An analysis of corporate social responsibility in the Maltese construction industry

Abstract

Corporate Social Responsibility (CSR) is quite a novel concept in Malta; however, this has been extensively developed in foreign jurisdictions. With some companies noticeably taking the initiative to implement the fundamentals of this concept within their own structures, one wonders if there is any binding legislation in this regard. At present, the notion is only mentioned in the guidelines provided by the Malta Financial Services Authority, which are intended to complement the Companies Act in relation to corporate governance. CSR is only applicable to specific companies which fulfil certain criteria, such as being listed companies with equity securities, which are admissible to listing on the regulated market. This dissertation intends to explore the concept of CSR in greater detail, but specifically in relation to the construction industry. What makes this industry so relevant to this notion is its great interaction with the environment and society; both being pillars which CSR attempts to address. This dissertation will therefore also highlight the connection between this industry and CSR, and present how CSR may be an opportunity for the construction industry. A comparative analysis of the legislation which the United Kingdom, India and the European Union have enacted in relation to CSR shall also be carried out. Finally, this dissertation aims to consider whether legislative reform is required to impose stricter requirements on these companies which are a significant contributor to Malta’s economy, employing a substantial number of persons and have manifested irreversible effects on the environment. This dissertation proposes that CSR shall no longer be directed towards specific companies. This is especially considering the few companies which fall under the scope of the guidelines provided by the MFSA, and the even smaller percentage of those being construction companies, resulting in only few being required to carry out and report on CSR activities.