The relationship between CSR practices, ISO 26000 and performance among Malaysian automotive suppliers

The aim of this study is to examine the relationship between CSR practices, ISO 26000, and performance among Malaysian automotive suppliers. A survey through questionnaire was conducted to determine the level of CSR practices, ISO 26000, and performance measurement. 288 sets of questionnaire were successfully collected which indicated a 72% response rate. Structural equation modeling technique was utilized to perform the required statistical analysis of the data survey. In order to test the reliability and validity of the instruments, exploratory factor analysis, reliability analysis, and confirmatory factor analysis were performed. Findings indicate that the relationship between CSR practices and performance were positively and significantly and CSR practices also was positive and significant related to ISO 26000. ISO 26000 was direct positive and significant relationship to performance. Therefore, ISO 26000 mediate the relationship between CSR practices and performance. The results indicate that ISO 26000 could be considered as a partial mediator. The impact of CSR practices implementation on performance increases with ISO 26000 as mediator among Malaysian automotive suppliers. This study also provides a fundamental and direction for automotive practitioners and researchers to improve performance through the implementation of CSR practices and ISO 26000.