ISO 26000 Constructs In Malaysian Automotive Suppliers: Exploratory And Confirmatory Factor Analysis

Authors

  • Nursyazwani Mohd Fuzi Departments of Accounting and Finance, Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, 35900 Tanjung Malim, Perak, Malaysia
  • Nurul Fadly Habidin Department of Management and Leadership, Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, 35900 Tanjung Malim, Perak, Malaysia
  • Farah Izzaida Mohd Zamri Departments of Accounting and Finance, Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, 35900 Tanjung Malim, Perak, Malaysia
  • Siti Norhafizan Hibadullah Departments of Accounting and Finance, Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, 35900 Tanjung Malim, Perak, Malaysia
  • Auni Fatin Nadia Chiek Desa Departments of Accounting and Finance, Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, 35900 Tanjung Malim, Perak, Malaysia

DOI:

https://doi.org/10.11113/sh.v8n3.675

Keywords:

ISO 26000, recognizing social responsibility, stakeholder identification and engagement, exploratory factor analysis, confirmatory factor analysis, automotive suppliers.

Abstract

The purpose of this study is to examine ISO 26000 constructs in Malaysian automotive suppliers by using exploratory factor analysis and confirmatory factor analysis. ISO 26000 provides a guideline for businesses and organizations to operate in a socially responsible way. The demand for ISO 26000 is required for the automotive suppliers, as many car manufacturers require their suppliers to obtain it, particularly for Malaysian automotive suppliers. This research reviews the ISO 26000 literature and proposed two constructs with the recognizing social responsibility and stakeholder identification and engagement. 288 sets of questionnaire were successfully collected which showed 72% response rate from 400 set of questionnaires were distributed to top management of Proton and Perodua automotive suppliers. This paper presents finding of exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) empirically verified and validated. The results indicate that two constructs are acceptable for further analysis.

 

References

Abdullah, R., Lall, M. K., & Tatsuo, K. (2008). Supplier Development Framework In The Malaysian Automotive Industry: Proton’s Experience. International Journal of Economics and Management, 2(1), 29-58.

Bal, M., Bryde, D., Fearon, D., & Ochieng, E. (2013). Stakeholder Engagement: Achieving Sustainability In The Construction Sector. Sustainability, 5(2), 695-710.

Balzarova, M. A., & Castka, P. (2012). Stakeholders' Influence And Contribution To Social Standards Development: The Case Of Multiple Stakeholder Approach to ISO 26000 Development. Journal of Business Ethics, 111(2), 265-279

Barrantes, P. A. (2012) Examining The Relationship Between Employees' Perceptions Of And Attitudes Toward Corporate Social Responsibility And Organizational Identification (Doctoral Dissertation). The Florida State University.

Bottenfield, K. (2013) Examining The Construct Validity And Reliability Of Student Engagement Among Adult Student (Doctoral Dissertation). Iowa State University.

Brown, J. A., & Forster, W. R. (2013). CSR And Stakeholder Theory: A Tale Of Adam Smith. Journal of Business Ethics, 112(2), 301-312.

Bustami, R., Na, D., Nasruddin, E., & A’mmaari, S. R. (2013). Exploring ISO 26000 And Global Reporting Initiatives (GRI): A Neo- Institutional Analysis Of Two CSR Institutions. International Economics Letters, 2(2), 48-69.

Butler, J. B., Henderson, S. C., & Raiborn, C. (2011). Sustainability And The Balanced Scorecard: Integrating Green Measures Into Business Reporting. Management Accounting Quarterly, 12(2), 1-10.

Canada, I. (2012). The Importance Of Stakeholder Engagement. Retrieved from http://www.ic.gc.ca/eic/site/csr-rse.nsf/eng/rs00139.html

Castka, P., & Balzarova, M. A. (2007). A Critical Look On Quality Through CSR Lens: Key Challenges Stemming From The Development Of ISO 26000. International Journal of Quality & Reliability Management, 24(7), 738-752

Dincer, B. (2011). Do The Shareholders Really Care About Corporate Social Responsibility? International Journal of Business and Social Science, 2(10), 71-76.

Donaldson, T., & Preston, L. E. (1995). The Stakeholder Theory Of The Corporation: Concepts, Evidence, And Implications. Academy of Management Review, 20(1), 65–91.

Drost, E. A. (2011). Validity And Reliability In Social Science Research. Education Research and Perspectives, 38(1), 105-123.

Ecologia. (2011). Handbook For Implementers Of ISO 26000. Retrieved from http://www.ecologia.org/isosr/ISO26000Handbook.html

Frost, R. (2009). Social Responsibility: ISO 26000. Executive Briefing on ISO 26000. ISO Management Systems Special Report, 9(5), 1-50.

Frost, R. (2009). Social Responsibility: ISO 26000. Executive Briefing on ISO 26000. ISO Management Systems Special Report, 9(5), 1-50.

Fuzi, N. M., Habidin, N. F., Desa, A. F. N. C., Zamri, F. I. M., & Hibadullah, S. N. (2013). Corporate Social Responsibility Practices, ISO 26000 Efforts And CSR Performance In Malaysian Automotive Industry. International Journal of Managerial and Financial Accounting, 5(3), 277–293.

Fuzi, N. M., Habidin, N. F., Hibadullah, S. N., Zamri, F. I. M., & Desa, A. F. N. C. (2015). Critical Success Factors Of Corporate Social Responsibility Practices For The Malaysian Automotive Industry. International Journal of Critical Accounting, 7(2), 142–156.

Girard, C., & Sobczak, A. (2012), Towards A Model Of Corporate And Social Stakeholder Engagement: Analyzing The Relations Between French Mutual Bank And Its Members. Journal of Business Ethics, 107(2), 215–225.

Greenwood, M. R. (2004). Stakeholder Engagement As Social (IR) Responsibility. Working Paper 1/04, Australian and New Zealand Academy of Management 17th Annual Conference 2-5 December 2003, Fremantle, Western Australia.

Habidin, N. F. (2012). Structural Analysis And Tool For Lean Six Sigma, Strategic Control Systems And Organizational Performance. Thesis of Engineering Doctorate (Engineering Business Management), UTM Razak School of Engineering and Advanced Technology, University Teknologi Malaysia.

Habidin, N. F., & Yusof, S. M. (2012). Relationship Between Lean Six Sigma, Environmental Management Systems, And Organizational Performance In The Malaysian Automotive Industry. International Journal of Automotive Technology, 13(7), 1119-1125.

Habidin, N. F., & Yusof, S. M. (2013). Critical Success Factors Of Lean Six Sigma For Malaysian Automotive Industry. International Journal of Lean Six Sigma, 4(1), 60-82.

Habidin, N. F., Fuzi, N. M., Desa, A. F. N. C., Hibadullah, S. N., & Zamri, F. I. M. (2014). ISO 26000 Efforts And Corporate Social Responsibility Performance In Malaysian Automotive Industry. International Journal of Business Excellence, 7(4), 515-529.

Habidin, N. F., Zubir, A. F. M., Conding, J., Jaya, N. A. S. L., & Hashim, S. (2013). Sustainable Manufacturing Practices, Sustaining Lean Improvements And Sustainable Performance In Malaysian Automotive Industry. International Journal of World Review of Entrepreneurship, Management and Sustainable Development, 9(4), 444-459.

Hahn, R. (2012). ISO 26000 And The Standardization Of Strategic Management Processes For Sustainability And Corporate Social Responsibility. Business Strategy and the Environmemt, 22(7), 442-455.

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed A Silver Bullet. Journal of Marketing Theory and Practice, 19(2), 139-151.

Harrison, J., Rouse, P., & Villiers, C. J. D. (2012). Accountability And Performance Measurement: A Stakeholder Perspective. The Business and Economics Research Journal, 5(2), 243-258.

Hashim, S., Habidin, N. F., Conding, J., Zubir, A. F. M., and Jaya, N. A. S. L. (2012). Total productive maintenance kaizen event, innovation performance in Malaysian automotive industry. International Journal of Physical and Social Sciences, 3(1), 45–64.

Hibadullah, S. N., Habidin, N. F., Zamri, F. I. M, Fuzi, N. M., & Desa, A. F. N. C. (2013). The Integrated Between Lean Manufacturing Practices And ISO 14001 Efforts In Malaysian Automotive Industry. Journal of Applied Science and Research, 1(1), 17-27.

Hibadullah, S. N., Habidin, N. F., Zamri, F. I. M, Fuzi, N. M., & Desa, A. F. N. C. (2014). Critical Success Factors Of Lean Manufacturing Practices For The Malaysian Automotive Manufacturers. International Journal of Quality and Innovation, 2(3/4), 256-271.

Hoivik, H. V. W. (2011). Using ISO 26000 to Implement A Learning And Knowledge Creating Process In Two SMES. Working Paper No. 26/11, Institute for Research in Economics and Business Administration.

Huijstee, M. V., and Glasbergen, P. (2008). The Practice Of Stakeholder Dialogue Between Multinationals And NGOS. Retrieved from http://www.unpop.nl/inhoud/artikelen/

ISO 26000: 2010 (E). Guidance on social responsibility. International Standard ISO 26000.

Jain, P. M., & Shandliya, V. K. (2013). A Survey Paper On Comparative Study Between Principal Component Analysis (PCA) And Exploratory Factor Analysis (EFA). International Journal of Computer Science and Applications, 6(2), 373-375.

Jaya, N.A.S.L., Habidin, N.F., Zubir, A.F.M., Conding, J., & Hashim, S. (2012). Exploring Information Manufacturing Sharing And Supply Chain Performance: Based on Malaysian Automotive Industry. IOSR Journal of Engineering, 2(7), 41-48.

Kanokporn, T., Natcha, T., & Damrong, T. (2013). Green Industry System Development By Applying International Standards. Journal of Advanced Management Science, 1(1), 96-101.

Kelly, M., & Bather, A. (2009). Corporate Social Responsibility And The Teaching Of Management Accounting. Philosophy of Management, 8(1), 15-26.

Kosi, K., & Harazin, P. (2011). Performance Evaluation Of Corporate Social Responsibility According To The Logic Of ISO 26000. Regional and Business Studies, 3(1), 739-749.

Mainardes, E. W., Alves, H., & Raposo, M. (2011). Stakeholder Theory: Issues To Resolve. Management Decision, 49(2), 226-252.

Mckelvey, H. (2007). ISO 26000: How the New Standard for Social Responsibility from the International Standards Organization Will Impact the Role of the Management Consultant and the Management Consulting Industry (Master’s Thesis). Faculty of Commerce, Saint Mary’s University.

Merz, S. K. (2011). ISO 26000 Guidance On Social Responsibility. Retrieved from http://www.globalskm.com/Insights/Achieve-Magazine/Issue2-2011/article7.aspx

Min, L. A. (2010). The Perception of Ethics and Social Responsibility of Malaysian International Chamber of Commerce and Industry Corporate Members in Relation to ISO 26000–Social Responsibility Adoption (Doctoral Dissertation). University Utara Malaysia, Kedah.

Ministry of International Trade and Industry. (2014). National Automotive Policy (NAP). Retrieved from http://www.miti.gov.my/

Moonsamy, V., & Singh, S. (2012). A 21st Century Framework For Quality Management. African Journal of Business Management, 6(45), 11231-11242.

Nisipeanu, S., Damian, G. S., Carţana, C., Bantasa, D., & Serafim, A. (2011). CSR Contribution To Sustainable Development In The Energetic Sector. Journal of Sustainable Energy, 2(2), 97-102.

Oladele, J. A. (2012). Survey Of Corporate Social Responsibility Practices In Nigerian Manufacturing Sector. International Journal of Research Studies in Management, 1(1), 1-10.

Peloza, J., & Papania, L. (2008). The Missing Link Between Corporate Social Responsibility And Financial Performance: Stakeholder Salience And Identification. Corporate Reputation Review, 11(2), 169-181.

Perera, O. (2009). ISO 26000 – Social Responsibility SMES, ISO 26000 And Social Responsibility. Special Report, ISO Management Systems. Retrieved from http://www.iisd.org/publications/pub.aspx?id=1199

Pojasek, R. B. (2011). Pojasek, R. B. (2011). ISO 26000 Guidance On Social Responsibility. Environmental Quality Management, 20(3), 85-93.

Roberts, J. M. (2010). How Corporate Social Responsibility (ISO 26000) Mandates Undermine Free Markets. Retrieved from http://www.heritage.org/research/reports/

Schwartz, B., & Tilling, K. (2009). ISO-lating’ Corporate Social Responsibility In The Organizational Context: A Dissenting Interpretation Of ISO 26000. Corporate Social Responsibility and Environmental Management, 16(5), 289-299.

Sedani, C. M., & Lakhe, R. R. (2011). ISO Certification And Business Performance: Empirical Findings Of Indian SMEs. International Journal of Business Excellence, 4(6), 715-730.

Singh, R. (2009). Does My Structural Model Represent The Real Phenomenon?: A Review Of The Appropriate Use Of Structural Equation Modelling (SEM) Model Fit Indices. The Marketing Review, 9(3), 199-212.

Sitnikov, C. S., & Bocean, C. G. (2012). Corporate Social Responsibility Through The Lens Of ISO Standards. Business Excellence and Management, 2(4), 56-66.

Sofia, P. (2010). Identification of the Main Environmental Challenges in A Sustainability Perspective for the Automobile Industry (Master’s Thesis). Chalmers University Of Technology, Sweden.

Sully, R. (2012). ISO 26000: The Business Guide To The New Standard On Social Responsibility. Impact Assessment and Project Appraisal, 30(3), 214-215.

Suntory, G. (2012). Stakeholder Engagement. Retrieved from http://www.suntory.com/csr/

Sweeney, L. (2009). A Study of Current Practice of Corporate Social Responsibility (CSR) and an Examination of the Relationship between CSR and Financial Performance using Structural Equation Modeling (SEM) (Doctoral Dissertation), Dublin Institute of Technology.

Tavakol, M., & Dennick, R. (2011). Making Sense Of Cronbach’s Alpha. International Journal of Medical Education, 2(2), 53-55.

Vazquez, L. G., & White, R. G. (2012). Can Mining Be Sustainable? ISO 26000 SR For Responsible Exploration And Sustainable Mining. Ideas CONCYTEG, 7(81), 323-341.

Virtanen, A. A. (2013). Managerial Perceptions on Corporate Social Responsibility: A Transatlantic Comparison between Forest Products Companies in Europe and North America (Master’s Thesis), Department of Forest Sciences, University of Helsinki.

Ward, H. (2012). ISO 26000 And Global Governance For Sustainable Development. Retrieved from http://pubs.iied.org

Webb, K. (2012). ISO 26000: Bridging The Public/Private Divide In Transnational Business Governance Interactions. Research Paper, 8(5), 2-29.

Weber, T. (2012). How ISO standards support global car industry. Available: http://www.iso.org/iso/cars_compilation

Weinestedt, H. (2009). Stakeholder Analysis as a Tool for Working with Social Responsibility. Developing a Stakeholder Analysis Method for ISO 26000 (Master’s Thesis). Stockholm Resilience Centre, Stockholm University.

Williams, B., Brown, T., & Onsman, A. (2012). Exploratory Factor Analysis: A Five-step Guide For Novices. Australasian Journal of Paramedicine, 8(3), 1-13.

Zgodavova, K., & Bober, P. (2012). An Innovative Approach To The Integrated Management System Development: Simpro-Ims Web Based Environment. Quality Innovation Prosperity, XVI(2), 59-70.

Zhang, W. (2012). Gap Analysis of ISO 26000 in Two Atlas Copco Companies in China (Master’s Thesis), Royal Institute of Technology.

Zubir, A. F. M., Habidin, N. F., Conding, J., Jaya, N. A. S. L., and Hashim, S. (2012). The Development Of Sustainable Manufacturing Practices And Sustainable Performance In Malaysian Automotive Industry. Journal of Economics and Sustainable Development, 3(7), 130–138.

Downloads

Published

2016-07-19

How to Cite

Mohd Fuzi, N., Habidin, N. F., Mohd Zamri, F. I., Hibadullah, S. N., & Chiek Desa, A. F. N. (2016). ISO 26000 Constructs In Malaysian Automotive Suppliers: Exploratory And Confirmatory Factor Analysis. Sains Humanika, 8(3). https://doi.org/10.11113/sh.v8n3.675

Issue

Section

Articles