Drivers and Consequences of Corporate Social Responsibility in the Oil and Gas Sector: A Legitimacy Perspective

Abstract

This study aims to examine the antecedents influencing corporate social responsibility (CSR) practices in Malaysian oil and gas companies, addressing the limited empirical research in this sector. Data were collected through a survey of 65 managerial-level representatives, including CEOs and senior management, from Malaysian oil and gas companies. IBM SPSS (Version 28) and SmartPLS (Version 3.3) were used to analyse the data and test the proposed relationships using PLS-SEM. The results reveal that stakeholder pressure has a positive and significant relationship with CSR practices in the oil and gas industry. This indicates that legitimacy-driven motivations play a key role in CSR adoption. Furthermore, CSR practices are found to enhance corporate reputation and competitive advantage. The findings highlight the importance for managers to recognize stakeholder expectations as a major driver of CSR adoption and to leverage CSR initiatives to strengthen organizational reputation and competitiveness. This study contributes to the limited body of knowledge on CSR practices within Malaysia’s oil and gas industry by providing empirical evidence of the factors influencing CSR implementation and its organizational outcomes.