Afsheen Riaz
Business Administration, Kinnaird College for women university
November, 2013


This study attempts to measure the impact of CSR on the tourism industry of Malaysia.
CSR impact on particularly tourism industry can be measured through the variables which are influenced by the reality of organizational CSR practices. Strategic components of the tourism industry are Transportation industry, Accommodation catering industry, infrastructure and Attraction industries; their practices have impact on each other. In order to extend tourism the component industries have been strengthened in Malaysia which in turn is converted into the prosperity of Tourism industry and vice versa. Contribution of tourism industry of Malaysia towards employment sector, FDI, infrastructure and GDP growth has shown a continuous increasing trend during the last decade. Remarkably, the country has been able to attract the investors from all over the world. This has given an instant boost to the economy of Malaysia. Prosperity of the component industries and tourism industry is mutually supporting. Since Malaysia is a developing country of south East Asia, so are the CSR practices. Though CSR is not as developed and penetrated into the culture of Malaysia as it is in the developed economies of U.S and U.K, yet it is strengthening here.
Malaysian Government has made several steps towards the establishment, implementation and achievement of international standards of CSR. Companies Commission of Malaysia is a milestone towards attainment of globally required CSR by the Malaysian government.
The country is on the right track which is definitely going towards sustainability. The need of the hour is to continue spreading awareness about CSR, monitor its implementation and introducing new promotional plans pertaining to CSR practices. The key areas which need more attention are environmental issues escalating because of growing inflows of tourists.

Key words: CSR (Corporate Social Responsibility), FDI (Foreign direct investment), GDP (Gross domestic product), Tourism.