Sustainability risk management: Are Malaysian companies ready?
The sustainability issues resulting from Malaysian palm oil production have garnered much interest in the palm oil industry. Consequently, Malaysian palm oil industry is indirectly exposed to sustainability risks, including boycott and reputational and regulatory risks. Hence, the industry encounter...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2024-02-01
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| Series: | Heliyon |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844024007126 |
| _version_ | 1797304563227688960 |
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| author | Shazrul Ekhmar Abdul Razak Mazlina Mustapha Sabarina Mohammed Shah Nor Aziah Abu Kasim |
| author_facet | Shazrul Ekhmar Abdul Razak Mazlina Mustapha Sabarina Mohammed Shah Nor Aziah Abu Kasim |
| author_sort | Shazrul Ekhmar Abdul Razak |
| collection | DOAJ |
| description | The sustainability issues resulting from Malaysian palm oil production have garnered much interest in the palm oil industry. Consequently, Malaysian palm oil industry is indirectly exposed to sustainability risks, including boycott and reputational and regulatory risks. Hence, the industry encounters intense pressure from numerous stakeholders to address sustainability issues. Prior studies propounded that sustainability risk management (SRM) could minimise the adverse impact of sustainability risks by addressing sustainability issues. Nevertheless, the implementation of sustainability risk management in Malaysia remains low as numerous companies are not ready for it. Drawing on contingency theory, the objective of this study is to investigate the influence of contextual factors that can influence companies' readiness in implementing sustainability risk management. Data was collected through the distribution of questionnaires between July and December 2020. A total of 407 questionnaires were distributed, with a response rate of 29 %. Resultantly, sustainability strategy, business size, top management support, and regulatory pressure positively and significantly influenced sustainability risk management implementation. The findings also expanded the current theoretical knowledge with valuable insights for policymakers regarding the factors influencing to companies’ readiness in implementing SRM. |
| first_indexed | 2024-03-08T00:12:15Z |
| format | Article |
| id | doaj.art-86ab3322eaf647bb9c3879a640dc5415 |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-03-08T00:12:15Z |
| publishDate | 2024-02-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-86ab3322eaf647bb9c3879a640dc54152024-02-17T06:38:26ZengElsevierHeliyon2405-84402024-02-01103e24681Sustainability risk management: Are Malaysian companies ready?Shazrul Ekhmar Abdul Razak0Mazlina Mustapha1Sabarina Mohammed Shah2Nor Aziah Abu Kasim3Department of Agribusiness and Bioresource Economics, Faculty of Agriculture, Universiti Putra Malaysia, 43400 UPM Serdang, Malaysia; Corresponding author.School of Business and Economics, Universiti Putra Malaysia, 43400 UPM Serdang, MalaysiaSchool of Business and Economics, Universiti Putra Malaysia, 43400 UPM Serdang, MalaysiaSchool of Business and Economics, Universiti Putra Malaysia, 43400 UPM Serdang, MalaysiaThe sustainability issues resulting from Malaysian palm oil production have garnered much interest in the palm oil industry. Consequently, Malaysian palm oil industry is indirectly exposed to sustainability risks, including boycott and reputational and regulatory risks. Hence, the industry encounters intense pressure from numerous stakeholders to address sustainability issues. Prior studies propounded that sustainability risk management (SRM) could minimise the adverse impact of sustainability risks by addressing sustainability issues. Nevertheless, the implementation of sustainability risk management in Malaysia remains low as numerous companies are not ready for it. Drawing on contingency theory, the objective of this study is to investigate the influence of contextual factors that can influence companies' readiness in implementing sustainability risk management. Data was collected through the distribution of questionnaires between July and December 2020. A total of 407 questionnaires were distributed, with a response rate of 29 %. Resultantly, sustainability strategy, business size, top management support, and regulatory pressure positively and significantly influenced sustainability risk management implementation. The findings also expanded the current theoretical knowledge with valuable insights for policymakers regarding the factors influencing to companies’ readiness in implementing SRM.http://www.sciencedirect.com/science/article/pii/S2405844024007126Sustainability risk managementSustainability riskPalm oil industryContingency theory |
| spellingShingle | Shazrul Ekhmar Abdul Razak Mazlina Mustapha Sabarina Mohammed Shah Nor Aziah Abu Kasim Sustainability risk management: Are Malaysian companies ready? Heliyon Sustainability risk management Sustainability risk Palm oil industry Contingency theory |
| title | Sustainability risk management: Are Malaysian companies ready? |
| title_full | Sustainability risk management: Are Malaysian companies ready? |
| title_fullStr | Sustainability risk management: Are Malaysian companies ready? |
| title_full_unstemmed | Sustainability risk management: Are Malaysian companies ready? |
| title_short | Sustainability risk management: Are Malaysian companies ready? |
| title_sort | sustainability risk management are malaysian companies ready |
| topic | Sustainability risk management Sustainability risk Palm oil industry Contingency theory |
| url | http://www.sciencedirect.com/science/article/pii/S2405844024007126 |
| work_keys_str_mv | AT shazrulekhmarabdulrazak sustainabilityriskmanagementaremalaysiancompaniesready AT mazlinamustapha sustainabilityriskmanagementaremalaysiancompaniesready AT sabarinamohammedshah sustainabilityriskmanagementaremalaysiancompaniesready AT noraziahabukasim sustainabilityriskmanagementaremalaysiancompaniesready |