSR practices throughout the value chain. Responsible behaviour is not something new in business life. The very existence of business at law is to generate acceptable returns for its shareholders and investors, but it cannot be denied that, a company will not be able to grow if there is no demand or support from the community or society. CSR pave ways for a company to rise to a position it has never been before. Continuous efforts to integrate CSR throughout the value chain has allowed Carlsberg Malaysia to make good progress and aimed to continue to deliver high quality products efficiently. With the six key CSR policies to guide them, Carlsberg Malaysia strives to continue to conduct ethical and responsible business and insist on high standards in all areas, from R&D and procurement, to marketing and helping their local communities.

References
Bidin, A. (2008). Corporate Social Responsibility: Trends and Development in Malaysia. Jurnal Undang-Undang Dan Masyarakat , pp. 175-189. Carlsberg Malaysia. (2012). Driving Sustainability: CSR Report 2012. Shah Alam: Carlsberg Brewery Malaysia Berhad. Chan, S., Ang, G. S., Chan, P. L., Okoth, M., & Ng, B. F. Corporate Social Responsibiltiy Reporting In Malaysia. Petaling Jaya. The Times 100. (2013). Business Ethics and Corporate Social Repsonsibility. Retrieved September 26, 2013, from The Time 100: Business Case Studies: businesscasestudies.co.uk/angloamerican/business-ethics-and-corporate-social-responsibility/what-are-businessethics.html#axzz2fz4isCfk World Business Council For Sustainable Development. (n.d.). Corporate Social Responsibility. Cambridge: MIT Press.