Virtuous CSR: an Islamic family business in Malaysia

Abstract

Purpose – The purpose of this paper is to postulate, in addition to “moral” and “strategic” considerations, a third general standard for corporate social responsibility (CSR). That third approach is what moral philosophers call “virtue ethics.” Design/methodology/approach – This paper uses a single organization case study of a Malaysian publisher to put forward the practice of virtuous CSR based on Islamic values and principles in a family business. Findings – By focussing on creating or maintaining virtuous habits in the family and the firm, the family business has avoided the equally unrealistic notions that CSR must be entirely selfless or entirely strategic to be legitimate. Virtues that foster a successful strategy such as vision and competence can be enhanced rather than hindered by virtues such as integrity and generosity. Research limitations/implications – This is a case study of a single family. Nevertheless, this paper has implications for strategy and CSR for non-family business as well because it brings into the discussion virtue ethics which is largely absent from popular ethical discourse in the West, including popular discourse about business ethics and CSR. Practical implications – While moral and strategic interests merit consideration, virtue is often the most important concern of all. Virtuous CSR aims to improve or at least preserve the character and the soul of the family and its enterprise. Originality/value – This paper shows that in family business moral freedom and CSR do not have to be purchased at the expense of an effective business strategy. Paradoxically, an effective business strategy may be partly non-strategic and partly non-business – i.e. partly focussed on virtue. Further research may show that family business can be a leader in CSR, teaching managerial techniques to non-family business.

Sustainability and Business Outcomes in the Context of SMEs: Comparing Family Firms vs. Non-Family Firms

“…These authors suggest that this is due to identity and image as CSR actions affect the reputation of the company. Specifically, Yosuf et al [39] emphasize that CSR helps to preserve certain family values related to attributes such as integrity and generosity.…”

Religion-Based Decision Making in Indian Multinationals: A Multi-faith Study of Ethical Virtues and Mindsets

“…In Islam, concepts of virtue ethics are primarily informed by the Quran, Shariah, Sunnah and the writings of different Muslim philosophers. For example, concepts such as truth, justice, integrity, generosity, patience, gratitude and charity can be found in Islamic virtue ethics (Wade, 2010;Yusof, Nor and Hoopes, 2014;Zaroug, 1999). According to Adeel (2015), who referred to the works of several Muslim philosophers, Islam emphasizes virtues such as moderation (also called temperance), knowledge, wisdom, chastity, courage, justice, fear of God, conscience, humility, benevolence and patience.…”

Performance of Family Business in Malaysia

“…Scholars have tried to unveil many aspects of family entrepreneurship in Malaysia. Thus, they explored a variety of topics including, inter alia; performance (stressed in this study), earnings (Jaafar et al, 2012), business inheritance and succession (Abdullah et al, 2011;Amran, 2012;Ghee et al, 2015), corporate social responsibility, IFRS mandatory disclosure (Abdullah et al, 2015), corporate social responsibility (Yusof et al, 2014), CEOs language choice (Ting, 2017), and internationalization (Cheong et al, 2015). The next subsections will specifically shed light on the operationalization of performance as found in empirical studies in the Malaysian context, the factors assessed in their effect on performance and how performance of this type of businesses is shaped.…”