| Summary: | This study aims to examine the role of product market competition on Corporate Social Responsibility (CSR) by
engaging altruism and utilitarianism views. Using dynamic Generalized Method of Moment panel regression for
524 Malaysian non-financial industry listed companies from 2010 to 2016, we find that firms in a more competitive
environments increase their CSR activities. We interpret these results as evidence that CSR is strategically chosen
by firms not for the societal benefits, but more on business as usual; a support for utilitarianism view, i.e profit
maximizations. It explains the rationale that CSR activities are less employed in a more monopolistic or oligarchic
industry. Practically, this study suggests that the CSR activities are forced by market competition. Firms in a more
competitive market need CSR as their non-market strategies.
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