Abstract:

This study seeks to investigate the potential influence of corporate governance  and internal resources on Corporate Social Responsibility (CSR) reporting practice among 100 leading companies listed on Bursa Malaysia. The agency and resource-based theories are used to underpin the theoretical relationship between corporate governance and internal resources and the CSR reporting. Data collected from company annual and sustainability reports were gathered using content analysis approach. The regression analyses results reveal that board size has significant potential to induce ‘agents’ to engage in CSR initiatives as well as to disclose CSR information hence reduce agency costs and maximize the welfare of ‘principals’.  In the context of internal resources, human resources in the form of commitment top leadership to CSR initiatives have been found to enhance CSR information disclosed. Additionally, stakeholder engagement through social dialogues will also facilitate in reducing information asymmetry hence lead to maximization of shareholders’ interest.