Corporate Social Responsibility (CSR) is a topical business issue in the current\naccountability-integrity age. This paper aims to examine and interpret the possible link\nbetween corporate governance, business capabilities and CSR reporting practices.\nSpecifically, agency and resource-based theories were used as the underpinning theoretical\nperspectives in understanding the link between the corporate governance mechanism and\ntheir business capabilities with CSR reporting. Using a content analysis of the annual and\nsustainability reports, the relevant data were gathered from 100 leading companies listed\non Bursa Malaysia. The results of the study revealed that corporate governance mechanism,\nin particular, board size has a significant potential to induce company/ââ?¬Ë?agentsââ?¬â?¢ to engage in\nCSR reporting practices hence reducing agency costs. In the context of business capabilities,\nhuman resources in the form of commitment of top leadership to CSR initiatives was found\nto be a strategic factor in enhancing the CSR information disclosed. The companiesââ?¬â?¢\nengagement with stakeholders through social dialogues also assisted companies in reducing\ninformation asymmetry resulting in the maximization of shareholdersââ?¬â?¢ interest.
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