committee (RMC) in Company C. Fortunately, the occurrence of military conflict at
Lahad Datu had minimal impact on the company value. This highlights one vital
point: companies can no longer assume that the information that they have about
their businesses is always true. Inevitably, Company A suggested that specific
measurements and indicators need to be developed to anticipate emerging risks
earlier.
12.4.2.2 SRM Implementation and Its Impact on Company Survival
Since the Malaysian Code of Corporate Governance 2012 and Bursa Malaysia
Listing Requirements are applicable to all public listed companies, all the case
companies are required to facilitate sustainability practices in their business strategy.
The results indicate that SRM implementation is influenced by both internal and
external contextual factors. In general, the factors within internal environment
exerted greater pressure on the companies than external environment. The internal
factors that motivated the companies to implement SRM programme were good
business practices, regulatory compliance, and corporate reputation. On the other
hand, the external factors that motivated the environmentally sensitive companies to
implement SRM were corporate governance compliance, compliance with laws and
regulations, occurrence of unexpected events, and stakeholder pressure. The case
study findings indicated that all of the companies implemented SRM programme to
meet stakeholder needs for sustainability. According to the interviewees, the stakeholders are increasingly paying attention on the sustainability issues and are exerting
pressure on the companies to demonstrate sustainable business practices. In fact, the
stakeholders also demand the companies to disclose nonfinancial information in a
measurable way. Based on the findings, the environmentally sensitive companies
were recognising that their operations have a significant negative impact on the
environment and society and that, by integrating sustainability into their ERM
practices, they would be able to build stronger relationship with the stakeholders.
Moreover, all of the case companies shared the same opinion that building good
relationship with the stakeholders would ensure positive reputation and gain competitive advantage to financially outperform their competitors. Furthermore, the case
companies believed that the effort to engage with the stakeholders help them to
reduce risks and translate potential threats into opportunities. Otherwise, the
company’s reputation would be at risk if it fails to deliver value to its stakeholders.
In addition, one of the case companies Company C also emphasised that integrating
sustainability into ERM provides opportunity for the company to penetrate its
products into the European Union market. At the same time, the approach
circumvented unexpected costs which may affect the company’s profitability. On
the whole, the results indicated that all case companies believed that implementing
SRM programme has positive impact on their company’s survival over the long-term
although they were at the early stage of implementing it. Concisely, the company
survival is highly dependent on its ability to balance the needs of all stakeholders
while simultaneously assessing potential threats and opportunities.
12 Meeting the Stakeholder Needs and Sustaining Business Through. . .
203
Lahad Datu had minimal impact on the company value. This highlights one vital
point: companies can no longer assume that the information that they have about
their businesses is always true. Inevitably, Company A suggested that specific
measurements and indicators need to be developed to anticipate emerging risks
earlier.
12.4.2.2 SRM Implementation and Its Impact on Company Survival
Since the Malaysian Code of Corporate Governance 2012 and Bursa Malaysia
Listing Requirements are applicable to all public listed companies, all the case
companies are required to facilitate sustainability practices in their business strategy.
The results indicate that SRM implementation is influenced by both internal and
external contextual factors. In general, the factors within internal environment
exerted greater pressure on the companies than external environment. The internal
factors that motivated the companies to implement SRM programme were good
business practices, regulatory compliance, and corporate reputation. On the other
hand, the external factors that motivated the environmentally sensitive companies to
implement SRM were corporate governance compliance, compliance with laws and
regulations, occurrence of unexpected events, and stakeholder pressure. The case
study findings indicated that all of the companies implemented SRM programme to
meet stakeholder needs for sustainability. According to the interviewees, the stakeholders are increasingly paying attention on the sustainability issues and are exerting
pressure on the companies to demonstrate sustainable business practices. In fact, the
stakeholders also demand the companies to disclose nonfinancial information in a
measurable way. Based on the findings, the environmentally sensitive companies
were recognising that their operations have a significant negative impact on the
environment and society and that, by integrating sustainability into their ERM
practices, they would be able to build stronger relationship with the stakeholders.
Moreover, all of the case companies shared the same opinion that building good
relationship with the stakeholders would ensure positive reputation and gain competitive advantage to financially outperform their competitors. Furthermore, the case
companies believed that the effort to engage with the stakeholders help them to
reduce risks and translate potential threats into opportunities. Otherwise, the
company’s reputation would be at risk if it fails to deliver value to its stakeholders.
In addition, one of the case companies Company C also emphasised that integrating
sustainability into ERM provides opportunity for the company to penetrate its
products into the European Union market. At the same time, the approach
circumvented unexpected costs which may affect the company’s profitability. On
the whole, the results indicated that all case companies believed that implementing
SRM programme has positive impact on their company’s survival over the long-term
although they were at the early stage of implementing it. Concisely, the company
survival is highly dependent on its ability to balance the needs of all stakeholders
while simultaneously assessing potential threats and opportunities.
12 Meeting the Stakeholder Needs and Sustaining Business Through. . .
203