Corporate Social Responsibility (CSR) and its Impact on Environmental Sustainability and Social Well-Being: Evidence from a Malaysian Multinational Corporation

Abstract

This study examines the role of Corporate Social Responsibility (CSR) initiatives in addressing climate change, focusing on Petronas as a case study. The findings highlight how strategic CSR implementation, effective stakeholder communication, and technological innovation contribute to environmental sustainability and climate action. Petronas demonstrates its commitment to reducing environmental impacts through cleaner energy solutions and participation in global climate initiatives. The study emphasizes that successful CSR implementation requires strong managerial commitment, transparent communication, and effective integration into organizational strategies to enhance stakeholder trust, corporate reputation, and long-term performance. However, CSR adoption remains challenging due to internal conflicts between sustainability priorities and profitability objectives, as well as external pressures from stakeholders and regulatory expectations. Despite these challenges, CSR provides significant strategic benefits by strengthening competitiveness, stakeholder relationships, and organizational resilience. The study concludes that businesses should continuously invest in environmental management, community engagement, and knowledge sharing to achieve meaningful sustainability outcomes. Positioning CSR as a strategic business approach enables organizations to address climate challenges while contributing to sustainable development and long-term value creation.