TOWARDS DEVELOPING A CORPORATE SOCIAL RESPONSIBILITY MODEL FOR AUTOMOTIVE BUSINESS: AN EXPLORATORY CASE STUDY OF ADOPTION OF AXIATA FOUR PILLARS FOR KN2

Abstract

This paper explores the adoption of Axiata Four Pillars; a Corporate Social Responsibility model on automotive business using a case study approach on KN2, a service and distribution centre of a popular automotive company in Malaysia. As CSR plays a significant role in many industries, its impact would be important for the organizations to maintain their businesses. In automotive industry, CSR is one of the elements in making sure that organizations contribute to excellence in the automotive ecosystem. An organization that practices CSR does not only give positive impact to the industry, but also benefits profitably when it provides community CSR services to its close customers. Case study method was chosen to meet the objective of this study to understand the nature and contributions of CSR practices in the automotive industry particularly in the service and distribution center. Information related to CSR programmes or activities conducted by KN2 were collected through an interview with the Manager and Service Operation Executive as experts in KN2 operations. The information were then documented and analyzed against the four pillars using the reflective stance approach. Findings show that KN2 has some similar practices with Axiata that can fall under the four pillars. However, the full adoption is not feasible to be concluded, as the nature of business is different from Axiata. Some recommendations to modify the model to suit the business environment and operations of an automotive servicing and distribution centres like KN2 were made based on CSR practices related to the business operation of KN2. This new model, the Automotive Sustainable Model that consists of three separate but interrelated elements namely types of economy, customers and society, and automotive business environment are more suitable for such business operations and environment to be further examined in future research.