CSR Di Malasyia

PRACTISING
CORPORATE SOCIAL
RESPONSIBILITY
IN MALAYSIA
A Case Study in an
Emerging Economy
Loi Teck Hui
Practising Corporate Social Responsibility
in Malaysia
Loi Teck Hui
Practising Corporate
Social Responsibility
in Malaysia
A Case Study in an Emerging
Economy
Loi Teck Hui
Loi & Mokhtar (Chartered Accountants)
& Loi & Mokhtar Consulting
Bintulu, Malaysia
ISBN 978-3-319-62475-4 ISBN 978-3-319-62476-1 (eBook)

DOI 10.1007/978-3-319-62476-1
Library of Congress Control Number: 2017948254
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Acknowledgements
I felt deeply honored in 2012 when Bintulu Development Authority

permitted me to research into the practicing corporate social respon-
sibility aspects of the organization since its establishment in 1978 for
advancing knowledge in the areas. Under the leadership of Bintulu
Development Authority’s top management, the recent industrializa-
tion process, and township modernization in Bintulu have moved to a
whole new level. Therefore, this study is timely and compelling in an
era calling for greater public accountability and sustainable develop-
ment. As the premier industrial town in Malaysia, it seems that Bintulu
is well positioned to attain the friendly industrial city status by the year
2020 as articulated in the vision statement of Bintulu Development
Authority.
Outside my immediate environment, I am thankful to all the
dedicated staffs of Bintulu Development Authority who provided
the required information in making this corporate social responsi-
bility intellectual discourse a success. In particular, I am indebted
to Mr. Shukarmin Chasemon, the deputy general manager of
Bintulu Development Authority and the chief internal coordina-
tor of this research project, on his diligent liaison efforts on all the
v
vi
Acknowledgements
aspects concerning this research. I am also grateful to Department of

Environment, Department of Statistics, Malaysian Palm Oil Board,
State Health Department, the related private and public agencies, inter-
national reviewers, and family members for their efforts in providing
some crucial datasets, comments, and encouragements. Photo cred-
its are also given to some online sources. Some portions of this book
are based on and adapted from some related research works previously
presented and published in several premier academic outlets such as
the Strategic Management Society’s special conference, Emerald Group
Publishing, and Routledge. The administrative and editorial work by the
Palgrave Macmillan team on this book project has been excellent.
Contents
1 Introduction 1
2 Theoretical and Managerial Framework 13
3 Contexts 49
4 Integrating Corporate Social Responsibility

into Strategic Intent and Mission 63

into Development Agency Role 73

into City Council Role 89
7 Transformative Corporate Social Responsibility 107
8 Implications on Corporate Social Responsibility

and Corporate Sustainability 159
vii
viii
Contents
9 Concluding Remarks 173
Appendix A: Research Methodology 179
Appendix B: Development and municipal expenditures 183
Name Index 187
Subject Index 191

Abbreviations
ADAB Australian Development Assistance Bureau

BDA Bintulu Development Authority
CSR Corporate Social Responsibility
EC European Commission
FDI Foreign Direct Investment
GDP Gross Domestic Product
GLGs Government-linked companies
ISO International Organization for Standardization
PLCs Public Listed Companies
RECODA Renewable Corridor Development Authority
RM Ringgit Malaysia
SCMD Sarawak Chief Minister’s Department
SCORE Sarawak Corridor of Renewable Energy
TGRI The Global Reporting Initiative
The ASEAN The Southeast Asian Nations
TQM Total Quality Management
WEF World Economic Forum
ix
List of Figures
Fig. 3.1 Bintulu Development Authority’s headquarters in Bintulu 53

Fig. 3.2 Bintulu Development Authority’s municipal services center 53
Fig. 3.3 Organization chart of Bintulu Development Authority 55
Fig. 4.1 Bintulu development plan completed 66
Fig. 6.1 Trends in municipal income and expenditure 2009–2012 90
Fig. 7.1 Trends in financial performance and position 2009–2012 131
Fig. 7.2 Air quality status in Sarawak in 2012 138
Fig. 8.1 Bintulu Development Authority’s practicing corporate
social responsibility model 161
xi
List of Tables
Table 2.1 Corporate social responsibility trend and development

in Malaysia 17
Table 2.2 Corporate social responsibility and ethical practices 23
Table 5.1 Contributions as a development agency—the first boom
period (1979–1988) 76
Table 5.2 Contributions as a development agency—the second
boom period (1989–1998) 80
Table 5.3 Contributions as a development agency—the third boom
period (1999–2008, till 2013) 83
Table 6.1 Contributions as a city council—the first boom
period (1979–1988) 92
Table 6.2 Contributions as a city council—the second boom
period (1989–1998) 94
Table 6.3 Contributions as a city council—the third boom
period (1999–2008, till 2013) 100
Table 6.4 Municipal services Center’s income and expenditure
2009–2012 103
Table 7.1 CSR and social programs by Bintulu
Development Authority 110
Table 7.2 Community and social development projects by Bintulu
Development Authority 113
xiii
xiv
List of Tables
Table 7.3 Three stakeholder management cases—background

and development 119
Table 7.4 Balance sheet for financial years 2009–2012 128
Table 7.5 Profit and loss accounts for financial years 2009–2012 130
Table 7.6 Revenue of municipal councils in Sarawak 132
Table 7.7 Expenses of municipal councils in Sarawak 133
Table 7.8 Principal exports value and percentage distribution
in Sarawak 134
Table 7.9 Major investments in the oil and gas industry 135
Table 7.10 Cargo exported and imported at principal ports
in Sarawak 142
Table 7.11 Number of persons and average annual growth rate
by division in Sarawak 143
Table 7.12 Major confirmed investment projects at Samalaju
Industrial Park 145
Table 7.13 Bintulu central business district development
packages 147
Table 8.1 Commonality in corporate social responsibility models 163
1
Introduction
Abstract  This chapter presents the introductory contexts, purpose

statements, research aim, and research objectives of this CSR research.
The organization is tightly embedded in the society and the natural
environment. Managing diverse interests of its stakeholders can be an
uphill task. Lacking of qualitative narratives on a holistic CSR process
coupled with diverse CSR definitions in the field might have eroded
the actual values of CSR in contributing to an organization’s sustained
value creation capability. That said, whether practicing CSR can gen-
erate resilient socioeconomical performances simultaneously requires
further academic investigations. This research takes CSR in a holistic
approach, i.e., examining its adoption in a firm’s strategic planning pro-
cesses from multiple perspectives. It also accesses valuable governmental
datasets, covering the core functions of public sectors such as develop-
ment agency and city council which receive little attention in the cur-
rent literatures.
Keywords  CSR · Stakeholders · Holistic · Definitions · Value-creation

Strategic planning
© The Author(s) 2018 1

L. Teck Hui, Practising Corporate Social Responsibility in Malaysia,
DOI 10.1007/978-3-319-62476-1_1
2
L. Teck Hui
The world and its natural laws interact with human societies to affect
the health, activity, life, and well-being of all living things. Different
natural components of the earth interrelate to determine how the
human can make choices to support sustainable development. Scientific
principles are applied to create inventions to support human progress
and to establish a sense of community that supports human endeav-
ors. On the other hand, organizations are also established to address
the needs of communities via viable use of finite resources through eco-
nomic exchanges. Mobilization of economic activities relies on systems
of production, distribution, and consumption of goods and services.
Satisfying the diverse interests of living things is dependent on a com-
plex balance of interconnected factors. The organizations set corporate
missions, establish code of ethics, and develop crucial resource capabili-
ties in order to deploy and share better the finite resources with other
living things.
Economic growth, social progress, and ecological balance are the fun-
damental components of sustainable development. An organization,
be it public or private, is not detached from the society and the natu-
ral environment. Given the tight interconnectedness of human-made
systems, communities, and environments, it is an uphill task for the
organizations to balance the diverse interests of their stakeholders in a
fast-changing world. Living up ethically to the sound corporate respon-
sibilities whether can be something that actually has a bottom-line pay-
off for the organizations remains an enigma. Hence, there is an urgency
to look into the roles and manners of modern organizations in building
a better future without forsaking universal principles.
People cling on to or thrust aside social artifacts. Exploration and
exploitation with local and international mindedness can lead to new
understandings, opportunities, and changes. The object of management
is a human community held together by the work bond for a common
purpose. Management always deals with the nature of man, and with
good and evil (Drucker and Maciariello 2004). Its process in essence
is a system of interdependency (Miller and Whitney 1999). Pragmatic
management upholds the output, often justifying the inputs in terms
of the results. Corporate mishaps imperil modern enterprises’ influence
on others through morality practices. Accounting irregularities, insider
1 Introduction
3
trading, and misuse of entrusted power for personal gains, as reflected

in the corporate failures around the world, still pervasive in the behav-
ioral inputs to the modern management processes (Atkinson and Field
1995; Hui 2008, 2010). The pervasiveness of such phenomena in all
kinds of human-run organization can become an evolving organiza-
tional disease that impairs a firm’s long-term corporate sustainability.
As such, morality is still an issue of general concern especially where
the orthodox world of organizing is increasingly subjected to disorder-
ing. The existence of such trends provides another new opportunity to
understand organizations and to build more encompassing theories and
practices on corporate responsibility.
There is nothing inherently wrong with the fruits of affluent. The
current troubled world economies, corporate failures, and geopolitical
environments suggest that the perspective needs to be recalibrated. As
the steward of the earth, the human ought to safeguard the continuous
fruitfulness of the finite resources by developing all potentialities built
into the natural world (Atkinson and Field 1995; Hui 2008, 2010).
1.1 Purpose Statement, Aim, and Objectives

1.1.1 Purpose Statement
Milton Friedman (1970), a recipient of the 1976 Nobel Memorial Prize

in Economic Sciences, argues that the primary social responsibility of
business is to increase its profit without deception. There have been sev-
eral works written to point out the limitations of his works especially in
a more agile kind of economy (Denning 2013; Grant 1991; Husted and
Salazar 2006; Mulligan 1986). A firm develops, acquires, and utilizes
resources to create the capability to endure. An unspoken key tenet of
corporate social responsibility (CSR) is that the society, within which the
firm operates, grants it the license to operate. Unfortunately, the unyield-
ing need to maximize shareholder wealth has triggered corporate failures
(Chatterjee 2003; Jackson et al. 2013). In real world, any practice with
a negative externality that causes other to take a significant loss without
consent or compensation, can be seen as unethical (Cosans 2009). The
4
L. Teck Hui
firms ought to attain sustainability through balancing the complex rela-

tionship between current economic, environmental, and social needs,
also known as triple bottom line, in a manner that does not compromise
future needs (The Global Reporting Initiative [TGRI] 2002). Also, pre-
senting business as a combative pursuit may not be practical in the social
era that would reward fluid organizations and transient competitive
advantage (McGrath 2013; Merchant 2012). A responsible competitive
advantage does not monopolize, but create healthy competition in the
long run that motivates other firms to provide even better goods and ser-
vices (Hui 2008). Separately and together, the above developments raise
a relatively noble set of issues in CSR research to address the question of
what is the role of a firm in society.
A firm essentially is a strategic management system, concerned with
deciding on an actionable strategy for organizational effectiveness and
environment adaptation. Confirming and disconfirming in a stand-
alone context is incomplete to explain the strategic value of CSR. There
have been concerns associated with some prominent yet futuristic CSR
paradigms with: (a) limited empirical testing; (b) confinement largely to
specific projects and products rather than the entire firm; (c) incomplete
CSR definition constructs used in explaining what constitutes multi-
dimensional aspects of CSR; and (e) the tension between maximizing
profit for shareholders and optimizing returns for stakeholders (Crane
et al. 2014). In the current lackluster global economic and geopolitical
environments, it is critical therefore to consider the consequences of the
aforesaid concerns, and to re-examine the adequacy of the existing CSR
models that may not bode well for societies, ecologies, and firms.
That said, it is compelling to explore the current state of CSR being
practiced in major firms, in particular seeing the CSR intent, planning,
implementation, and evaluation processes, and how the CSR initiative
changes as the process of implementing and thinking about it changes
over time. To date, there has been little known about the areas as an
integrated, holistic process for sustained value creation. The actual posi-
tion and the interactive process of a typical CSR planning cycle within
the firms’ larger corporate strategic planning process, and the firms’
strategic actions on their CSR performance also require further exami-
nation and clarification. Taken together, exploration in the areas can
1 Introduction
5
provide a more complete comprehension on the existing CSR phenom-

enon and the sustained value creation capability of CSR initiatives.
1.1.2 Research Aim and Objectives
Against the above backdrops, the author conceives that CSR is much
more than an effective strategy or auxiliary social practice. Rather, it is
how the firm and its stakeholders interact and determine each other’s
future by sustaining the continuous fruitfulness of finite resources.
Thus, a central CSR question that this research aims to address is: does
a firm’s CSR and ethical practices really matter for it to fulfill economic self-
interests and societal expectations?
Using qualitative research methods, the research has the following
research objectives that seek to examine and understand holistically:
(a) the strategic intent and mission of a major corporatized govern-

mental development agency and municipal services provider in
Malaysia, Bintulu Development Authority (BDA), in engaging
CSR practices;
(b) the main features of stakeholder management mechanisms,
CSR planning and implementation processes, as well as major
stakeholder problem-solving incidences in order to ascertain
how the organization incorporates CSR strategies and programs
into its core routines for value creation;
(c) the management of CSR performance outcomes resulting from
the CSR initiatives and routines; and
(d) the value of CSR initiatives and sustained value creation capa-
bility of such initiatives to the organization in fulfilling its cor-
porate goals and the expectations of its stakeholders.
Sections 2.2, 2.4, 2.5, 2.6, and 2.7 in Chap. 2 provide the theoretical
cores for the above four research objectives.
Emerging markets constitutes over two-thirds of the world’s popu-
lation. The annual growth rates in gross domestic product (GDP) for
China and India have even sustained over the past few years at 7–10%.
6
L. Teck Hui
The emerging countries are gaining more economic and political clouts.
Country leaders, international managers, civil servants, and researchers
are in need of some guidance on how to respond to increased challenges
of practicing and maintaining corporate responsibility under the state
of uncertainty and value disparity. The emerging markets and emerging
firms can, therefore, be the important testing grounds for existing busi-
ness models and theoretical concepts. Malaysia was ranked among top
20 most competitive economies 2014–2015 by the World Economic
Forum (World Economic Forum [WEF] 2014). Among its 13 states,
Sarawak has one of the strongest economies and is the only state to
receive an A-rating from Standard & Poor’s (Renewable Corridor
Development Authority [RECODA] 2014). Located in Bintulu of the
Sarawak state, the premier energy town of Malaysia, BDA is a represent-
ative local government, a prevalent form of governmental institution,
which can reflect the state of practicing CSR in the areas in Malaysia.
To strengthen the analytic generalization of this research and to
lessen the critical of disadvantages in limiting the research sample, the
author also conducted online information and secondary data analyses
on five representative city councils in the world to find out the com-
monalities of their CSR and social practices with BDA. The city coun-
cils are, namely Hong Kong District Councils, Vancouver City Council,
London Councils, Sydney City Council, and New York City Council.
The author believes that the findings of this CSR research can be repli-
cated in other local governments.
What constitutes wealth creation remains an enigma when a firm is
deeply intertwined with the social milieu. It seems that the current chal-
lenging global economy can sound difficult for the firms to implement
CSR programs, not linked to their overall business strategies and profit
creation goals. This exploratory CSR study shows that by adhering to
good corporate citizen practices, the commitment to practice CSR as an
organizational core routine can be of value to the firms for demonstrat-
ing uniqueness that generates a form of corporate sustainability with
broader societal acceptance. It also informs the ongoing debate on the
strategic role of CSR, and highlights how governmental agencies adopt
CSR by providing novel descriptive data in the areas. This can be an
important first step for the subsequent large-scale quantitative research.
1 Introduction
7
1.2 Chapter Outline

This CSR intellectual discourse consists of nine chapters with the fol-
lowing organizations and brief contents. From Chaps. 1 to 3, the author
reviews the related theoretical foundations and analyzes the contextual
backgrounds of the study. In what follows, the author analyzes and pre-
sents the research datasets, discusses the research findings (Chaps. 4 to 7),
and highlights the strategic implications of this research (Chap. 8),
before making the concluding remarks (Chap. 9). Appendices present
the research methodological issues and CSR budgetary figures.
Chapter 1. This chapter presents the introductory contexts, purpose
statements, research aim, and research objectives of this CSR research.
An organization is tightly embedded in the society and the natural
environment. Managing diverse interests of its stakeholders can be an
uphill task. Lacking of qualitative narratives on a holistic CSR process
coupled with diverse CSR definitions in the field might have eroded
the actual values of CSR in contributing to an organization’s sustained
value creation capability. That said, whether practicing CSR can gen-
erate resilient socioeconomical performances simultaneously requires
further academic investigations. This research takes CSR in a holistic
approach, i.e., examining its adoption in a firm’s strategic planning pro-
cesses from multiple perspectives. It also accesses valuable governmental
datasets, covering the core functions of public sectors such as develop-
ment agency and city council which receive little attention in the cur-
rent literatures.
Chapter 2. This chapter surveys the related literatures in CSR and
strategy to establish the theoretical framework, in line with the research
aim and objectives. Section 2.1 reviews the trends of CSR concepts
and definition. A comprehensive CSR definition is, then, adopted. The
state of CSR trends and developments in Malaysia are also reviewed.
Section 2.2 deals with the related stakeholder literatures that form the
theoretical core to understand the state of BDA’s stakeholder manage-
ment in addressing multiple stakeholder interests. Section 2.3 discusses
the dimensions of CSR and ethical business practices with specific
examples given in each of the dimensions. Section 2.4 contends with
the literature on strategic intent and strategic mission, Sect. 2.5 deals
8
L. Teck Hui
with the dimensions of CSR planning and implementation processes,

and Sect. 2.6 reviews CSR performance issues. The author examines
two major theories of the firm, the characteristics of a good strategy, and
the salient features of a transformative CSR in Sect. 2.7.
Chapter 3. The contextual information of BDA is examined in
this chapter. Malaysia was placed in the world top 20 in the Global
Competitiveness Index 2014–2015 compiled by the WEF. Bintulu,
where BDA is situated, is located in Sarawak, Malaysian Borneo.
It is known as a town of resource-based industry, oil and gas, as well
as renewable energy in Malaysia. Sarawak, on the other hand, is the
only state in Malaysia rated A by the Standard & Poor. The discovery
of large reserves of natural gas offshore in 1968 saw the turning point
for Bintulu from a coastal settlement to a major industrial town in
Malaysia. BDA was formed in 1978 to act as the central governmental
body that can both coordinate and implement development projects on
its own in the Bintulu region.
Chapter 4. This chapter examines the strategic intent and mission of
BDA in engaging CSR. The corresponding structured and action plans
that attempt to translate them into reality are also highlighted. The
vision and mission statements suggest that BDA has a future point of
view on CSR. Two master development plans, prepared by the estab-
lished international consultants, have guided the orderly and integrated
socioeconomic developments of the Bintulu region since 1979. Also,
BDA is endowed with the authority of collecting land premium from
the sales of governmental state lands. The ability to generate its own
income increases the organization’s strategic flexibility to embed deeper
and broader CSR elements in all its corporate agendas for the better-
ments of its stakeholders.
Chapter 5. Whenever a firm organizes and strategizes its organiza-
tional routines, it triggers somehow the elements of the triple bottom
line. Chapters 5 and 6 analyze the core businesses of BDA as a gov-
ernmental development agency and municipal services provider, and
the embeddedness of CSR perspectives in the two statutory functions.
Chapter 5 analyzes the role of BDA as a governmental development
agency, which entails it to embark on residential, industrial, and com-
mercial development activities. Besides, BDA also undertakes business
1 Introduction
9
ventures in collaboration with private firms through incorporating

companies; an additional authority not enjoyed by other local authori-
ties. The organization’s major contributions, with CSR added on, in
the development of public infrastructures, industrial estates, housing
estates, and commercial centers over the past 35 years are presented.
Chapter 6. The major contributions of BDA, with CSR added on,
over the past 35 years in performing its municipal services provider role
are presented in this chapter. Municipal functions include provision
of sufficient public amenities and quality municipal services, engag-
ing in community services, conducting valuation on ratable properties,
and charging rates on buildings. Both municipal income and expendi-
ture have been on the rising trends, in line with the economic growth
in Bintulu. In 2012, the revenue and expenditure figures of BDA were
more or less the same as the combined figures of the North City and the
South City of the administrative capital of Sarawak, Kuching.
Chapter 7. Apart from integrating the triple bottom line elements in
the value statements and core routines of the organization, this chapter
analyzes the regular CSR and social programs carried out by BDA, three
major stakeholder management cases with international orientations,
CSR planning and control processes, and the corporate and social per-
formance associated with the core organizational routines as well as the
CSR programs. BDA possesses strategic flexibility to select the projects
that will yield maximized financial returns. At the same time, it also has
the required financial strengths to enter, at the command of its major
stakeholders, those projects whereby the social and/or environmental
impacts outweigh the financial returns. The shared values created by
BDA, reflected as better population growth, industrialization, invest-
ment growth, standard of living, and urbanization in Bintulu, have
broader and longer term of transformative impacts on its stakehold-
ers. The organization is able to fulfill its economic self-interests while
addressing fullest possible the expectations of stakeholders.
Chapter 8. This chapter presents a practicing CSR model of BDA and
the implications, contributions, and limitations of this research. A CSR
routine can be a valuable resource capability if a firm is capable of using
it to create competitive advantages that further its corporate agendas.
The holistic approach to researching and analyzing, used in this study,
10
L. Teck Hui
advances the knowledge in the areas. To lessen the critical of disadvantages

in limiting the research sample, this chapter presents also the CSR and
ethical practice commonalities between BDA and five other major city
councils. It seems that the resulting CSR and social practices do not differ
much from one council to another. The findings in this CSR research are
capable of making an analytic generalization to other major firms.
Chapter 9. This chapter concludes that by fulfilling an obligation
to make core organizational decisions with CSR added on, a firm can
demonstrate social responsibility values that benefit its stakeholders
apart from fulfilling its economic self-interests for achieving corpo-
rate sustainability. The large oil and gas reserves and richly resource-
based industries might have fueled the first 30 years of development
in Bintulu. In 2008, the region is embarking on the next 30 years of
growth with the launching of a renewable energy industrial park,
Samalaju Industrial Park, which has attracted confirmed investments
worth over Ringgit Malaysia (RM) 30 billion. This is a strategic indus-
trial diversification which brings additional sources of revenue to the
economy of Bintulu region.
Appendices. The appendices explain the rationales for choosing the
qualitative research methods, different data collection techniques, addi-
tional field works done, sample selection, and data collection process for
this CSR study. This research has the access to valuable governmental
datasets of a major governmental development agency cum city council,
BDA which plays multifaceted governmental, societal, and business roles.
It has interfaced extensively with both notable local and international
actors in fulfilling its statutory obligations. Along the line, the organiza-
tion’s years of budgetary figures with CSR added on are also presented.
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2
Theoretical and Managerial Framework
Abstract  This chapter surveys the related literatures in CSR and strat-

egy to establish the theoretical framework, in line with the research
aim and objectives. Section 2.1 reviews the trends of CSR concepts
and definition. A comprehensive CSR definition is, then, adopted. The
state of CSR trends and developments in Malaysia are also reviewed.
Section 2.2 deals with the related stakeholder literatures that form the
theoretical core to understand the state of BDA’s stakeholder manage-
ment in addressing multiple stakeholder interests. Section 2.3 discusses
the dimensions of CSR and ethical business practices with specific
examples given in each of the dimensions. Section 2.4 contends with
the literature on strategic intent and strategic mission, Sect. 2.5 deals
with the dimensions of CSR planning and implementation processes,
and Sect. 2.6 reviews CSR performance issues. The author examines
two major theories of the firm, the characteristics of a good strategy, and
the salient features of a transformative CSR in Sect. 2.7.
Keywords  CSR · Literature review · Definition · Malaysia

Stakeholder management · Ethical business practice · Implementation
Transformative CSR

DOI 10.1007/978-3-319-62476-1_2
14
L. Teck Hui
The concept of CSR has already existed in different names, forms, and
practices before the beginning of its growing popularity in the late
1990s, the aftermath of major economic crises and corporate debacles.
The CSR ranks high on corporate practice and academic research agen-
das. Regulators even introduced the Sarbanes-Oxley Act and the Higgs
Report for corporate reforms. The classic view holds that the fundamen-
tal goal of a manager is to maximize a firm’s profit. Conversely, the hap-
pening of corporate failures informs the importance of aligning a firm’s
strategy process with appropriate morality values and management prac-
tices in order to create, deliver, and share value.
This chapter has the following organization. Section 2.1 reviews in brief
the origins and evolution aspects of CSR concepts. A well-encompassing
CSR definition is, then, searched and adopted. The state of CSR develop-
ments in Malaysia, informed by the existing literature, is also presented.
Section 2.2 presents the core stakeholder literatures, seeking to investigate
the state of BDA’s stakeholder management mechanism in addressing
and balancing multiple stakeholder interests. Section 2.3 provides some
specific examples in each dimension of CSR and ethical business prac-
tices identified with reference to the CSR definition adopted in Sect. 2.1.
The categorizations of CSR and ethical business practices that form the
framework for analyzing the commonality of the practices between BDA
and five other major city councils in the world are presented in Sect. 8.2,
Chap. 8. In what follows, Sect. 2.4 deals with the literature on strategic
intent and strategic mission, Sect. 2.5 copes with the dimensions of CSR
planning and implementation processes, and Sect. 2.6 reviews CSR per-
formance issues. Before wrapping up Sect. 2.7, the author examines two
major theories of the firm, the characteristics of a good strategy, and the
salient features of a transformative CSR.
2.1 Corporate Social Responsibility Concept

and Trend in Malaysia
The antecedents of CSR concepts, definition constructs, and trends cov-
ering the period between the 1950s and 2010s have been reviewed exten-
sively in several works (Carroll 1999, 2008; Carroll and Shabana 2010;
2 Theoretical and Managerial Framework
15
Moura-Leite and Padgett 2011). The main idea of Bowen’s work (1953)
perhaps marked the beginning of the modern era of social responsibility
in the 1950s (Carroll 1999). Core areas of the CSR development dur-
ing the era included management as a public trustee, balanced claims to
corporate resources by the sum of interests, and relating Christian ethi-
cal principles of conduct to solve business problems (Frederick 1960),
although there was scant CSR definition in the literature (Carroll
1999). The 1960s marked a significant growth in the CSR literature in
attempting to more accurately state what CSR meant and its impor-
tance to business and society (Carroll 1999; Moura-Leite and Padgett
2011). At a macro-social level, many CSR issues, for example, the rela-
tionship between corporate social performance and financial returns
were superficially discussed (Lee 2008). The definitions of CSR contin-
ued to proliferate in the 1970s. Perhaps Carroll’s (1979) definition on
a theoretical four-part of CSR, namely economic, legal, ethical, and
philanthropic, embedded in a conceptual model of corporate social
performance was the earliest, more established framework of CSR
(Carroll 1999).
Carroll’s (1979) CSR framework was refined during the 1980s (Jones
1980; Wartick and Cochran 1985), the 1990s (Wood 1991), and the
2000s (Schwartz and Carroll 2003). During the 1980s and 1990s,
there were more empirical studies, fewer original but refined CSR
definitions. The CSR concept served as the building block for alterna-
tive or complementary themes (Carroll 1979, 2008). From the 1990s
onward, the concept of CSR has become almost universally sanctioned
and promoted by all constituents, including the international organi-
zations such as the United Nations and the World Bank (Moura-Leite
and Padgett 2011). There were more and continuous attentions given
to CSR measurement initiatives, diverse themes, and empirical studies
that sought to reconcile CSR theory with practice. The scenarios seem
to continue to the 2000s, as the field has evolved into a highly heteroge-
neous literature.
Following the major corporate debacles and economic crises, happen-
ing in the first decade of the new millennium, there were tighter institu-
tional reforms to make sustainable development in an important source
of institutional legitimacy of firms. CSR becomes an important strategic
16
L. Teck Hui
issue for major firms in the 2000s. It attracts a large number of research
attention in numerous themes and settings (Carroll and Shabana 2010;
Moura-Leite and Padgett 2011). At the same time, it also evolves into
a highly heterogeneous literature with some areas relatively unexplored
and lacking empirical research (Aguinis and Glavas 2012). The quests to
revise, adapt, and find business relevance of the existing CSR literatures
still continue. New perspectives will almost be sure coming up in com-
ing years.
In summary, an organization exists for legitimate causes. To be profit-
able perhaps is the starting point for many firms. The firms make prof-
its when society places demand on their goods and services. Through
the continuous cycle of wealth creation, distribution, and regeneration,
they can afford to offer more jobs to uplift the living standard of the
society. Hence, the long-term financial viability to justify for a going
concern status will be the goal of all the firms. In 2011, the European
Commission (European Commission [EC], 2011, p. 6) makes an
account of the CSR definition as:
The responsibility of enterprises for their impacts on society […]. To fully

meet their CSR, enterprises should have in place a process to integrate
social, environmental, ethical, human rights, and consumer concerns into
their business operations and core strategy in close collaboration with
their stakeholders, with the aim of: maximizing the creation of shared
value for their shareholders and stakeholders at large; and identifying,
preventing, and mitigating their possible adverse impacts.
In this research, the author adopts the definition as the well-encom-

passing explanation on the meaning of CSR. CSR can be seen as an
obligation of the firms to act in accordance with moral, legal, environ-
mental, and social concerns, while finding solutions to address the over-
lap where their economic self-interests and stakeholders’ expectations
intersects.
To date, CSR studies focusing on the Malaysian contexts have received
scant international attention. Some of the published studies cover the
areas on the CSR disclosure process (Andrew et al. 1989; Teoh and
Thong 1984), the increased level of CSR awareness in Malaysia (Ahmad
17
Table 2.1 Corporate social responsibility trend and development in Malaysia

CSR research Finding, trend, and development
At the country level
KPMG International - The rate of corporate social reporting in the larg-
(2013) est 4100 companies in 41 countries was 71% on
average in 2012 (2011: 64%), with the highest rate
found in Denmark (99%) and France (99%). The
rate for Malaysia was 98%
United Nations - The Malaysian government has contributed to
Children’s Fund (2011) a positive CSR environment especially under its
economic development plans, namely the Ninth
and Tenth Malaysia Plans. The GLGs transforma-
tion manual guides the CSR adoption by the GLGs.
Increased investment in CSR from palm oil industry
has also been recorded
Adams (2010) - In Malaysia, the adoptions of voluntary CSR report-
ing and standards, though still nonmandatory, are
strongly supported by the Malaysian government.
The Stock Exchange of Malaysia, Bursa Malaysia,
in September 2006, asked that all the listed issuers
and their subsidiaries to provide a description of
their CSR activities or practices. It also launched a
CSR framework as a guide for public listed compa-
nies in implementing and reporting on CSR
Lu and Castka (2009) - The paper investigates the status of CSR, differ-
ent CSR practices, and future diffusion of CSR in
Malaysia. Several Malaysian legislations, namely
the Environment Quality Act (1974), the Anti-
corruption Act (1977), and the Human Rights
Commission of Malaysia Act (1999), incorporate
CSR elements. But, the confusion over the meaning
of CSR, the prevalent use of CSR as a public rela-
tion tool, and mandatory versus voluntary CSR are
among the issues that impede wider adoption of
CSR in the country
At the industry and firm levels
Anas et al. (2015) - This research analyzes the extent and quality of CSR
information disclosures in the 2008 annual reports
of the Malaysian public listed companies (PLCs),
after Bursa Malaysia launched its CSR Framework
(effective in 2007) that guides the PLCs’ CSR disclo-
sure. The CSR framework seems to have an impact
on the level and systematic CSR reporting practices,
but the quality of CSR disclosure is considered
minimal
(continued)
18
L. Teck Hui
Table 2.1 (continued)
CSR research Finding, trend, and development
Hamid et al. (2014) - A case study on a large GLC’s initiatives in support-
ing the governmental information and communi-
cations technology agendas, in line with the GLGs
transformation manual’s CSR guide
Hazlina and Ramayah - The paper finds that while entrepreneurial ventures
(2012) in Malaysia become quickly aware of the more seri-
ous consequences of not adopting CSR practices,
the concern for social issues may still be lacking
Yam (2013) - The research finds that the majority of the
Malaysian property developers have their corporate
CSR initiatives in place, and there are variations in
their approaches and reporting processes
Ting et al. (2010) - Using a scorecard devised to TGRI framework, this
study provides an insight into the positive influ-
ence of management systems on CSR performance
among firms in Malaysia
Nejati and Amran (2009) - The findings of this research show that Malaysian
small and medium-sized enterprises were mostly
practicing CSR because of their own beliefs and val-
ues, religious thoughts, and pressure and encour-
agement from stakeholders
Amran and Siti-Nabiha - This study uncovers some of the motives for
(2009) the corporate social reporting by companies in
Malaysia through the institutional theory perspec-
tive. It seems that the rising trend in the number of
reporters can only find its explanation in Western
mimicry
Janggu et al. (2007) - Analyzing the corporate annual reports of the
companies from 1998 to 2003, the research finds
that CSR level of industrial companies in Malaysia is
increasing both in terms of amount of the disclo-
sure and the number of participating companies
and Rahim 2003; Rashid and Ibrahim 2002), the corporate social report-
ing (Thompson and Zakaria 2004), the level of awareness and the per-
ceptions of accounting professionals of the meaning of CSR (Zulkifli
and Amran 2006), and the CSR practices and disclosure by government-
linked companies (GLGs) as a result of the introduction of the GLGs
transformation manual or the Silver Book (Atan and Razali 2013;
19
Esa and Ghazali 2012; Ghazali 2007; Rahman et al. 2011). Besides,
other studies focus more widely on the CSR disclosure issues such
as levels of disclosure, types of disclosure, and quantity of informa-
tion disclosed (Ahmad and Sulaiman 2004; Jamil et al. 2002; Janggu
et al. 2007).
Malaysia was ranked among top 20 most competitive economies
2014–2015 by the World Economic Forum, ahead of Australia (no. 22)
(WEF 2014). Paradoxically, it had also unsatisfactory ranking, i.e.,
no. 53 (Australia no. 9) in the Corruption Perceptions Index 2013 by
the Transparency International (Transparency International, 2013).
The state of CSR trends and developments in the country remains an
enigma. Table 2.1 below presents some further research works, which
show mixed pictures on the trends, written in the areas.
A local government like BDA is the level of government at the bot-
tom of a pyramid of governmental institutions, with the national gov-
ernment at the top and the state government at the middle. Being the
closest to the people, its public policies will have direct impact on the
local communities as well as economic and environmental infrastruc-
tures. Thus, this CSR research is reflective of a mainstream perspective
in the areas on the state of practicing CSR in Malaysia that has not
received enough attention in the current literature.
2.2 Stakeholder Theory

A stakeholder is any group or individual who can affect or is affected
by the achievement of a firm’s objectives (Emshoff and Freeman 1978;
Freeman 1984). A central claim of the stakeholder theory is the pur-
pose of business is creating value for various stakeholders (Freeman et al.
2010). The work of Freeman (1984) is widely regarded as the intellec-
tual discourse that popularizes the modern stakeholder management
concept. Rather than being an agent of shareholders only, the stake-
holder management concept conjures up new roles for management in
managing and balancing interests of all stakeholders. This represents a
stakeholder democracy as the stakes of multiple stakeholders are repre-
sented fairly in the governance of modern corporations (Bendell 2007;
Matten and Crane 2005).
20
L. Teck Hui
Freeman (1984, Chap. 3) advocates a whole stakeholder approach

to strategic management. He argues that a firm possesses a stakeholder
management capability when it is able to put these three levels of analy-
sis together: first, it understands its stakeholder map and the stakes of
each group; second, it has standard organizational processes to take
these groups and their stakes in account routinely; and, third, it imple-
ments a set of transactions to balance the interests of these stakeholders
to achieve the organization’s purposes. Donaldson and Preston (1995)
synthesize the evolving stakeholder literature after a decade of Freeman’s
book (1984). They find four different types of stakeholder theory in the
literature, mutually supportive and found in the said work of Freeman:
first, descriptive stakeholder theory which describes the firm as a collec-
tion of cooperative and competitive interests possessing intrinsic value;
second, instrumental stakeholder theory which establishes a framework
for examining how the management of stakeholders connects with tra-
ditional corporate objectives (for examples, profitability and growth);
third, normative stakeholder theory which assumes that all interests of
stakeholders are legitimate, and of intrinsic value; and fourth, mana-
gerial stakeholder theory which recommends attitudes, structures, and
practices that, taken together, constitute stakeholder management.
The work of Laplume et al. (2008) seeks to address a gap in the
stakeholder literature after the work of Donaldson and Preston (1995)
published. Reviewing the key stakeholder theory literature developed
between 1984 and 2007, they find five major themes as stakeholder def-
inition and salience, stakeholder actions and responses, firm actions and
responses, firm performance, and theory debates. In what follows, four
out of the five themes are encapsulated. They are also used as the guid-
ing framework in this CSR research for designing a related interview
questionnaire and for analyzing three stakeholder management cases
later.
Stakeholder definition and salience. Stakeholders are those with
material interests in the firm (Cragg and Greenbaum 2002) and have
resources to influence its survival (Pajunen 2006). The three most
important attributes that determine the stakeholder salience to man-
agers are power, legitimacy, and urgency of stakeholders. Their rela-
tive importance determines the level of stakeholder salience to which
21
managers give priority to competing stakeholder claims (Agle et al.

1999; Mitchell et al. 1997). Besides, stakeholder culture (Jones et al.
2007, p. 153) and industry’s politicized framing (Fineman and Clarke
1996) could also vary the stakeholder salience.
Stakeholder actions and responses. Forming coalitions (Neville and
Menguc 2006), influencing strategies (Frooman 1999), altering power
and legitimacy (Welcomer 2002), and configuring relationship structure
(Friedman and Miles 2002) are the means stakeholders can influence
the firms. Desirability to protect interests (Rowley and Moldoveanu
2003), possessing the capability (Rowley and Berman 2000), or per-
ceptions on the target organization that it is responsive to their needs
(Butterfield et al. 2004) are some attributable factors that will mobi-
lize the stakeholder groups. The groups will support the firms when
the firms are not a source of significant environmental impact (Hendry
2006), the firms are reliable, legitimate, accountable, and estab-
lished (Choi and Shepard 2005), or the firms have treated them fairly
(Hosmer and Kiewitz 2005).
Firm actions and responses. The firms can take some of the following
measures to gain supports from their stakeholders: building stakeholder
trust (Heugens et al. 2002); making charitable contribution (Adams
and Hardwick 1998; Haley 1991); managing organizational iden-
tity (Scott and Lane 2000) and reputation (Carter 2006); and having
stakeholder representation on corporate boards (Luoma and Goodstein
1999). By maximizing the long-run value of the firms (Jensen 2002),
taking the perspective of multiple stakeholders (Schwarzkopf 2006),
and the use of mediation (Lampe 2001), the firms can gain balanced
stakeholder interests.
Firm performance. Stakeholder management connects the social and
the financial performances of the firm (Barnett 2007; Berrone et al.
2007; Bouckaert and Vandenhove 1998). On the other organiza-
tional outcomes, it increases societal legitimacy (Heugens et al. 2002),
improves organizational learning (Roome and Wijen 2006) and inno-
vation (Harting et al. 2006), and reduces hostile takeover frequency
(Schneper and Guillen 2004). It may also jeopardize chief executive
office’s personal wealth (Coombs and Gilley 2005).
22
L. Teck Hui
The stakeholder approach ought to identify the multiple stake-

holders, internal and external to the firms (Andrew 1971; Hofer
and Schendel 1978). Integrating the stakeholder and CSR perspec-
tives within strategic management mechanisms and day-to-day opera-
tions can increase organizational responsiveness to stakeholders’ needs
(Minoja 2012; Werther and Chandler 2011). But, it may also increase
unnecessarily managerial opportunities (Cennamo et al. 2009). Hence,
a convergence between strategy and stakeholder management approach,
in tandem with broader organizational strategic missions, core routines,
CSR values, and performance goals, reflected through major stake-
holder problem-solving initiatives that balance the economic and social
interests of the firms must be searched and examined (see the research
objective stated in Sect. 1.1.2b, Chap. 1).
2.3 CSR and Ethical Business Practices

This section discusses the dimensions of CSR and ethical practices with
specific examples given, in line with the CSR definition (EC 2011) pre-
sented in Sect. 2.1 (see also Carroll 1979; Freeman 1984; Friedman
1970; Porter and Kramer 2011), as per Table 2.2.
The presentation of actual CSR and ethical practices, used in the real
world by the firms, would make the field of CSR theory and research
more approachable and valid to managers and practitioners. As the field
of CSR is evolving to a highly heterogeneous literature, managers and
scholars in all forms of organizations would like to embrace a more
encompassing and coherent set of CSR practices in order to prepare
them better to respond to complex ethical issues encountered.
2.4 Strategic Intent and Strategic Mission

Firms develop strategic intent and strategic mission, resulting from
an understanding on their internal organizations and external forces,
to form the basis of communication to their stakeholders (Hitt et al.
2001). Situated at the topmost of the hierarchy of objectives, the
23
Table 2.2 Corporate social responsibility and ethical practices

Taxonomy of responsibility Example of practice
(a) E
conomic /customer - Provide extra services to people/customers, give
concern customers value for their money, and demonstrate
the willingness to add value to customer well-being
(Hazlina and Ramayah 2012);
- Provide full product disclosure, give truthful promo-
tion, give rapid and respectful responses to customer
comments/concerns, and sell products safe to use
(Lamberti and Lettieri 2009; Spiller 2000); and
- Contribute to governmental tax revenue growth, cre-
ate job opportunities, achieve sound financial posi-
tions, and contribute to personal income per capita
and economic growth (Slaper and Hall 2011)
(b) Social - Engage in community activities, create job opportuni-
ties for local communities, concern for social welfare,
and share knowledge and resources with others
(Hazlina and Ramayah 2012);
- Involve directly in community projects and affairs
and support for education and job training programs
- Reduce violent crimes per capita, relative poverty, and
average commute time, and increase percentage of
population with a post-secondary degree or certifi-
cate (Slaper and Hall 2011)
(c) Environment - Adopt environmental policies, conduct environmen-
tal audit, establish effective emergency response,
waste management, and energy consumption, and
introduce environmental requirements for suppliers
- Improve air and water quality, waste management,
land use, energy consumption, and pollutants control
(Slaper and Hall 2011)
(d) Legal/human rights - Endorse equal employment opportunities (Lamberti
and Lettieri 2009; Spiller 2000);
- Promote equity and access to social resources, health,
and well-being, and increase female labor force par-
ticipation rate (Slaper and Hall 2011); and
- Adhere to laws and regulations and adopt code of
ethics (Kaptein 2004)
(e) Discretionary - Generous and innovative giving, carry out an
employee-led approach to philanthropy, and cam-
paign for environmental and social change (Lamberti
and Lettieri 2009; Spiller 2000);
- Do charitable contributions and collaborate with
other organizations to promote social causes (Slaper
and Hall 2011); and
- Perform more strategic philanthropies (Saiia et al. 2003)
(continued)
24
L. Teck Hui
Taxonomy of responsibility Example of practice
(f) E
thical business - Handle business based on ethical standard and con-
practices sideration, engage in fair, open, and honest market-
ing practices, be honest and transparent in business
dealings, take responsibility and be accountable for
own actions, and admit mistakes and inform the
affected party that they have occurred (Hazlina and
Ramayah 2012);
- Give fair remuneration and job security to employees,
provide a healthy and safe work environment, and
provide learning and personal work development
opportunities (Lamberti and Lettieri 2009; Spiller
2000);
- Formalize corporate ethics activity, for instances,
ethics-oriented policy statements, formalization of
management responsibilities for ethics, top man-
agement and departmental involvement in ethics
activities, and evaluation of ethics program activities
(Weaver et al. 1999);
- Engage in fair trade activities (Audebrand and
Pauchant 2009);
- Invest capital in socially responsible funds (Gond and
Piani 2012); and
- Establish formal organizational structures to deal
with CSR and ethical issues (Treviño and Nelson 2010)
(g) S takeholder engage- - Organize open communication with financial com-
ment munity, customer dialogue, and public dialogue
(Lamberti and Lettieri 2009; Spiller 2000);
- Set up a dedicated hotline or helpdesk to take ade-
quate measures against improper conducts (Kaptein
2002);
- Develop principles governing stakeholder relations
(Kaptein 2004); and
- Hold discussions with stakeholders and employees
on the subject of ethics (Freeman 1984; Trinkaus and
Giacalone 2005)
(h) Shared value - Generate good rate of long-term return to sharehold-
ers, encourage staff ownership of shares, signal clear
dividend policy and payment of appropriate divi-
dends, ensure corporate governance issues are well
managed, and formulate credible long-term business
strategy (Lamberti and Lettieri 2009; Spiller 2000);
and
- Re-conceive products and markets, redefine produc-
tivity in the value chain, and strengthen local industry
clusters (Porter and Kramer 2011)
25
externally focused vision and mission statements describe the firms’

central purpose and, scope of operations, and guide the direction of
the firms’ strategy formulation and implementation (Ireland and Hitt
1992; Leuthesser and Kohli 1997). A vision informs what the firms seek
to do and become. By relating to the firms’ stakeholders and business
domains in which they will operate, a mission statement identifies what
the firms are going to do in order to attain their vision (Drucker 1973;
Johnson and Scholes 1993).
Strategic intent is the leveraging of the firms’ internal resource capa-
bilities and core competences in attaining their goals. Three essential
attributes of strategic intent are: first, it conveys a sense of direction
which implies a competitively unique viewpoint on the long-term mar-
ket that the firms want to build; second, it conveys a sense of discov-
ery to employees that the firms have a differentiated viewpoint about
future; and third, it implies a sense of destiny that it is a goal that the
firms’ employees perceive as inherently worthwhile. In short, strate-
gic intent ties intimately the firms’ self-interests to their stakeholders,
which reflects the unique ways the firms can use to exploit competitive
advantage (Hamel and Prahalad 1989, 1994; Sherman 1995). Bartkus
and Glassman (2008) argue that all stakeholders are interested to
understand how the firms’ CSR position affects their well-being. They
expect the firms’ actions are consistent with their publicized statements.
Therefore, what are the strategic intents and missions of the firms in
engaging CSR practices and translating the visionary CSR value state-
ments into concrete business and operational plans require further
investigation (see the research objective stated in Sect. 1.1.2a, Chap. 1).
2.5 Corporate Social Responsibility

and Strategic Planning
Strategic mission and strategic intent are not the end goals of CSR. For
any CSR plan to be meaningful, the firms will need to translate them
into action for value creation via their strategic planning process.1 This
section looks into the integration of CSR in the strategic planning pro-
cess of a firm.
26
L. Teck Hui
2.5.1 Strategic Planning
A firm’s strategic planning has three core components, namely strategic

analysis, strategic choice, and strategic implementation (Johnson and
Scholes 1993). Conventional systematic strategic planning, apt to affect
the long-term corporate direction of a firm, has been a major formal-
ized organizational routine to strategy formulation and implementation
that assumes the future will be more or less like present (Hamel 1996).
The improvised mode of strategic planning, more adaptive to changes,
at times, would be more appropriate in the increased volatile business
environments (Falshaw et al. 2006; Song et al. 2011). As the financial
return of major firms grows with sophistication in their strategic man-
agement (Pekar and Abraham 1995), a proper strategic planning process
is still important to explain the performance of major firms.
2.5.2 Integrating Corporate Social Responsibility

into Strategic Planning
A firm’s corporate social responsiveness processes depend on its environ-

mental assessment, stakeholder management, and issues management
(Wood 1991). Explicit conversation with stakeholders in the CSR strat-
egy-making process will be necessary to increase the success probability
of CSR strategies (Miles et al. 2006). Hence, a broad adoption of CSR
plans would require the integration of such plans into the firm’s stra-
tegic planning process. Crane et al. (2008, p. 417) identify three typi-
cal phases in integrating CSR into strategic planning would be, namely
planning, implementation, and evaluation. Setting goals for CSR and
defining mission statements is the first step in implementing CSR (see
Sect. 2.4). Then, the firms must design CSR strategies that will get
them from their current position to a desired future state. Section 2.7
will examine in greater detail what are the characteristics of a good strat-
egy. Implementing actions must with CSR added on, for instances,
introducing codes of conduct, building strategic management based on
the principles of stakeholder management (Freeman 1984, pp. 52–192;
Freeman et al. 2010, pp. 83–120), and assessing the results of CSR
implementation (see Sect. 2.6).
27
CSR can be a mean to evaluate the firms’ external environment in

term of its stakeholder groups, and a core competence of the firms that
draws resource capabilities throughout the organization (Werther and
Chandler 2011, p. 39). It creates shared value2 between the strategy of
the firms and the social dimensions of competitive context (Porter and
Kramer 2006, 2011). A CSR is strategic when it demonstrates the com-
bination of four elements, namely embedded within the firms’ strategic
planning process, related to mainstream operations of the firms, incor-
porated a stakeholder perspective for effective influencing, and shifted
from a short-term perspective to managing the firms’ resource capabili-
ties and relations with key stakeholders over the medium to long term
(Porter and Kramer 2002). In other words, a strategic CSR occurs when
there is a direct effect of the firms’ operations on society and environ-
ment and vice versa. It is crucial, therefore, to proactively integrate CSR
into the strategic planning of the firms for it to be strategic.
Organizations are increasingly expected to address the needs of their
internal and external stakeholders. A CSR policy is concerned with
both the economic and the social viabilities. Actionable implementation
plans make real the firms’ strategic intent and mission. Hence, for any
CSR initiatives to rise above more than public relation tools, how they
are translated into action for value creation and attract regular resources
allocation in the firms’ strategic planning process deserve research atten-
tion (see the research objective stated in Sect. 1.1.2b, Chap. 1).
2.6 Corporate Social Responsibility and Triple

Bottom-Line Performance
Confining corporate performance measurements to traditional financial
bottom line is an inadequate expression of the total value equation as
firms nowadays create value in multiple dimensions. Elkington (1994,
p. 90, 1998, 2007) coins the triple bottom-line concept which considers
the interdependencies of environmental, social, and economic aspects
in achieving business sustainability and common good. This also echoes
with another perspective that the corporate social performance-relevant
outcomes include the triple bottom-line categories of economic, social,
28
L. Teck Hui
and natural environment impact (Wood 2007, 1991). The triple bot-
tom-line firms provide the democratic freedom for stakeholders to col-
laboratively define value (Glavas and Mish 2014).
By contrast, Carroll (1979, 1991) hints that fulfilling economic
obligations is the primary concern of a business organization. The
four-part CSR definition might be presented as a CSR pyramid with
economic responsibility depicted at the base of the pyramid, and then
built upward through legal, ethical, and philanthropic responsibilities.
Existing research findings show mixed results on the impacts of CSR
have on the firms’ financial performance: first, a positive relationship in
the contexts of, for examples, stakeholder theory perspectives (Ruf et al.
2001), corporate charitable giving (Brammer and Millington 2008),
responsible business practices toward primary stakeholders (Mishra
and Suar 2010), corporate commitment to business ethics and finan-
cial reporting quality (Choi and Pae 2011), and ISO 14001 certification
(Jong et al. 2014); second, a negative relationship in the contexts of, for
examples, managerial entrenchment practices (Surroca and Tribó 2008)
and socially responsible investments (Makni et al. 2009); and third, a
neutral or mixed relationship in the contexts of, for examples, the role
of intangible resources (Surroca et al. 2009, neutral), the impact of envi-
ronmental certification (Bouslah et al. 2010, mixed), and the periods of
uncertainty during the Euro-zone crisis (Ducassy 2013, mixed).
Being socially responsible does not mean the firms have to treat
themselves as less important than their competitors. Incorporating
CSR, only in the after-profit decision-makings may create hidden
long-run costs for the firms. By focusing as well on the socially respon-
sible sources from the inputs to the management processes, the firms
could be compensated in the longer run by broader acceptance of
their goods and services (Ambec and Lanoie 2007; Hui 2008, 2010).
Strategic intent and mission statements can indicate the firms’ intended
CSR trajectories. It is vital that the firms’ organizational actions and
results management match with their CSR plans. Often, it is what get
measured, get done. In tandem with the research objective stated in
Sect. 1.1.2c, Chap. 1), a regular and systematic review of organizational
performances that upholds the right corporate and social performances,
and contributes to better CSR adoptions in the mainstream business
processes merits attention.
29
2.7 Corporate Sustainability

The intersection of organizational internal factors and external envi-
ronments is a dynamic and complex roadmap of interdependency.
Maximizing financial return for shareholders while balancing the inter-
ests of other stakeholders represent huge challenges for managers who
need to develop unique resource capabilities in order to meet such chal-
lenges. This section focuses, first, two overriding theories of the firm, the
industrial organization, and the resource-based view theory. The theories
dominate the paradigms on how the firms should develop, connect, lev-
erage, defend, and maintain organizational resource capabilities through
strategic planning process in order to create and sustain competitive
advantages. Then, the author examines the salient characteristics of a
strategic asset before presenting what constitutes a transformative CSR.
2.7.1 Theories of the Firm
The industrial organization or structure-conduct-performance paradigm

is built upon several seminal contributions (for examples, Bain 1951,
1956), culminated in the celebrated works of competitive strategy by
Porter (Porter 1980, 1985). The paradigm purports that a firm would
generate the above-the-average economic return if it can effectively con-
trol the reciprocal relationship between the environment and its strat-
egy (Henderson and Mitchell 1997; Hofer and Schendel 1978). Porter
(1980) argues that the collective strength of five competitive forces,
namely threat of new entrants, bargaining power of suppliers, bargain-
ing power of buyers, rivalry among competitors, and threat of substi-
tute products, determines an industry’s attractiveness. In a further work,
Porter (1985) argues that firms can choose to apply either of the three
generic strategies, namely cost leadership, differentiation, and focus to a
broad market or to a narrowly focused market to protect them against
the five competitive forces. Attempting to pursue all the generic strate-
gies at the same time would lead to a mediocre performance.
There are limitations associated with the industrial organization per-
spective. It presents business as a combative pursuit that takes a narrow
30
L. Teck Hui
view of a firm’s operating environment, collectively shaped by the

Porter’s five competitive forces. In practice, numerous other stakehold-
ers can alter as well dramatically the firm’s competitive environment
(Werther and Chandler 2011). The perspective also takes insufficient
account into the differences in characteristics among firms. The differ-
ences are likely to be predictive of the firms’ ability to thrive in a given
environment (Barney 1986; Collis 1991; Wernerfelt 1984).
Many strategy scholars consider the work of Penrose (1959) as the
intellectual foundation for the modern resource-based view of the
firm. Positioned in relation to the structure-conduct-performance
paradigm, the resource-based view purports that the unique combi-
nation of a firm’s internal resource capabilities is the key to generat-
ing the above average return (Barney 1986; Collis 1991; Peteraf 1993;
Wernerfelt 1984). Resources can either be tangible or intangible inputs
into a firm’s production process. They consist of three major forms;
physical, human, and organization capital (Barney 1991; Grant 1991).
Capabilities are the firm’s ability to deploy and integrate the resources
to achieve desired organizational ends (Hitt et al. 1999). The firms may
sustain their competitive advantage over a longer period of time if one,
or any combination, of these conditions exist: first, they enjoy better
expectations of future resource value; second, the resource capabilities
are path dependence or causally ambiguous; and third, there is social
complexity in which two or more different social and business systems
combined to create excessive variations for a system to emulate accu-
rately (Barney 1986, 1995; Conner 1991; Dierickx and Cool 1989;
Mahoney and Pandian 1992).
A capability should be neither too simple that it is highly imitable,
nor too complex that it defies internal steering and control (Schoemaker
and Amit 1994). Lockett and Thompson (2001) find that the prob-
lems of causal ambiguity, tautology, and firm heterogeneity would
have limited the explicit use of the resource-based view. Also, the con-
texts in which the firms operate will influence directly their ability to
build core competencies. In practice, there are many behavioral factors,
for instance, political infighting can intervene to prevent them from
building intended core competencies for generating above-the-average
returns (Ludwig and Pemberton 2011; Werther and Chandler 2011).
31
Several scholars call for further theorizing and research on the inde-
terminate nature of organizational resource and value, as well as the
narrow conceptualization of a firm’s competitive advantage that the
resource-based view presents (Barney et al. 2011; Kraaijenbrink et al.
2010). The resource-based view theory alone cannot provide a complete
explanation for the firm performance.
2.7.2 Strategic Asset
Some empirical reports suggest that certain percentage of variance in

profitability could be attributed to the industrial organization causes. At
the same time, some percentages were also explained by the resource-
based view premises. Both paradigms determine the firms’ economic
performance at different magnitudes (Hawawini et al. 2003; McGahan
and Porter 1997). Peteraf and Bergen (2003) develop a market-based
and resource-based framework that complements current resource-based
thinking for scanning complex competitive fields. They argue that the
industrial organization and resource-based view theory of rivalry and
performance are complementary, rather than competing frames.
Amit and Schoemaker (1993, pp. 36, 43–44) coin the proposition
of strategic assets that they define as “the set of difficult to trade and
imitate, scarce, appropriable and, specialized resources and capabilities
that bestow the firm’s competitive advantage.” Technological capabil-
ity, fast product development cycles, brand management, a favorable
cost structure, buyer–seller relationships, etc., are some possible exam-
ples of strategic assets. The value creation capability of these strategic
depends partly on their pertaining unique characteristics as well as on
the extent to which they overlap with the industry-determined strate-
gic factors. This is reaffirmed later in several works, for examples, on
competitive advantage based on the combination of a series of com-
pounded assets (Schendel 1994); the strategic human resource man-
agement systems and routines developed over time (Coff 1997; Wright
et al. 2001); the possession of highly demanded and inelastic strategic
supplies in a fragmented industry (Hui 2004); the ability to integrate
CSR with other functional and generic strategies (Sangle 2009); and the
interactive effect between internal and external drivers on a proactive
32
L. Teck Hui
environmental strategy (Menguc et al. 2010). Organizational resource

capabilities must be effectively integrated and managed to realize the
synergy (Harrison et al. 2001). Effective strategy is possible when there
is good fit between a firm’s internal characteristics and external environ-
ments (Andrew 1971; Platts 1995). To sustain competitive advantage,
the firms must view themselves as an integrated bundle of the industrial
organization and the resource-based view applications that align closely
with their organizational goals (Hitt et al. 2001).
2.7.3 Transformative Corporate Social Responsibility
From the extent of the literature reviewed above, the author posits that
a sustained value-creating capability of a CSR initiative possesses several
of the following vital characteristics, more complete than the existing
descriptions on a strategic CSR.
(a) The organization exists legitimately. Under the corporate person-
ality doctrine, there are case law and statutory provisions to lift
the corporate veil and to hold the shareholders personally liable
for the company’s unlawful formation and conducts (Nyombi
2014). A firm exists to promote legitimately a particular corpo-
rate object or a combinative of goals without breaching statu-
tory provisions. It has persistent desire to behave appropriately
within a social system.
(b) There are healthy institutional structures and environments govern-
ing the organization’s operations. There are sufficient provisions
of organizational internal structures such as code of conducts
and corporate governance as well as enforceable external regula-
tory frameworks such as the collection of political environment,
enforceable laws, and industrial relation to govern the continu-
ous legitimate existence and operations of the firm.
(c) CSR culture is pervasive at all levels of the organization. Top
management and all managers with responsibilities for sub-
subgroups within the firm have the ability and decisive author-
ity to build the commitments needed across the organization
and to utilize critical internal resource capabilities to promote
33
essential corporate causes and CSR initiatives. At best, they can

also assert suitably some influences to mobilize external resource
capabilities and primary stakeholder group to collectively
advance the firm’s corporate and social agendas that it alone
cannot achieve.
(d) CSR elements are tightly embedded in the organization’s main-
stream operations as well as in its important ad hoc initiatives.
The criterion is in line with a key feature of strategic CSR. For
a CSR perspective to be important, it must be integrated in
the firms’ core organizational routines and strategic planning,
and that it contributes to attaining major corporate goals with
noticeable triple bottom-line impacts. This is usually evidenced
through the firms’ budget and other organizational resources
allocations, rather than a simple CSR slogan or value statement.
(e) The organization has the financial flexibility, i.e., it is able to
achieve the triple bottom-line simultaneously or at least a healthy
financial return. Poor financial capability handicaps major busi-
ness and CSR plans. In this circumstance, social programs
could be quite easily mistaken as an act of window dressing to
disguise unsatisfactory corporate earnings performance. This is
not to say being less financially viable is difficult to carry out
high-impact CSR programs. Somehow, healthy financial posi-
tions are always an indispensible asset of the firms in making
their social programs look more legitimate and actionable. Such
firms usually have the strategic flexibility to either reap greater
financial returns for their shareholders in relation to other social
and organizational causes or to balance financial returns against
other competitive stakeholder claims. That said, the firms
are not only financially viable but also seemingly to be able to
champion and actualize more stakeholder-centered social causes.
(f ) The organization possesses required organizational resource capabil-
ities and conditions to fulfill its economic self-interests and societal
expectations. Financial viability does not exist in vain. Financial
statements reflect the quality of the firms’ decision-makings and
management control. That said, the equally important organi-
zational resource capabilities, other than the financial resources,
34
L. Teck Hui
under which the firms bring the excess rents into existence
merit attention. Technology, human resources, and manufac-
turing assets, to name a few, have an immediate and collective
bearing in shaping the firms’ economic and social performances.
Successful corporate social strategy tends to be the one where
value sharing among the firm’s resource capabilities is high.
(g) The CSR initiatives capture the essences of a good strategy. A stra-
tegic asset shall not be too causally ambiguous until it impedes
organizational internal knowledge and practice transfer
(Szulanski 1996), and creates managerial opportunisms for man-
agers to make personal gains (Delgado-Ceballos et al. 2012).
Somehow, a good CSR initiative mixes with other organizational
resource capabilities to create a synergistic strategic asset, capa-
ble of neutralizing external competitive forces. The strategic asset
appears to possess one or more features as described under the
resource-based view theory, namely strategic factor, path depend-
ence, causal ambiguity, and social complexity.
(h) It creates pervasive shared value, with longer term of impacts,
among its stakeholders. Shared value focuses on the connec-
tion between societal and economic progress. Creating shared
value, driven primarily by profit maximization may give rise to
unhealthy relationship with those influential stakeholders less
interested on the profits but more on the social and environ-
mental benefits. A transformative CSR requires a firm to com-
pete and co-operate suitably in a particular competitive context,
while having the leverage to create shared value with a broader
range of stakeholders over a longer time horizon. The firm’s via-
ble organizational resource capabilities grant it the flexibility to
not only creates shared economic value with those affected, but
also other social and environmental dimensions. This may bring
sustainable relationships, built on a realistic understanding of
the true mutual strengthens.
(i) The organization has a structured, holistic practicing CSR model
conformed to the universally acceptable morality principles. A
stand-alone analysis or cross-sectional dataset may not present
a complete picture about the state of a firm’s CSR endeavors. A
35
firm that runs a transformative CSR should have a presentable

structured and holistic practicing CSR model. The value of the
model shall conform to universally acceptable morality princi-
ples. Holistic means the CSR elements can be traced in all the
key stages of strategic planning process so as to gauge the con-
sistency of the firm’s actual outputs in relation to its inputs.
(j) It leads and facilitates major internally and externally driven CSR
programs. Apart from embedding CSR elements tightly in the
organizational core routines, the firm also runs some popular
regular and ad hoc CSR programs. It is often called to facilitate
some public CSR programs in collaboration with major organi-
zations from the public and private sectors, which instill deeper
understanding of the mutual dependencies and value creation.
With the emergence of a range of new opportunities to create
highest potential for shared value, the external collaborations
increase further the firm’s corporate esteem and legitimacy.
(k) It has a future point of view on CSR and sustainability develop-
ment. Creating and actualizing a CSR initiative with notable tri-
ple bottom-line impacts simultaneously is not a quick fix project.
As such, the firm usually has a clear viewpoint about its corporate
short to long-run destinations. CSR issues are proactively inte-
grated in the organizational major corporate agendas to materialize
the articulated corporate strategic intent and mission; and
(l) It CSR works and models receive validations and notable recog-
nitions. To proclaim the transformative effect of a CSR initia-
tive, external assurance from reputable international experts to
research, test, validate, replicate, and publish the firm’s practic-
ing CSR model would definitely be a bonus.
In line with the research objective stated in Sect. 1.1.2d, Chap. 1, the

author envisages that the existence of the above combinative proper-
ties would constitute a transformative CSR or strategic CSR 2.0 that
advances the existing understanding on the core characteristics of CSR
initiatives that sustain value creation.
36
L. Teck Hui
Notes
1. In the case of BDA, two master development plans with structured
implementation plans have guided the organization, since its formation,
in drafting and executing all its business and CSR plans (see Sects. 3.2.5
and 3.2.6, Chap. 3 and Sect. 7.2, Chap. 7).
2. Porter and Kramer (2011, p. 66) define shared value as “policies and
operating practices that enhance the competitiveness of a company while
simultaneously advancing the economic and social conditions in the
communities in which it operates.”
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3
Contexts
Abstract  The contextual information of BDA is examined in this

chapter. Malaysia was placed in the world top 20 in the Global
Competitiveness Index 2014–2015 compiled by the WEF. Bintulu,
where BDA is situated, is located in Sarawak, Malaysian Borneo. It
is known as a town of resource-based industry, oil and gas, as well as
renewable energy in Malaysia. Sarawak, on the other hand, is the only
state in Malaysia rated A by the Standard and Poor. The discovery of
large reserves of natural gas offshore in 1968 saw the turning point
for Bintulu from a coastal settlement to a major industrial town in
Malaysia. BDA was formed in 1978 to act as the central governmental
body that can both coordinate and implement development projects on
its own in the Bintulu region.
Keywords  Binutulu · Natural gas · Development · Policy

Government · BDA
This chapter examines the research settings at two levels of contexts,

namely the facts of Bintulu in the broader context of the world and
the background information of BDA. A firm does not exist in isolation
DOI 10.1007/978-3-319-62476-1_3
50
L. Teck Hui
from the dynamic business environments. The two intertwined contexts

provide the contextual understanding on the BDA’s underlying corpo-
rate and social strategy formulation and implementation rationales.
3.1 The Nation, State, and City

Bintulu, located in the Sarawak state of Malaysia, is known as a town
of resource-based industry, oil and gas, as well as renewable energy.
Malaysia is a founding member of the ASEAN, established in 1967
to promote peace, freedom, and prosperity among its member states.
At the end of the Cold War, the bloc is transitioning to a multi-
polar power landscape with continued international outreach initia-
tives (Pushpanathan 2003; Yong 2004). Malaysia has 13 states and
three federal territories. It is separated by the South China Sea in two
regions, Malaysian Borneo and Peninsular Malaysia. Sarawak is one
of the only two states located in Malaysian Borneo. A federal consti-
tutional elective monarchy is the system of government of Malaysia,
modeled closely after the British’s Westminster parliamentary sys-
tem. In governing the country, the federal and the state governments
have different power reserved for each. Local authorities, under the
exclusive jurisdictions of the state government, carry out lower-level
administration. The federal and state governments can create autono-
mous statutory bodies to deal with certain tasks, for example, BDA.
In 2014, there were some 149 local authorities in Malaysia, consist-
ing of 13 city councils, 38 municipal councils, and 98 district councils
(Ministry of Urban Wellbeing, Housing, and Local Government 2014;
Nazaruddin et al. 2010).
Sarawak is the largest state in Malaysia with Kuching as its adminis-
trative capital. It was once under the control of the Brunei Sultanate in
the early nineteenth century before it was surrender to Sir James Brooke,
the first British White Rajah in Sarawak, in 1841. It was granted inde-
pendence by British on July 22, 1963. Later on September 16, 1963,
it joined as one of the constituents that formed Malaysia. Sarawak has
12 administrative divisions with Bintulu as its eighth division. Bintulu
division is made up of Bintulu and Tatau districts as well as Sebauh sub-
district (Bintulu Development Authority [BDA] 1989, 2008). Among
3 Contexts
51
all the divisions, Kuching, Sibu, Miri, and Bintulu are considered more
developed than other divisions.
In the 2010 census, Sarawak had population of about 2.47 million,
made up of 76% Malaysian native and 24% Chinese ethnic. Coined as
one of the richest states in Malaysia, it has an abundance of resources
such as liquefied natural gas, petroleum, tropical hardwood timber, and
palm oil plantations. On February 11, 2008, the Sarawak state govern-
ment introduced the Sarawak Corridor of Renewable Energy (SCORE)
project, aiming to transform Sarawak into a developed state by year
2020. The five major growth nodes under the project are Tanjung
Manis, Samalaju, Mukah, Baram, and Tunoh.1 BDA coordinates the
development of Samalaju Industrial Park, under the Samalaju node.
Bintulu has played a significant role in the democracy history and
the economic development of Sarawak. It was the location where the
Sarawak’s first State Council meeting was held from September 8–9,
1867, attended by five British officers and 16 local chiefs of various
races. The meeting marked the beginning of a new era in the conduct
of affairs of the state (BDA 1989, 2008). The discovery of large reserves
of natural gas offshore in 1968 saw the turning point for Bintulu from a
coastal settlement to an industrial town. Strategically located along the
route between the Far East and Europe, it is accessible by air, road, and
sea. There are numerous reasons for Bintulu being known as a town of
resource-based industry, oil and gas, as well as renewable energy. It is the
home to the following some of the largest establishments in the world
or Asia: (a) three liquefied natural gas plants of Petronas, the world’s
largest liquefied natural gas production facility on a single site; (b) an
ASEAN joint-venture urea-ammonia plant, among the largest granular
urea plants in Asia; (c) Shell Middle Distillate Synthesis plant, the first
of its kind in the world, which converts natural gas into high quality
synthetic fuel, waxes, and specialty chemical products; and (d) Bakun
hydroelectric dam, the largest infrastructure project in the country, cost-
ing RM9 billion, with ultimate installed capacity of 2400 megawatt.
It started commercialization in 2011 by providing renewable electri-
cal power to run investment projects, worth multibillion, located at
Samalaju Industrial Park. Murum, another mega hydroelectric dam,
with installed capacity of 900 megawatt is ready for commercialization
in 2014 (Bernama 2011; The Borneo Post 2014).
52
L. Teck Hui
3.2 The Development Authority cum City

Council
Following the discovery of huge reserves of natural gas and oil offshore
Bintulu in 1968, the Sarawak government realized the industrial poten-
tials in Bintulu, and that the development of these reserves warranted a
central body that can both coordinate and implement the development
projects on its own. As a result, BDA was formed on July 8, 1978 as
a corporatized government agency under the BDA Ordinance 1978 to
undertake these roles in Bintulu. As a regional governmental develop-
ment agency, BDA has autonomous power to conduct its affairs in the
designated area, the Bintulu region. Besides, it also assumed the local
authority role or municipal services provider on April 1, 1980 (The
BDA Ordinance 1978; BDA 1989, 2008). Together, the role of govern-
mental development agency and municipal services provider constitute
the core businesses or statutory obligations of BDA. Figures 3.1 and 3.2
are the headquarters office and municipal services center of BDA. They
enhance the integrated function of BDA as a regional development and
municipal services agency. The buildings become one-stop centers for
the industrialists, the public, and the NGOs to access to the services of
BDA as well as other governmental departments. As of December 31,
2013, BDA has staff strength of about 800–1000 personnel.
3.2.1 Legitimate Existence
The BDA Ordinance 1978 governs the legitimate formation and opera-
tion of BDA. Legitimate existence is one of the features of a trans-
formative CSR as indicated in Sect. 2.7.3(a), Chap. 2. BDA has been
operating in accordance with the applicable laws and legislations in
Malaysia in discharging its defined obligations in the Bintulu region.
The legitimate existence is the basic that enables the public to make var-
ious rational decisions in reliance on the representations made by BDA.
Section II of the BDA Ordinance 1978 inter alia spells out the powers
and functions of BDA which include:
3 Contexts
53
Fig. 3.1 Bintulu Development Authority’s headquarters in Bintulu
Fig. 3.2 Bintulu Development Authority’s municipal services center

54
L. Teck Hui
(a) To stimulate and coordinate development activities;

(b) To plan and administer the use of land and natural resources;
(c) To promote and coordinate further the development of industrial
estates and commercial premises;
(d) To promote and development public infrastructures and housing
projects;
(e) To promote and undertake social, sporting and recreational projects;
(f ) To perform local authority or city council functions; and
(g) To establish business corporations.
Functions (a) to (d) are concerning the development agency role

of BDA, while function (f ) describes its role as a local authority.
Functions (e) and (g) depict the intertwining aspects of the two roles.
On the function (g), BDA can incorporate business corporations, usu-
ally in partnership with the private sector, to discharge its statutory
obligations.
3.2.2 Institutional Foundation
Institutional environments “are characterized by the elaboration of rules

and requirements to which individual organizations must conform in
order to receive legitimacy and support” (Scott 1995, p. 132). By con-
forming to the institutional requirements, individual firms receive legiti-
macy and gain supports from their stakeholders (see also Sect. 2.7.3(b),
Chap. 2 on the healthy institutional environments as a feature for a
transformative CSR). The BDA Ordinance 1978 governs the legiti-
mate existence of BDA. Besides, there are also several other legislations
enforceable by the Ordinance, for instances, Road Transport Act 1987,
Food Act 1983, Local Authorities Ordinance 1996, Protection of Public
Health Ordinance 1999, Buildings Ordinance 1994, Entertainment
Ordinance 2000, Natural Resources and Environment Ordinance,
Public Park and Green Ordinance 1993, Statutory Bodies (Financial
and Accounting Procedures) Ordinance 1995, and the Statutory Bodies
(Conduct and Discipline) Ordinance 2004.
3 Contexts
55
3.2.3 Organizational Structure
Appropriate organizational structures and procedures assist a firm in

organizing for economic performance and conforming to social norms
(see also Sect. 2.7.3(b), Chap. 2 on the healthy institutional environ-
ments as a condition for a transformative CSR). Figure 3.3 is the organ-
ization chart of BDA, designed to ensure the accomplishment of the
founding objectives of BDA. At the apex is a Board of Management.
It consists of key officers from major governmental departments such
as finance, land and survey, resource planning, public works, economic
planning unit, development, and state secretary at the state and fed-
eral levels with Chief Minister of Sarawak as its head. The board, who
oversees the performance of BDA, facilities speedy decisions involv-
ing the state and/or the federal governments. Besides, there are various
management committees such as recruitment, land, tender, investment
and finance, disciplinary, architectural and building approval, staff
welfare-related schemes, and licensing comprising key figures, internal
and external to BDA, monitoring the core operations of BDA, to ensure
the organization’s compliance with the existing provisions in laws.
The Board of BDA

Tender Committees
(Investment,
recruitment, tender,
land and audit)
General Manager
Manager Secretary
(Internal Audit) (Public Affair &
Public Relation)
Assistant General Manager Assistant General Manager Deputy General Manager

(Technical Services) (Municipal) (Corporate Services)
Senior
Manager
(Project
Development)
Senior Senior Senior Senior

Senior Senior Senior Senior Senior Senior Senior Senior Senior Senior
Manager Manager Manager Manager
Manager Manager Manager Manager Manager Manager (Corporate Manager Manager Manager Manager
(SCORE) (Engineering (Planning (Legal) (Municipal) (Maintenance Planning (Human (ICT) (Property) (Office) (Finance)
& (Contract)
& & Resources)
Development) &
Workshop) Innovation)
Land Use)
Fig. 3.3 Organization chart of Bintulu Development Authority. Source BDA

Guide Book
56
L. Teck Hui
3.2.4 Business Subsidiary and Associate
Under the BDA Ordinance 1978, BDA can establish a company

to carry out business activities in line with its statutory functions.
The functions of such corporations are further governed by the
Companies Act 1965 with regard to their authority. As of December
31, 2013, BDA has seven subsidiaries (holding 50% or more share-
holding) and 11 associate companies (holding more than 20% but
less than 50% shareholding) with principal business activities rang-
ing from retailing, concrete production, to property development.
BDA appoints its senior officers to sit on the board of the tie-in
companies for better coordination in meeting the goals of develop-
ment projects. The projects that have been successfully undertaken
by the joint-venture companies include BDA-Shahida commercial
complex, Medan Jaya commercial center, Shell Middle Distillates
Synthesis houses, Regency Plaza Hotel, Kidurong housing garden,
Kidurong workers camp, BDA-Forego commerce square, manufac-
turing of precast concrete products, a mini-market, and the setting
up of a batching plant.
3.2.5 The Bintulu Regional Center Study
The Bintulu Regional Center Study (Australian Development Assistance

Bureau [ADAB] 1979) was the first Bintulu development master plan
that formulated economic, social, and physical plans to guide the
orderly growth and integrated development of Bintulu over the period
from 1979 to 1995. Prepared by Pak-Poy & Associates Pty. Ltd., the
consultants from Australia, the study was carried out for the Malaysian
government and the Sarawak state government on behalf of the
Australian government. It consists of volumes, namely on economic and
demographic base, physical plans, engineering services, management,
project packages evaluation, and folio of engineering drawings for devel-
opment plans and project packages.
3 Contexts
57
3.2.6 The Bintulu Urban and Regional Study
In 2003, BDA celebrated its silver jubilee and came out with the second
master development plan, the Bintulu Urban and Regional Study. The
study provides a sustainable planning framework that outlines poten-
tial opportunities and constraints for the development of Bintulu from
2004 to 2020, and the fulfillment of BDA’s vision in making Bintulu
as a “friendly industrial city” by 2020. The blue print would ensure
balanced development in Bintulu town proper and as well as in areas
within its jurisdiction such as Jepak, Tatau, Sebauh, and Samalajau into
a modernized, attractive, and leisure surroundings, and that the social
interaction programs among the people would also be carried out in
line with the master plan. Attracting further investments and creating
more business opportunities and employments to the people in Bintulu
and Sarawak are also part and parcel of the master plan (WAHBA
Engineering Consultants and GHD Consultants 2006a).
The study compiled all the findings and recommendations into the
following three volumes:
(a) The Bintulu regional strategic development plan. It provides a

broad planning framework for Bintulu and guides the prepa-
ration of other plans for Bintulu urban area, Samalaju, Tatau,
Sebauh, and Jepak. The volume also indicates the main trends,
directions, and scale of development within the study area;
(b) Structure plans/local plans. The plans aim to address amongst
others issues on additional land requirements for land use,
improvement over the interregional and international accessibil-
ity of Bintulu and the intraregional linkages, establishment of
adequate and accessible physical, social infrastructure, and ser-
vices for the Bintulu region, development of environmental sus-
tainability in the Bintulu urban area and surrounding areas, and
transforming the Bintulu urban area into a friendly industrial
city up to the year 2020 and beyond; and
(c) Action plans. This volume provides an implementation schedule
from the findings and recommendations presented in the pre-
ceding two volumes.
58
L. Teck Hui
3.2.7 Continuous Improvement Initiatives
Vigilant to the needs of its stakeholders and persistently finding ways to

meet the said needs enable organizations to create and deliver sustain-
able process of value creation. In achieving its corporate mission, BDA
has been undertaking numerous continuous improvement initiatives, as
below, other than the two master development plans:
3.2.7.1 Tanjung Batu Coastal Reserve Master Plan Study
Tanjung Batu Coastal Reserve, an area covering over 170 hectares, with
sizeable piece of public recreational land having extensive shoreline, con-
stitutes an environmental heritage that warrants careful attention to its
ecological, recreational, and aesthetic values. In 1985, major local and
international architecture firms jointly produced a detailed layout design
of the Tanjung Batu Coastal Reserve.2 With sound project financial
considerations, the proposed facilities under the plan, with completed
constructions, include the BDA new headquarters building, a zoo and
botanical garden, sport complexes (Bintulu indoor and outdoor stadi-
ums), a 18-hole international standard golf course, international stand-
ard hotels and apartments,3 tourist chalets, hawker stalls, residential
estates, and commercial centers that would present an exciting opportu-
nity for Bintulu to become a more livable, friendly industrial city.
3.2.7.2 Deloitte Study
BDA felt that a new business information system must be adopted to

integrate critical processes in project development, contract manage-
ment, procurement, municipal collections, and accounting process-
ing so as to increase the effectiveness in servicing its stakeholders. As a
result, Deloitte Consulting and Microsoft GP were appointed to carry
out a business improvement project started in November 2011 and
completed in January 2014 when the new business information system
was finally went live (BDA 2014).
3 Contexts
59
3.2.7.3 Railway Study
In 2010, BDA appointed consultants to carry out an initial study of a

proposed railway network that links the SCORE project’s two major
growth nodes, Samalaju Industrial Park in Bintulu and Tanjung Manis
in Mukah. The study, completed in 2011, amongst others recommended
the broadening of the proposed railway network’s linkages to other major
divisions in Sarawak, which would improve considerably the connectivity
among major economy-related establishments in Sarawak while achiev-
ing significant cost efficiency (Kunding 2011; The Borneo Post 2011).
3.2.7.4 Operational Efficiency
In line with the Sarawak state government’s aspiration in provid-

ing innovative civil services (Sarawak Chief Minister’s Department
[SCMD] 2014; Yeo 2013), BDA incorporates inter alia the 5S program
(a methodology on effective workplace organization), TQM principles,
and ISO 9001: 2000 Quality Management Systems into its organiza-
tional-wide daily work routines to improve its operational efficiency.
Later in 1997, it was certified to ISO 9001. The areas received certifi-
cation including provision of development and local authority services
covering the aspects of project development, development control, rates
collection, licensing, maintenance services, library management, and
zoo and botanical gardens management.4
3.2.8 Corporate Vision and Mission
Before year 2000, BDA just wanted to be a responsible governmental

development agency and a local authority that carry out effectively the
roles as required by the BDA Ordinance 1978. In the late 1990s, BDA
set the vision in making itself: “To be a dynamic and excellent corporate
organization in providing development and municipal services,” and with
the mission as: “Together with the people of Bintulu, we want to develop
Bintulu into a well-planned and harmonious city through the provision of
quality development, social, economic, and municipal services.” The inter-
nal factor that prompted BDA to set the vision was that it needed to
60
L. Teck Hui
perform in a way that can contribute to its stakeholders in a natural

way. On the organizational external aspect, the Malaysian government
has been embarking on civil service transforming programs to make the
service world class. The officers of BDA have to perform to the expecta-
tion of their stakeholders. In early 2003, the Board of BDA refined the
vision and the mission statements of BDA as below:5
Vision – “Bintulu…a friendly industrial city by the year 2020”

Mission – “Being a development agency and a city council, BDA
is committed to manage the advancement of Bintulu, in
partnership with its people, into a friendly and sustain-
able city through the provision of quality physical, social,
and economic development services.”
The word “industrial” means an industrial development is and will

be the primary driver for Bintulu, and “friendly” can be applied to a
range of social, economic, and environmental factors including a har-
monious, diverse, safe, and prosperous population; minimized impacts
of pollution; good quality of physical infrastructure; good quality of
community infrastructure and services; consideration of climate fac-
tors into urban design and visual amenity; and good quality housing
for all socioeconomic groups (WAHBA Engineering Consultants and
GHD Consultants 2006b, pp. 20/2–20/4). “In partnership with its peo-
ple” implies the action of attaining the vision and discharging the stat-
utory obligations by BDA via active engagement with its stakeholders
working toward the aspiration of the organization as well as the general
public especially those in Bintulu. In a “sustainable” and “friendly” man-
ner, BDA provides “quality physical, social and economic development ser-
vices” in the process of attaining the vision. The services collectively can
take the following forms: Bintulu in the year 2020 is a big home for all
people and all industries living and operating in harmony; sustainable
natural resources management and usage optimization; sustainable and
balanced development with continuous improvement of the quality of
life for both and urban communities; creation of a caring, progressive,
knowledgeable, and secure society; provision of quality public infra-
structure and information communication technology to all stakehold-
ers by the year 2020; and concerted efforts toward sustainable use of
3 Contexts
61
natural conservation and enhancement of the environment for friendly

Bintulu (WAHBA Engineering Consultants and GHD Consultants
2006c, pp. 19/14–19/15).
Notes
1. Visit the websites of Sarawak government (http://www.sarawak.gov.my/)
and the State Planning Unit (http://www.spu.sarawak.gov.my/down-
load/Sarawak%20Facts%20&%20Figures%202015.pdf ) for informa-
tion about Sarawak, and the Regional Corridor Development Authority
(http://www.recoda.com.my) for further details on the SCORE.
2. For details, see BDA annual reports 1982, 1985, and 1986 as well as
Hijjas Kasturi Associates Sdn Bhd and Arthur Erickson Associates
(1985).
3. See also Sect. 7.3.2, Chap. 7 on stakeholder management issues.
4. The confirmed sources from the Berita BINDA (BDA Newsletter), the
BDA annual reports, and the innovation management services unit of
BDA.
5. The timeline confirmed by the author’s CSR interview sources on BDA.
References
Australian Development Assistance Bureau. (1979). Bintulu regional cen-
tre study (vol. i–iv). Prepared by P.G. Pak-Poy & Associates Pty. Ltd and
Associate Consultants on behalf of the Government of Australia.
Bernama. (2011, November 21). SCORE attracts RM28 billion of invest-
ments. Retrieved from http://www.mole.my/content/score-attracts-rm28-
billion-investments.
The Bintulu Development Authority Ordinance. (1978).
Bintulu Development Authority. (1989). An era begins. Sarawak: Bintulu
Development Authority Publishing Unit.
Bintulu Development Authority. (2008). Bintulu: Towards a friendly industrial
city. Sarawak: Bintulu Development Authority Publishing Unit.
Bintulu Development Authority. (2014, January 6). BDA business system
(BBS) go-live. Retrieved from http://www.bda.gov.my/announcement_
detail.php?id=22.
62
L. Teck Hui
The Borneo Post. (2011, November 26). Company appointed to provide

consultancy services for railway network. Retrieved from http://www.the-
borneopost.com/2013/11/26/company-appointed-to-provide-consultancy-
services-for-railway-network/.
The Borneo Post. (2014, December 6). First turbine unit ready for Murum
Dam. Retrieved from http://www.theborneopost.com/2014/12/06/first-tur-
bine-unit-ready-for-murum-dam/.
Hijjas Kasturi Associates Sdn Bhd and Arthur Erickson Associates. (1985).
Tanjung Batu coastal reserve master plan study: Adopted layout report.
Kunding, G. (2011, April 11). Govt mulls Tg Manis-Samalaju rail link. The
Borneo Post. Retrieved from http://www.theborneopost.com/2011/04/11/
govt-mulls-tg-manis-samalaju-rail-link/.
Ministry of Urban Wellbeing, Housing, and Local Government. (2014).
Statistics of local authorities. Retrieved from http://www.epbt.gov.my/osc/
stat_PBT1.cfm.
Nazaruddin, M. J., Redzuan, M., Samah, A. A., & Ismail, M. R. (2010).
Malaysian studies: Nationhood and citizenship. Petaling Jaya: Prentice Hall.
Pushpanathan, S. (2003, August 9). Appreciating, understanding the ASEAN
concept. The Jakarta Post.
Sarawak Chief Minister’s Department. (2014, March 28). Transformation pro-
gram. Retrieved from http://www.jkm.sarawak.gov.my/modules/web/page.
php?id=119&menu_id=0&sub_id=7.
Scott, R. (1995). Institutions and organizations. Thousand Oaks: Sage.
WAHBA Engineering Consultants and GHD Consultants. (2006a). Bintulu
urban and regional study: Final report. Vol. 1, Part 6, Land use and transpor-
tation, 10–37.
WAHBA Engineering Consultants and GHD Consultants. (2006b). Bintulu
urban and regional study: Final report. Vol. 1, Part 6, Natural resources,
20/2-20/4.
WAHBA Engineering Consultants and GHD Consultants. (2006c). Bintulu
urban and regional study: Final report. Vol. 1, Part 7, Regional strategies,
19/14-19/15.
Yeo, C. (2013, October 29). Sarawak civil service keeps changing for efficiency,
says State Secretary. The Star. Retrieved from http://www.thestar.com.my/
News/Community/2013/10/29/Evolutions-for-better-delivery-Sarawak-
civil-service-keeps-changing-for-efficiency-says-State-Secret/.
Yong, O. K. (2004, June 30). Region grouping pursues international under-
standing. The Bangkok Post.
4
Integrating Corporate Social
Responsibility into Strategic Intent
and Mission
Abstract  This chapter examines the strategic intent and mission of

BDA in engaging CSR. The corresponding structured and action plans
that attempt to translate them into reality are also highlighted. The
vision and mission statements suggest that BDA has a future point of
view on CSR. Two master development plans, prepared by the estab-
lished international consultants, have guided the orderly and integrated
socioeconomic developments of the Bintulu region since 1979. Also,
BDA is endowed with the authority of collecting land premium from
the sales of governmental state lands. The ability to generate its own
income increases the organization’s strategic flexibility to embed deeper
and broader CSR elements in all its corporate agendas for the better-
ments of its stakeholders.
Keywords  Strategy · CSR · Consulting · Stakeholders · Organization
A firm’s vision and mission statements inform its unique purpose and
scope of operations. This chapter investigates the strategic intent and
strategic mission of BDA in translating its visionary CSR initiatives
into concrete business and operational plan (see the research objective
DOI 10.1007/978-3-319-62476-1_4
64
L. Teck Hui
in Sect. 1.1.2(a), Chap. 1). Section 4.1 reviews in brief the histori-

cal aspects of the phenomenon especially in the early years of BDA’s
operations. The Board of BDA approved the vision and mission of
BDA with embedded social and sustainability elements in early 2003,
aiming to make Bintulu a livable and friendly industrial city (see
Sect. 3.2.8, Chap. 3). The vision and mission statements suggest BDA
has a future point of view on CSR and sustainability development (see
Sect. 2.7.3(k), Chap. 2 on a criterion of a transformative CSR). With
the advent of social media era and the prevalence of structured man-
agement literature, Sect. 4.2 highlights the more explicit dimensions of
organizing and strategizing corporate mission and intent into reality by
BDA in the new millennium.
4.1 A Historical Outline

BDA incorporated the social and environmental planning considera-
tions in its year one policy-makings, reflected in some of the following
salient remarks, extracted from the Bintulu Regional Center Study (see
Sect. 3.2.5, Chap. 3):
In addressing the land suitability, account is taken of acquisition costs of

land for public services as well as government residential, commercial and
industrial development […]. Wind direction, velocity and duration are
of particular importance to the locational relationships between pollutant
industries and residential areas […]. Major concern will be the effects of
emissions and effluent discharge from industries. Careful consideration is
given to the types of effluent to be permitted and likely to be discharged
and recommendations are made for waste disposal taking into consid-
eration such factors as natural drainage systems, coastal longshore drift
and marine and terrestrial flora and fauna […]. From the consultants’
population projections, it is possible to estimate future needs for social
capital: housing, school places, municipal services, recreational and reli-
gion facilities, commercial facilities, transport facilities and utilities […].
Social alienation and disillusionment can affect the young especially, and
the planning of open spaces, recreation facilities and schools must take
4 Integrating Corporate Social Responsibility …
65
account of this danger. Overcrowding is to be avoided, as far as possi-

ble within housing cost constraints, but not to the extent that typical
distances between home and work, school and shops exceed reasonable
walking or cycling range […].
Under the BDA Ordinance 1978, BDA has the authority of col-
lecting land premium from the sales of governmental state lands, an
authority not enjoyed by other local authorities. The ability to generate
its own income increases the organization’s strategic flexibility to organ-
ize and strategize its functions and development agendas, including the
power to create and budget for CSR programs.
On CSR programs, we have been doing these from year one, and now are
about 35 years. We make donations and draw plans for communal build-
ings, community halls, places for worship, roads, drains, including land-
scaping, schools, and other commercial buildings.1
In the early years (especially 1978–1997) of its establishment, there

were not many external requests for BDA to engage in the commu-
nity developments. During that period of time, BDA was preoccupied
with developing public infrastructure and social amenities so as to bring
Bintulu, in a coastal settlement form, into a state ready to receive the
first wave of mega petrochemical investments and influx of people.2 In
term of development, the structured development plans contained in
the Bintulu Regional Center Study categorized land use into residen-
tial, commercial, industrial, green, and other usage. If ones compare the
shape of the structured plans with the satellite picture of Bintulu from
Tanjung Kidurong area to Kemena, the areas almost match with each
other. In that respect, what had been planned before in the early 1970s
had actually been translated into the first 20 years of real developments
in Bintulu (see Fig. 4.1).3 The population of Bintulu has grown from
5000 to more than 200,000. The town landscape and infrastructural
networks of Bintulu have been improved as a result of ongoing industri-
alizations.
66
L. Teck Hui
Fig. 4.1 Bintulu development plan completed. Source Bintulu investment guide,

p. 92 (BDA 2000)
We are quite different from the local authorities like Sibu municipal coun-
cil, Miri city council, and the North and South Kuching city councils
because we are the development agency, playing the role like the Sarawak
Economic Development Corporation. We play the roles of developing
67
industrial estate and infrastructure development in a big way. In term of

development, the consultants from Australia, Pak-Poy had given us struc-
ture plans for Bintulu whereby land use had been categorized into vari-
ous categories like residential, commercial, industrial, green, and other
usage. If you look at the shape of the structure plans, and you compare
it with the satellite picture of Bintulu from the Tanjung Kidurong to the
Kemena, you can see that it [the satellite picture] almost matches to the
plan. So in that aspect, what had been planned before the fast develop-
ment in Bintulu in the early 1970s had actually translated in the first
20 years of real developments […]. So, we have accommodated not only
people, but also the industry, whether it is heavy or light, to perform and
make money in Bintulu, and also people to live a good life in Bintulu.4
4.2 Takeoff Trajectory

Many social evils are associated with rapid urbanization and rural–
urban migration. The advent of information and communication tech-
nology revolutionizes the ways that the societies use to interact with
each other. This leads to the demand for more transparent and effective
public management process such as the BDA’s responsiveness to address
pressing problems in communities, ability to attract investments and
to create job opportunities, and intent to create livable living environ-
ments.5 As such, realigning corporate mission and intent with the evo-
lutionary stakeholder demands will be a strategic neccesity for BDA in
the new millennia.
BDA came out in 2003 with the second master plan study (the
Bintulu Urban and Regional Study) to direct the development in
Bintulu to 2020. Its board refined the vision and mission statements
of the organization in the same year (see Sect. 3.2.8, Chap. 2). Besides
charting the future development plans and reengineering the local
authority functions, there has been a lot of planning on the energy-
saving industrial park, Samalaju Industrial Park, which has 8000 hec-
tares of land, the biggest in Malaysia to harness the renewal energy from
the Bakun and Murum hydroelectric dams. So, besides making Bintulu
better, BDA is also playing a lead role in promoting the economic and
social activities at Samalaju Industrial Park.
68
L. Teck Hui
As a corporatized public entity with the ISO 9001: 2000 certifica-

tion, BDA has its own key performance indexes prescribed by the state
and federal governments to meet. BDA has also implemented the 5S
program at its workplace (see Sect. 3.2.7, Chap. 3).
As an officer of BDA, our role is to channel feedbacks from the public to

the management of BDA. And, what is justifiable and realistic, we will
implement to the satisfaction of the Bintulu people […]. Nowadays, we
have to practice what we call ‘no-wrong door’ policy, whereby the public
look on government, instead of BDA, Residence Office, Public Work
Department and so on, as one government […] to adopt for ‘no-wrong
door’ policy whereby if feedbacks from the public, even they are not of our
concerns, we need to listen, record them down, and pass them on to the
relevant people and departments for action. So, this is our official role that
we are playing. Besides getting requests, we also implement what is budg-
eted on the CSR in an efficient way and to the satisfaction of public.6
As the authority equipped with vast resource capabilities, it is quite

natural for general public and politicians to expect BDA to do a lot of
things.
We need targets set, not only for BDA and its staffs, but also for the peo-
ple of Bintulu. The idea is to bring everybody together as a team to play
their role whether as a government, an individual, or a private sector to
achieve that vision. So in everything we do […] we also have to take care
of environment, making sure that the Environmental Impact Assessment
is done, the minimum standards of the Environmental Acts are met […]
to make sure that we achieve the friendly industrial city by 2020.7
The initial 20-year (1979–1998) master plan for Bintulu had already
been completed.8 Bintulu had enjoyed the growth rate of 6% in terms
of population, among the highest in Malaysia. The resource-based
industries had also performed better than the original projections,
with more than 50% of timber exported from Sarawak being extracted
in Bintulu. Bintulu had half a million hectares of oil palm estate.9
BDA spent approximately RM400 million on developing infrastruc-
tures, public amenities, industrial estates, low-cost housing schemes,
69
commercial buildings, etc., during the period 1979–1988. From 1989

to 1998, the foreign direct investments (FDIs) and domestic invest-
ments such as Petronas liquefied natural gas plants and Shell plants
took up the spaces in the industrial estates. BDA had also implemented
resettlement schemes and low-cost housing series to assist less fortunate
(BDA 1989, 2008).
Some BDA’s managers in the course of the author’s interviews argued
that everything that BDA has been doing is CSR. The top management
of BDA also reiterated that the roles of development agency and city
council are the core businesses of BDA. BDA is financially healthy. It
can finance a lot of projects. CSR inevitably is a joint product of the
core businesses of BDA as the organization got no choice but has to
perform to the expectation of its stakeholders.10
Industrial developments always bring environmental concerns. The
Board of BDA embedded more social and environmental perspectives
in crafting the new vision and mission statements of BDA. “Friendly
industrial city” means a well-developed industrial center that takes
good care of environmental and social issues. The strategic thrust of the
BDA’s vision is that:
We don’t want the industries to pollute the environment. We have the

Natural Resources and Environment Board of Sarawak and Department
of Environment of Putra Jaya, under the Ministry of Natural Resources
and Environment, around to monitor the pollution level acceptable and
within control. But besides taking care of air and water, we got to make
Bintulu beautiful and good to the eyes. BDA has assisted the two agencies
looking after the environmental matters. We already have few big parks,
reserved green areas at the Tanjung Batu Coastal Reserve where the BDA
office and the golf course are located. We have about 500 acres green area
at the heart of the downtown that you can hardly even see 100 acres else-
where at the central of their downtowns.11
A friendly industrial city status cannot be achieved without the corre-

sponding commitment on sustainability developments. The vision gives
the stakeholders of BDA a sense of direction on the long-term develop-
ment platforms that BDA wants to build. It also presents BDA’s unique
viewpoint about its future; BDA has to observe the world standards by
70
L. Teck Hui
complying with minimum environmental friendliness requirements in

its quest to develop Bintulu to become an industrial city that will inevi-
tability face numerous environmental and sustainability issues. The
vision sets the environmental control parameters of BDA to ensure that
the pollutant industries are not at the backyard of the people. As stated
in the mission statement of BDA (“in partnership with its people” ), BDA
empowers its stakeholders to gear themselves to the vision, also reflected
in the slogan of BDA—“Together We Make Bintulu a Better Place.”
Together, BDA and its stakeholders work hand in hand to make Bintulu
better, a mission that gives everyone a sense of destiny worth of pursu-
ing. This sets the tone for broader efforts in BDA’s strategic actions and
CSR plans to integrate and address the needs of its stakeholders.
The strategic intent of BDA to materialize its articulated vision and
mission statements is evidenced further in the formalization of its sec-
ond master development plan for Bintulu in 2003, the Bintulu Urban
and Regional Study that outlines more expanded potential develop-
ment opportunities, constraints, and recommendations for BDA up to
the year 2020 (see Sect. 3.2.6, Chap. 3). BDA had from 2001 to 2005
successfully completed development projects worth RM240 million. It
has intensified the development of higher order industrial and housing
estates, public infrastructures, and social amenities. Bintulu witnessed
inter alia the completion of a RM385 million new international airport,
capable of accommodating Boeing 747, and the third Petronas lique-
fied natural gas plant. The construction of the Bakun hydroelectric dam
fuelled growth across different sectors of industries in Bintulu and else-
where.12 Malaysia attracted the highest ever-recorded FDIs in 2011.
Among the states, Sarawak attracted the highest FDIs with RM8.17
billion. More than 90% of the FDIs in Sarawak went to Bintulu as a
result of the initiation of the SCORE project (Damodaran 2012;
Hillson 2012).
Bintulu, by virtue of its industries, port, rapid industrialization and
economic growth, and strategic geographical location, has tremendous
potential to become the gateway to Sarawak. In pursuing its vision
through the implementation of the Bintulu Urban and Regional Study’s
proposals, BDA will also need to develop Bintulu to become a friendly
industrial city, along the concept of “healthy city” where the environment
71
shall be clean with attractive townscape and adequate amenities to sus-

tain healthy living for its residents, visitors, and investors. Amongst
others, the RM2 billion Central Business District plan (see Sect. 7.9,
Chap. 7) proposed under the study is being implemented to achieve the
goal. It will be the business, financial, and administrative hub of urban-
ized modern downtown of Bintulu. The plan takes into account major
socioeconomic and environmental issues to be addressed. Open spaces,
green parks, flora gardens, commerce square, city hall, and convention
center will be built to compliment downtown image of Bintulu as a liv-
able garden city in line with the BDA’s vision statement.13
Notes
1. The author’s CSR interview sources on BDA.
2. Ibid.
3. Some major projects completed, as per Fig. 4.1, in the first 20 years
inter alia included: (a) industrial—Liquefied natural gas plants, Shell
Bintulu plants, urea ammonia plant, Shell Middle Distillate Synthesis
plant, palm oil refinery, Kidurong, Jepak, Nyigu, Kemen, and Bintulu
light industrial estates, etc.; (b) public utilities—civic center, Bintulu
sport complex, religion establishments, etc.; (c) institutional—Bintulu
deepwater port, army camp, police headquarters, fire station, post
office, regional hospital, sewage treatment works, primary and second-
ary schools, a university, water treatment plants, etc.; and (d) residen-
tial area—government quarters, district center, golf course, mini zoo,
buffer, recreational area, etc.
5. Ibid.
6. Ibid.
7. Ibid.
8. See the Bintulu Regional Center Study, Vol. III ‘Physical plans’ and Vol. IV
‘Engineering services’.
9. See the Bintulu Regional Center Study, Vol. I, Part 3, ‘Final report: land
use and transport’, pp. 10–37 (WAHBA Engineering Consultants and
GHD Consultants 2006).
11. Ibid.
72
L. Teck Hui
12. See BDA annual reports 1979–2011 and Bintulu Development

Authority (2008).
13. See Konsortium Malaysia (2005). The Central Business District plan
is a complementary study that forms part of the Bintulu Urban and
Regional Study and Sect. 7.9, Chap. 7.
References
Bintulu Development Authority. (1989). An era begins. Sarawak: Bintulu
Development Authority Publishing Unit.
Bintulu Development Authority. (2000). Bintulu invest guide (3rd ed.).
Sarawak: Bintulu Development Authority Publishing Unit.
Bintulu Development Authority. (2008). Bintulu: Towards a friendly industrial
city. Sarawak: Bintulu Development Authority Publishing Unit.
Damodaran, R. (2012, February 22). Highest ever FDI for Malaysia. New
Straits Times. Retrieved from http://www.nst.com.my/top-news/highest-ever-
fdi-for-malaysia-1.50269.
Hillson, Z. (2012, September 12). Sarawak attracted highest FDI in 2011. The
swak-attracted-highest-fdi-in-2011/#ixzz2TMhfoLKs.
Konsortium Malaysia. (2005). Bintulu central business district master plan study:
Final report. Vol. 1, 21–50.
WAHBA Engineering Consultants and GHD Consultants. (2006). Bintulu
urban and regional study: Final report. Vol. 1, Part 6, Land use and transpor-
tation, 10–37.
5
Responsibility into Development
Agency Role
Abstract  Whenever a firm organizes and strategizes its organizational

routines, it triggers somehow the elements of the triple bottom line.
This Chapter and Chap. 6 analyze the core businesses of BDA as a gov-
ernmental development agency and municipal services provider, and
the embeddedness of CSR perspectives in the two statutory functions.
This Chapter analyzes the role of BDA as a governmental development
agency, which entails it to embark on residential, industrial, and com-
mercial development activities. Besides, BDA also undertakes busi-
ness ventures in collaboration with private firms through incorporating
companies; an additional authority not enjoyed by other local authori-
ties. The organization’s major contributions, with CSR added on, in
the development of public infrastructures, industrial estates, housing
estates, and commercial centers over the past 35 years are presented.
Keywords  Triple bottom line · CSR embeddedness · Government

Policy
The triple bottom line is a framework with three parts: social equity,
economic, and environmental factors, embedded in the organizational
DOI 10.1007/978-3-319-62476-1_5
74
L. Teck Hui
routines or value chains of a firm. Whenever the firm organizes

and strategizes its organizational routines, it triggers somehow the
element(s) of the triple bottom line. This Chapter and Chap. 6 basi-
cally analyze the core businesses of BDA as a governmental develop-
ment agency and municipal services provider, and the embeddedness
of the triple bottom line considerations in the two statutory functions.
Embeddedness and pervasiveness of CSR elements in the organization’s
mainstream operations again are key features of a transformative CSR
(see Sects. 2.7.3(c) and (d), Chap. 2).
The discovery of massive oil and natural gas reserves located at its off-
shore in 1968 triggered the development of Bintulu. This is also a useful
timeline to start explaining the phases of accelerated developments in
Bintulu. The completed construction of the first to the third Petronas
liquefied natural gas plants, better known as the Malaysian Liquefied
Natural Gas Plant One, Two, and Three, in 1983, 1995, and 2002 had
brought Bintulu into a bustling town. 1983, 1995, and 2002 are, there-
fore, three crucial years used as the reference points to categorize the
stages of BDA’s contributions, through its statutory roles, into three
major time periods, the first 30 + 5 years as: (a) the first boom period:
1979–1988; (b) the second boom period: 1989–1998; and (d) the third
boom period: 1999–2008, till 2013. The first 30-year of developments
could be driven primarily by the petro-chemical industry. The launch-
ing of the SCORE project on February 11, 2008 blows the sentiments
of business, urbanization, and industrialization potentials in Bintulu
further (Say 2013). Samalaju Industrial Park sets the pace for the fourth
boom in Bintulu starting from 2009, though the analyses are conveni-
ently classified as 30 + 5 at the time of writing.
As a development agency, BDA has been embarking on residential,
industrial, and commercial planning, coordinating, and development
activities. It also undertakes business ventures through incorporat-
ing companies in collaboration with private firms. It chairs the meet-
ings with other public and private sectors on matters pertaining to the
initiation and implementation of development projects in Bintulu, for
instances, the Petronas Liquefied Natural Gas Complex, the Bintulu
deepwater port, the Palm Oil Industrial Cluster, and the low-cost
housing schemes.
75
BDA has the authority to do planning. All governmental agencies need

lands for their projects whether they are clinics, schools, roads, or any
other buildings related to governmental departments. And, all those agen-
cies need BDA’s recommendations. So, we have an important role on not
only BDA’s own projects but also the projects undertaken by other gov-
ernmental agencies […]. We also have authority to create not only the
subsidiaries but also associate companies. They are in property develop-
ment, hotel business, building materials production, and any businesses
that BDA finds appropriate in assisting it to discharge its roles. In fact
one of the early businesses BDA was carrying out FIMA supermarket in
town because Bintulu did not have a port in the early day. The prices of
good were very high. BDA set up a company in partnership with a popu-
lar supermarket in Kuala Lumpur, as the first supermarket in Bintulu. I
do not know if other authorities have supermarkets to help public to alle-
viate the high price of goods.1
The development works done and municipal services rendered by

BDA can either funded by the state government, the federal govern-
ment, or BDA or in a combinative arrangement. In this chapter, the
representative development activities with sizeable monetary value
(RM1 million and above) are presented, as below, in the dimensions
of: (a) public infrastructure; (b) industrial estate; (c) housing estate; and
(d) commercial center and township.
5.1 The First Boom Period: 1979–1988

The years from 1979 to 1982 were in the preparatory phases for Bintulu
to become a new industrial center. BDA laid the major ground works
for the vast planned development activities in Bintulu in accordance
with the proposals contained in the Bintulu Regional Center Study.
Despite the difficult world economic conditions in the early 1980s, the
vast natural resources such as natural gas, oils, and tropical forests along
with the newly developed infrastructures such as the Bintulu deepwa-
ter port, the Tanjung Kidurong road and the Kidurong industrial estate,
as well as the gigantic investments such as the RM3 billion Malaysian
Liquefied Natural Gas Plant One of Petronas and the RM80 million
76
L. Teck Hui
Table 5.1 Contributions as a development agency—the first boom period

(1979–1988)
Development Project Description
(a) Public infra- Tanjung Kidurong road
structure This is the first access road, worth RM10 million, completed on
September 10, 1979. It provides linkages between the industrial
estates, the Bintulu deepwater port, and the downtown of
Bintulu
Bintulu deepwater port
The RM558 million project became operational in the early 1983.
It remains as one of the largest ports in Malaysia, which allows
berthing of large ocean-going vessels. The port serves the major
oil and gas industries located at the Tanjung Kidurong area,
Bintulu. As one of the most modern ports in the ASEAN region,
the port has facilities to cater for different vessels and cargo
Kemena River bridge
The completion of the RM12 million bridge in 1982 opened the
first trunk road in Sarawak. It links Bintulu to other major divi-
sions such as Sibu, Miri, and Kuching. The bridge was designed
and constructed by two Australian firms; Pearson Bridge Pty.
Ltd. and McMillan, Britton, and Kell
Tatau River bridge
Completed in 1985, the RM15 million bridge forms the final link
of the aforesaid first trunk road system in Sarawak. A Japanese
firm, Zeni Taka, constructed the bridge under the supervision of
the Public Work Department
Old airport at the Bintulu downtown
Operational in 1979, the airport located at the central downtown
of Bintulu allowed only Fokker 27 aircraft to land on the 4500
feet runway. The terminal building was further upgraded and
expanded between 1980 and 1982. A new international airport,
to be situated 13 mile away from the downtown, was planned
Water supply
The first phase of RM10 million water supply project was com-
pleted in 1980. It extended the water output capacity in Bintulu
from one million gallons per day to two-and-a-half million.
Another RM165 million water treatment plant, completed in
1982, increased the water supply capacity by another seven mil-
lion gallons per day. The combined water supply capacity was
necessary to meet the accelerated industrialization and popula-
tion growth in Bintulu
(continued)
77
Electricity supply
In 1980, the Sarawak Electricity Supply Corporation (SESCO) imple-
mented several electrical power extension projects, namely the
RM1.2 million diesel power station, the RM5.5 million power station
at the Tanjung Kidurong area, and the RM6.5 million transmission
network linking different power stations in Bintulu to meet sharp
rises in electricity demands in the Bintulu region
Telecommunication
Telekom Malaysia installed a temporary 24-channel very high fre-
quency (VHF) radio link in 1979 for meeting the initial demands
by the Malaysian Liquefied Natural Gas Plant One of Petronas and
other projects. In 1980, the telex exchange in Kuching was extended
to meet demand in all sectors in Bintulu
Road construction
At least RM70 million were spent in the first few years since 1979
in the Bintulu region for constructing and upgrading roads that
included the Tanjung Batu link road, the Nyabau road, the Jepak
Village road, and the Bintulu-Sibu road.
Police complex development
The RM4 million police divisional headquarters complex of Bintulu
was completed in 1981 with the aim to make the local community
safer
Bintulu broadcasting station
The RM6.5 million project, comprised a transmitting station and
broadcasting studios, was completed in 1983
(b) Industrial Bintulu light industrial estate
estate3 Completed in 1981 and covering an area of 13.89 hectares, it was the
first light industrial estate in Bintulu. All the lots in the industrial
estate were allocated to the private sector for the construction of
industrial premises
Kidurong light industrial estate (phases I and II)
Covering an area of 91.33 hectares, the construction of the estate
was completed in 1984. It accommodates light industries that sup-
port the major petrochemical firms such as the Malaysian Liquefied
Natural Gas Plant One of Petronas and the ASEAN urea/ammonia
plant located at the Tanjung Kidurong area
Kemena industrial estate (phases I and II)
The estate is the first timber processing zone in Sarawak. The
establishment was in line with the state government’s emphasis to
encourage value-added processing of timber products. The develop-
ment of phase I commenced in February 1987. Both phases, covering
a total area of about 400 hectares, are to promote value-added
processing of timber products as well as to accommodate some
shipyards and slipways
(continued)
78
L. Teck Hui
(c) Housing Staff housing for the Malaysian liquefied natural gas plant
estate Funded by Petronas, the RM110 million staff housing project,
with 520 units of houses for the staff of the Malaysian Liquefied
Natural Gas Plant One of Petronas, was completed in 1983
Staff quarters for BDA
Comprised of 108 units of houses located at the Kidurong town-
ship, the RM8.1 million project was completed in 1982 to accom-
modate especially the pioneer batch of BDA staff who had to
work at the organization’s Bintulu office
Staff housing for the ASEAN urea/ammonia plant
With the project cost amounting to RM120 million, funded by
Petronas, the construction of 491 units of houses, located at the
Kidurong township, was completed in 1987
Workers Village
In 1982, BDA spent about RM1.8 million toward the construc-
tion of 290 units of accommodations for those workers gained
temporary employment with the contractors engaged mainly in
the Bintulu deepwater port and the Malaysian Liquefied Natural
Gas Plant One projects. The social project helped to curb squatter
problems by resettlement of those in need in the workers village
(d) Commercial Kidurong township
center Covering an area of 769 acres, it is one of the earliest townships
planned in accordance with the Bintulu Regional Center Study.
Located in the midway between the Bintulu downtown and the
petrochemical industries at the Tanjung Kidurong area, it is a
self-contained settlement with the provision of basic amenities
like a post office, a police station, a polyclinic, commercial cent-
ers, schools, and recreational facilities. Hosting a population of
25,000, the township was fully developed more or less in 1995
Village commercial center
The commercial center has some 515 units of shop-houses with its
phase I opened in March 1985. As one of the earliest commercial
centers, it brightened up business venture opportunities for the
private sector in the booming local economy
BDA-Shahida commercial center
The commercial center was constructed by a joint-venture subsidi-
ary of BDA on an area about 27 hectares, located at the center
downtown of Bintulu under the town extension initiative. It was
completed more or less in 1986
Sebauh town and Tatau town
The town plans for the two sub-districts were completed in 1982.
They aimed to provide facilities compatible with the future
upgrading of the sub-district to the full district status
Sources The BDA annual reports 1979–1989 and the BDA newsletters 1979–1989
79
Shell Bintulu crude oil terminal, formed the catalysts of socioeconomi-

cal developments during the period. The Malaysian Liquefied Natural
Gas Plant One provided the impetus to the development of supporting
and related industries, for instances, the RM773 million ASEAN urea/
ammonia plant completed in 1984 and other condensate stabilization
plants and gas-related projects between 1982 and 1983 by Shell. 1983
marked the “take-off ” year for Bintulu to attract more industrial and
commercial establishments from domestic and abroad to invest in the
timber, petrochemical, and agro-based industries, with the completion
of new infrastructural projects and public amenities such as industrial
estates, bridges, and roads.2
Between 1984 and 1988, several housing estates, worker quarters,
and townships were also developed to cater for the influx of people and
the growing business activities in the Bintulu region as a result of the
related needs driven by the aforesaid three projects (Plant One, Shell
crude oil terminal, and ASEAN urea/ammonia plant). Table 5.1 below
summarizes the contributions of BDA as a development agency from
1979 to 1988 in the four categorized areas.
5.2 The Second Boom Period: 1989–1998

Despite a worldwide economic slowing down started in the late 1980s,
Bintulu poised for a second boom period in 1989, lasted to the turn
of the century, with the confirmation of the Shell Middle Distillate
Synthesis plant project and the Malaysian Liquefied Natural Gas Plant
Two of Petronas. Also, the rapid growth of timber industries and the
implementation of the RM9 billion Bakun hydroelectric dam by the
Sarawak state government were the mainstays for Bintulu to forge
ahead in 1994 and beyond. More units moved in the petrochemi-
cal and downstream timber processing industrial estates developed to
commence their operations.4 The first boom period of 1978–1988 had
resulted in a highly developed infrastructure in Bintulu. To prepare for
the second boom, BDA needed to ensure that there were enough pub-
lic infrastructures and social amenities to cater for the influx of work-
ers and investments that boosted the population figure from 45,000 in
1989 to about 65,000 by 1995.5
80
L. Teck Hui
Table 5.2 Contributions as a development agency—the second boom period

(1989–1998)
Development Project description
(a) Public Jetty for Shell Middle Distillate Synthesis plant
infrastruc- The RM2 billion Shell plant became operational in 1993. Under
ture some arrangements with the Bintulu Port Authority, Shell
built a specialized jetty for the operations of its plant. BDA
approved the engineering plan
Coastal protection work
Costing about RM10 million, BDA completed the work in the
early 1996 that aimed at arresting further erosion to the
beaches at Tanjung Batu and Tanjung Kidurong
Road construction
Several road construction and upgrading projects, namely the
sub-arterial around the Bintulu Civic Center (RM6.6 million),
the access to Tun Ahmad Zaidi road (RM0.95 million), upgrad-
ing Tanjung Batu road (RM13.5 million), the second dual car-
riageway for Sibiyu road (RM6.9 million), and reconstructing
Jepak Village road (RM3.9 million) were completed during the
second boom period
(b) Industrial Kidurong industrial estate (phases I and II)
estate In 1996, BDA spent some RM20.8 million for the expansion of
the estate for the betterment of local industries
Kemena industrial estate (phases I and II)
The RM9 million phase I was completed in 1989. This paved the
way for the first 20 companies from Taiwan, Singapore, Japan,
and the local to commence integrated timber processing. The
estate and the firm investments brought additional revenues
to BDA. They created positive spin-off effects on the other
related industries operating in the Bintulu region. In 1996,
BDA invested another RM32.3 million for further extension
and infrastructure works of the estate
Jepak industrial estate
Costing about RM32 million and covering an area of about 350
acres, the estate was completed in 1997 for integrated timber
processing as the local timber industry was booming at that
time
(continued)
81
(c) Housing Second workers camp of BDA
estate The construction of the RM4 million workers camp was com-
pleted in 1990. It accommodated workers involving in the
construction of RM2 billion Shell Middle Distillate Synthesis
plant in Bintulu
Sun housing garden
Completed in February 1993 by a subsidiary of BDA in partner-
ship with a private firm, the housing estate has 94 residential
units and two tennis courts
Four-storey walk-up flats for BDA’s staff
BDA provided staff quarters to those employees in need. It
spent RM9.7 million to complete the construction of the flats
in April 1997
BDA’s staff quarters at Tatau district
The RM0.44 million staff quarters were completed on May 30,
1998 for employees working in the district of Tatau
(d) Commercial Medan Jaya commercial center
center A subsidiary of BDA collaborated with a private firm to start
the development of the project in June 1992. Comprised of
110 units of three-storey commercial shop-lots, the center
was completed in July 1995 to cater for the growing vibrant
private business in Bintulu
Sources The BDA annual reports1989–1999 and the BDA newsletters 1989–1999
The unexpected hazy weather condition, declining value of RM

in the late 1996, and the Malaysian government’s intention to review
investment on the mega Bakun hydroelectric dam project posed
serious challenges to the economic growth and physical develop-
ment in Bintulu. The contagious effects of speculative attacks on the
regional currencies had adversely affected the economy of Malaysia in
1997/1998. Nonetheless, BDA continued to develop more low and
medium cost houses to assist those less fortunate to own their houses
at an affordable cost. With the revival of the Bakun hydroelectric dam
project and the development of Malaysian Liquefied Natural Gas
Plant Three of Petronas, Bintulu was positioned to continuous growth
in 1999 and beyond; the third boom.6 Table 5.2 below summarizes
the contributions of BDA as a development agency during the second
boom period.
82
L. Teck Hui
5.3 The Third Boom Period: 1999–2008,

till 2013
At the beginning of third boom, the petrochemical industry remained
as the major investment attraction for foreign investors. The Malaysian
Liquefied Natural Gas Plant Three of Petronas became operational in
2002. As a result, Petronas becomes the world’s largest liquefied natural
gas producer with all its three liquefied natural gas plants (the Malaysian
Liquefied Natural Gas Plants One to Three) located within a single site
in Bintulu. Malaysia recorded a positive GDP growth of 8.5% in 2000
compared to 5.8% in 1999, as a direct result of expansionary fiscal poli-
cies implemented by the Malaysian government to stimulate economic
recovery from the Asian economic crisis 1997/1998. The expansion of
Bintulu deepwater port’s facilities, making it one of the most modern
and efficient port in the ASEAN, and the completion of a new airport
of international standard in 2002 have consolidated Bintulu as the
gateway to Sarawak and the center of industrial growth in the region.
The revival of the Bakun hydroelectric dam project in 2003, through
the Malaysia–China Hydro Joint Venture, also triggered the interest of
international investors to set up an aluminum smelter plant in Bintulu.7
In 2003, the Board of BDA refined the vision and mission of BDA
in attempting to develop Bintulu into a friendly industrial city by
2020. The second master development plan, the Bintulu Urban and
Regional Study, was launched. Meanwhile, more areas in the hinterland
have been developed for oil palm plantations. The palm oil industry
replaces gradually the timber-based industry as the major resource-based
industry in Bintulu. During the period of Eighth Malaysia Plan, i.e.,
from 2001 to 2005, BDA had successfully completed development
projects at the value of RM240 million. Major completed projects
were the industrial estates at Kidurong and Kemena (RM65 million),
low-cost housing projects (RM61 million), and upgrading of infra-
structure (RM114 million). From 2006 to 2012, BDA was engaged
to implement federal government funded projects under the Ninth/
Tenth Malaysia Plans worth RM46 million such as the infrastruc-
tural projects for rural areas in Bintulu, poverty alleviation programs,
83
Table 5.3 Contributions as a development agency—the third boom period

(1999–2008, till 2013)
Development Project description
(a) Public Bintulu international airport
infrastruc- The RM385 million new airport was operational in 2002. It
ture replaced the existing 66 years old airport (see Table 5.1, public
infrastructure ). Capable of accommodating Airbus 330 and
Boeing 747 series, the airport would further the socioeco-
nomic developments in Bintulu
Road construction and upgrading
Improving further the linkages in the Bintulu region, sev-
eral road improvement works were completed during the
period. They were, for instances, the Datuk Bandar Abang
Mustapha road, the Tan Sri Ikhwan road, and the Tun Jugah
road (RM4.84 million in 2006), the North-South road (RM13.14
million in 2008 to ease traffic congestion), and the Tanjung
Batu coastal road (RM6 million in 2010 to ease traffic conges-
tion especially between the housing estates and the industrial
estates)
Kidurong sewerage system extension works (phase II)
The RM 3 million project, funded by the federal government
under the 8th/9th Malaysia Plan, was completed in 2006 to
improve the hygienic level of environment
Permanent treatment plant at Tun Hussein Onn road
The RM10.2 million, funded by the federal government under
the 8th/9th Malaysia Plan, was completed more or less in
2009/2010 to improve the hygienic level of environment
Infrastructure projects under the Eighth/Ninth Malaysia Plans
for rural areas in Bintulu
Aiming to improve the standard living of the less fortunate, the
RM7.8 million project for upgrading infrastructure and roads
in the rural areas of Bintulu was launched from 2002 to 2008.
The last job was duly completed in 2009
Decommissioning and diversion of existing oxidation ponds
Costing about RM8.9 million, the decommissioning works
involved three housing estates. They were completed in 2013.
Meanwhile, BDA also constructed new permanent oxidation
ponds that can accommodate 25,000 people along the North-
South road
(continued)
84
L. Teck Hui
A new centralized sewage system for Bintultu downtown
Completed in 2011, the RM9.5 million federal-funded project
would enhance the downtown’s cleanliness and hygienic level
by installing higher capacity sewage systems
Sebauh ferry ramp
The RM5 million project, completed in 2014, improves the
linkages between the remote areas of Sebauh district and its
downtown
Maskat road
In 2009/2010, BDA awarded a contract worth RM46.9 million, as
part of the SCORE project, to construct the aforesaid road
(b) Industrial Kemena industrial estate (phases I and II)
Estate9 Between 2000 and 2003, BDA spent RM3 million to improve the
existing infrastructure of the estate (phase II). In 2006, two
incinerator plants worth RM1.35 million were installed at the
estate to reduce environmental pollutions resulting from the
timber processing activities
Kidurong industrial estate (phases I and II)
BDA spent about RM60 million, between 2000 and 2005, for the
infrastructural improvement works of the estate which had
received favorable demands from the market on its industrial
lots. In 2013, a new traffic light system, worth RM4.8 million,
was installed adjacent to the estate to ease traffic flow in and
around the area. The installation was completed in 2014
Palm oil industry cluster
In 2008, BDA awarded a contract worth RM27.45 million to carry
out infrastructural works for the cluster. Covering an area of
320 hectares, the cluster is situated at the Kidurong industrial
estate (phase II). Aiming to position Bintulu to become the
palm oil refinery center for Sarawak, it not only encourages
downstream processing of palm oil products but also creates
spin-off effects on other local supporting industries. In 2014,
all 19 industrial lots in the cluster were fully taken up by the
investors
(c) Housing BDA’s staff quarters at Tun Ahmad Zaidi road
Estate10 Completed in 2006, the RM10 million project has 44 units of
houses to cater for the executive level staff of BDA
(continued)
85
(d) Commercial Assyakirin commerce square
center Completed in 2010 with 130 units of three-storey shop-
houses, the commercial center was developed by a subsidi-
ary of BDA in partnership with a private firm. BDA borne
the entire land premium incurred in the project
Forego Jaya commerce square
Launched in 2007 and completed in 2010, the commerce
square has 130 units of three-storey shop-houses and
several other taller units of residential and commercial
buildings. BDA borne RM8.8 million of the land premium
incurred in the project. The local vibrant private business
could have led to the construction of both the Assyakirin
and the Forego Jaya commercial centers, situated next to
each other
Bintulu town square
Spanning 10.9 hectares and with the estimated gross devel-
opment value of RM700 million, the town square inter
alia consists of shop-lots, shop office buildings, commercial
plazas, commercial-cum-service apartments, and hotels.
Launched in 2013, this is a joint-venture project between
a subsidiary of BDA and a public listed company aiming
to create a major urban center that will offer comfort and
convenience for everyone in Bintulu. The SCORE project
and the Petronas Train 9 project would have driven the
development of the town square
Columbia commercial center
Adjacent to a specialist hospital, the project was started in
2014. With estimated gross value of RM56.6 million, it is
a joint project between a subsidiary of BDA and a state-
owned firm as a result of growing demand for treatments
from medical specialists. The center consists of 57 units of
three-storey shop-lots and a hotel which would provide
supporting roles to the specialist hospital
Bintulu Sentral
Launch in 2013, the project is another joint-venture under-
taking between a subsidiary of BDA and a private com-
pany. Amongst others, it consists of shop-lots, apartments,
corporate office buildings, and a shopping mall. The devel-
opment of the project signifies positive prospects of the
retail sector in Bintulu. The land premium of RM9 million
incurred in the development was borne by BDA
Sources The BDA annual reports 1999–2014, the BDA newsletters 1999–2014, the
internal sources of BDA, and the newspaper reports
86
L. Teck Hui
sewerage systems, landscaping works, road construction and upgrading,

the Samalaju new township, the Palm Oil Industrial Cluster, Samalaju
Industrial Park, etc.8 Appendix B shows major development and munic-
ipal expenditures incurred by BDA.
As the regional development agency and local authority, BDA con-
tinues to coordinate the development of Bintulu toward a friendly
industrial city before 2020. In this respect and in line with the Bintulu
Urban and Regional Study, there have been several higher order com-
mercial, residential, shopping malls, and township projects imple-
mented from 2012 that would gear BDA toward actualizing its vision
(see also Sect. 7.9, Chapter 7). Investments, worth multibillion, have
flowed to Samalaju Industrial Park since the official launching of the
SCORE project in 2008. Table 5.3 below summarizes the contributions
of BDA as a development agency from 1999 to 2008, till 2013.
Notes
2. See BDA annual report 1983.
3. In the past 35 years, BDA has developed five major industrial estates,
namely, Bintulu light industrial estate, Kidurong light industrial
estate (phases I and II), Kidurong industrial estate (phases I and II),
Kemena industrial estate (phases I and II), and Jepak industrial estate.
The Kidurong-based estates are mainly for petrochemical-related firms,
while the estates at Kemena and Jepak are for timber downstream pro-
cessing.
4. See BDA annual reports 1991–1994.
9. An internal statistics by BDA indicates that the industrial lots in all
the five industrial estates developed by the organization have been fully
taken up by the investors. It shows a good match between the demand
and the supply. The statistics was enclosed in a separate document for
review by the publisher.
87
10. As the private firms are becoming more established, BDA has had
many of the housing estates and commercial centers to be developed by
the private firms rather than through its subsidiaries.
References
Say, T. L. (2013, May 25). Politics of development pays dividend. The Star. Retrieved
from http://www.thestar.com.my/Business/Business-News/2013/05/25/Politics-
of-development-pays-dividend-Sarawak-counters-soar-after-GE/.
The Bintulu Development Authority’s annual reports.
The Bintulu Development Authority’s newsletters.
6
Responsibility into City Council Role
Abstract  The major contributions of BDA, with CSR added on, over

the past 35 years in performing its municipal services provider role
are presented in this chapter. Municipal functions include provision
of sufficient public amenities and quality municipal services, engag-
ing in community services, conducting valuation on ratable properties,
and charging rates on buildings. Both municipal income and expendi-
ture have been on the rising trends, in line with the economic growth
in Bintulu. In 2012, the revenue and expenditure figures of BDA were
more or less the same as the combined figures of the North City and the
South City of the administrative capital of Sarawak, Kuching.
Keywords  CSR · Development · Economy · Public · Community

Services
There has been influx of people, as foreign and domestic investments

started to flow into Bintulu since the first boom period. Many press-
ing issues associated with accelerated urbanization such as cost of liv-
ing, crimes, environmental cleanliness, township maintenance, and
availability of social amenities needed to be addressed speedily. Against
DOI 10.1007/978-3-319-62476-1_6
90
L. Teck Hui
Item 2009 2010 2011 2012

Income 42,644,848 45,540,853 46,604,709 46,027,190
Expenses 33,785,569 33,130,336 42,672,269 37,307,254
Surplus/(deficit) 8,859,279 12,410,517 3,932,440 8,719,936
Repair and
maintenance 5,858,359 5,775,766 8,705,424 8,426,931
Scavenging
expenses 893,160 893,160 1,367,052 1,020,705
Landscaping
expenses 165,539 2,707,975 3,044,303 3,528,626
50,000,000
45,000,000
40,000,000
35,000,000 Income
30,000,000 Expenses
25,000,000 Surplus/Deficit
20,000,000 Repair and

Maintenance
15,000,000 Scavenging
Expenses
10,000,000 Landscaping
Expenses
5,000,000
-
2009 2010 2011 2012
Fig. 6.1 Trends in municipal income and expenditure 2009–2012
this backdrop, BDA absorbed the municipal services function from

the Bintulu District Council in 1980. As a local authority, the scope
of municipal services, with CSR added on, covers the following areas:
(a) provision of sufficient public amenities, quality municipal and
community services such as public swimming pools, sport complexes,
wildlife and public parks, and children playgrounds in housing estates;
(b) rendering municipal services such as town cleaning, landscaping
works, maintenance of public and recreational facilities, road mainte-
nance, scavenging and sanitation works, as well as enforcement of the
local authority bylaws; and (c) engaging in community services like the
construction and maintenance of civic and community centers, public
libraries, modern markets, hawker centers, traffic gardens, parks, and
gardens. The local authority also conducts valuation on ratable proper-
ties, and charges rates on buildings. Rates collected represent the main
source of municipal income to BDA.
91
Our municipal services are in line with the mission of BDA, i.e., to make
Bintulu to become a friendly industrial city. Friendly means we have to
make the place livable. We have to make sure that people get what they
deserve for the amount of rates and taxes they have paid. So, we try our
best to give our services in a timely and a fair manner […]. Whatever
rates we collect, we channel back to the public through our municipal
services and expenditures. We don’t make profits. We just give back eve-
rything to the public through our services. So in that, we align our mis-
sion very much with the BDA’s vision and mission. One of the goals, if
you read our mission statement, is that we are to provide the quality eco-
nomic, social and municipal services to the public. That is our job.1
In this chapter, the contributions of BDA as a municipal services pro-

vider are categorized into three key areas, namely, municipal services,
municipal amenities, and municipal finance. The following analyses
only present representative contributions in the areas.
6.1 The First Boom Period: 1979–1988

Newly developed areas in Bintulu required the extension of services
from the municipal division. BDA employed merely 138 personnel at
its newly established municipal division in 1982 to handle surged work-
loads, as the Bintulu region continued to enjoy growth during its first
boom period.2 In 1982/1983, more trees and shrubs were planted along
the trunk roads and in the residential areas to beautify the landscape
of Bintulu. The enforcement section was set up in 1982 to deal with
illegal activities, for example, squatters and hawkers, as a result of accel-
erated industrialization whereby the construction of Bintulu deepwater
port and Malaysian Liquefied Natural Gas Plant One of Petronas were
progressing. Extensive revaluation exercises on the buildings in Bintulu
were also conducted by the rating and valuation unit during the year.3
Intensified landscaping and town beautification efforts were further
made throughout 1985 at the different areas of Bintulu, for example,
the Kidurong township, roadsides, parks, and open spaces. The land-
scaping efforts were paralleled by the creation of a town landscape akin
to that of a garden city. In 1986, the landscaping and turfing of the first
92
L. Teck Hui
Table 6.1 Contributions as a city council—the first boom period (1979–1988)

Municipal service Service description
(a) Municipal From 1980 to 1988
services In 1982, BDA employed 138 workers at its newly estab-
lished municipal division. More than 1,750 trees and
shrubs were planted along the trunk roads and in the
residential areas in 1982/1983. To tackle the problems
such as squatters and hawkers as a result of the rapid
industrialization, BDA set up the enforcement section.
A garden competition among house owners and institu-
tions was organized in 1983, as part of the Sarawak’s 20th
Anniversary of Independence, to inculcate public aware-
ness on the aesthetic aspects of landscaping. Intensified
township beautification and landscaping efforts, with
regular financial resources allocated in the areas, were
made throughout the boom period. As the demand of
municipal services increased, the public health and the
rating cum valuation units were duly formed to discharge
the related organizational duties in the areas
(b) Municipal Bintulu District Council public library
amenities In 1982, BDA extended the library physically as well as
increased the total collection of books to encourage the
development of knowledge society in Bintulu
Bintulu Civic Center
The RM6 million center was built in 1988 with a large
multipurpose hall made for better social interactions, The
proximity of the center also consists of a runner track, an
Olympic-size public swimming pool, as well as fields for
soccer, hockey, and rugby
Sport hall of BDA
In 1986, BDA awarded a contract worth RM0.8 million to
build a sport hall with facilities such as courts for badmin-
ton, squash, and tennis at the Kidurong township as part
of the Kidurong township project (see Table 5.1, Sect. 5.1).
The sport hall made way for better sporting facilities in
Bintulu
18-hole golf course and golf club
Costing RM3.2 million, the first nine holes were payable in
October 1987. With its undulating landscape intercepted
by streams, ponds, cliffs, coastal plains, and terraces, the
golf course provides unique and panoramic views. It is
a recreational option for the investors, expatriates, and
general public in Bintulu
(continued)
93
Municipal service Service description
(c) Municipal From 1981 to 1988
finance6 The municipal income increased from about RM1 mil-
lion in 1981 to RM6.5 million in 1988. The steep raises in
the municipal incomes and surpluses in the first 7 years
(1981–1988) were due to the rises in the number of ratable
properties, resulting from the growing industrialization in
Bintulu and upward revision of the chargeable rates. At
the same time, relatively smaller proportions of the munici-
pal income were spent on the maintenance and scavenging
services over the years, indicating that the municipal divi-
sion was somewhat prudent in cash flow management as
BDA had yet to build up its strong financial bases. In 1987
and 1988, the total municipal surplus (1987: RM3.6 million;
1988: RM3.3 million) slightly exceeded the total municipal
expense (1987: RM3.2 million; 1988: RM3.2 million)
nine-hole golf course was a major project. The public health unit also
carried out various measures, for example, collecting suspected samples
for testing at more advanced labs in Kuching to prevent the potential
spread of diseases in public.4 A civic center and a sport hall were built
between 1986 and 1988. As of 31 December, 1988, the number of reg-
istered ratable properties in Bintulu was 11,607 units, an increase of
3,796 units or 52% from 1979 since the inception of BDA.5 Table 6.1
summarizes the contributions of BDA as a city council from 1979 to
1988 in the three categorized areas.
6.2 The Second Boom Period: 1989–1998

The first boom period was struggling for the municipal services division
as BDA had to concentrate more on the development agency role such
as carrying out sites development, roads building, etc. to realize the first
master plan, the Bintulu Regional Center Study.
94
L. Teck Hui
Table 6.2 Contributions as a city council—the second boom period (1989–1998)

Municipal Service description
service
(a) Municipal From 1989 to 1998
services In making Bintulu more livable, several key public amenities
were opened for use (for example, 1990: zoo and botanical
garden; 1992: central market and Olympic-size public swim-
ming pool; 1993: outdoor stadium; 1996: kindoor stadium
and 18-hole golf course; and 1998: Bintulu public library). In
1991, the municipal division assisted BDA in its first reset-
tlement scheme, Assyakirin, to resettle nonhouse owner
families especially from the villages surrounding the Bintulu
downtown with sites at affordable costs. During the boom
period, it had also awarded numerous municipal-based con-
tracts (for example, 1992: RM2 million; 1993: RM3.5 million)
to create entrepreneurship among the local communities,
intensify township beautification efforts, and implement
various public health and environmental improvement
programs in Bintulu. Building of a new municipal center was
started in 1996 to consolidate the existing municipal services
into a one-stop center for the general public
(b) Municipal 18-hole golf course
amenities A joint-venture initiative between BDA and Petronas, the
RM11 million second nine-hole golf course was officially
opened on July 7, 1996. It adds to the existing first nine,
making them an 18-hole golf course
Zoo and botanical garden
Located at the scenic Tanjung Batu Coastal Reserve area, the
RM2.2 million project was opened to the general public
in October 1990. It was declared ‘green area’ under the
Public Parks and Green Ordinance 1993 in 1995. BDA spent
another RM1–2 million between 1995 and 1996 to add addi-
tional attractions to the amenities, for instances, upgrading
facilities and adding the collection of animals, flora, and
fauna. Some private and international firms, namely, Shell,
Petronas, Samling Corporation, Bintulu Port Authority, and
the Royal London Circus had donated to the development
of the public parks. The parks are parts of the Tanjung Batu
Coastal Reserve Master Plan (see Sect. 3.2.7.1, Chap. 3)
(continued)
95
Bintulu central market
The RM5 market was built in 1992 to provide a modern wet
and dry market befitting the fast-growing industrial town of
Bintulu
Multipurpose market
To accommodate mainly the indigenous people to sell their
farm products, BDA awarded a contract worth RM1.8 million
to build the aforesaid market situated next to the Bintulu
central market
Red Crescent headquarters
The RM0.72 million project, designed and constructed by BDA
with the full funding raised from the general public and the
state government of Sarawak, was completely constructed
in 1993. It serves as the office of Red Crescent in Bintulu for
humanitarian assistances without discrimination
Olympic-size public swimming pool
The public amenity project, adjacent to the Bintulu Civic
Center, was built in 1992 at the cost of RM3 million
Sebauh assembly hall
The RM0.53 million assembly hall was built in 1992.
It facilitates better larger scale social activities to be held
at the Sebauh subdistrict
Bintulu outdoor stadium
BDA assisted the Ministry of Social Development to complete
construction of the RM5.4 million sporting facility in 1993.
Covering an area of 24 hectares, the stadium inter alia has
a three-storey grandstand building, soccer field, a running
track, and 1,200 spectator seats. A stadium lake garden,
located next to the stadium, was available in 1994 for leisure
activities. Costing RM0.7 million, the garden combines both
wild plants and beautiful landscaping which conserve the
greenery around it
(continued)
96
L. Teck Hui
Bintulu indoor stadium
As another project by the Ministry of Social Development
assisted by BDA, the RM7.4 million stadium consists of courts
for basketball, badminton, and other indoor sports as well as
related supporting facilities. Capable of hosting 2,000 audi-
ences, it was completely built in 1996
Medan Jaya long-distance bus station
To ease the increased traffic congestions at the downtown
area, the RM2.4 million new bus station was built in 1996 to
divert traffic flows
Bintulu public library
Adjacent to the Bintulu Civic Center, a new Bintulu public
library was built at the cost of RM6.2 million in 1998 to pro-
mote reading habit among the general public. In 2001, BDA
spent about RM0.4 million to expand the collections of the
library to make it more relevant to prospective readers
Kidorung library
Another RM0.5 million new library located at the Kidurong
township, with major population concentration, was built in
1998 to replace an existing temporary arrangement
Three markets for Medan Jaya, Sebauh, and Tatau
Between 1996 and 1998, BDA spent RM1.3 million to build the
aforesaid three markets for the betterment of local farmers
and hawkers in the areas
(c) Municipal From 1989 to 1998
finance The municipal income and expenditure from 1989 to 1998
showed uptrend positions (Income—1989: RM6.8 million;
1998: RM18.8 million; Expenditure—1989: RM3.2 million;
1998: RM11.9 million). The increases in the municipal income
and surplus in the second 10 years were in part due to the
rises in the number of ratable properties. From 1992 to 1995,
the surged in the municipal income could be attributable to
the completed construction of mega petrochemical projects
such as the Shell Middle Distillate Synthesis plant and the
Malaysian Liquefied Natural Gas Plant Two of Petronas which
led to the establishment of more ratable properties in Bintulu.
Meanwhile, the proportionate rises in the maintenance, scav-
enging, and landscaping expenses in relation to the munici-
pal income were in tandem with the expanded needs in the
areas. Despite the financial hardships experienced as a result
of the Asian economic crisis 1997/1998, both the municipal
income and surplus remained constant in 1997 and 1998
97
We got to make sure that we implemented the plans under the first mas-
ter plan such as drainages, roads, and all other necessary infrastructures.
Only then, we can sit back and take a breath, and say, what else we can
do […]. We started with 4,000 people and now we have over 200,000
people in Bintulu to serve. In the past, you can see the market (Bintulu
Central Market) was in wooden shape; the building has been improved
for several times. We have a market for natives call ‘Tamu’ (Multipurpose
Market). We also have other facilities and services. Last time, we used our
own containers with rollers for rubbish collection. In term of the speed
of rubbish collection and solid waste management, I think the improve-
ments have been leap and bound. The damping ground now is also land
filled. Last time, it was an opening dumping ground, dirty, and untreated.
On other aspects, the public library was a small wooden building. Now,
it is a new and big concrete building, air-conditioned, next to the Bintulu
Civic Center. We also have libraries in smaller towns in Tatau, Sebauh,
and Kidurong. Landscaping is another aspect. We planted the Angsana
trees along the roads, which was first of its kind in Sarawak. The trees
were bought from Singapore.7
The landscaping and township beautification efforts were intensified

during the period with the construction of several public amenities such
as the zoo and botanical garden in 1990, the Olympic-size swimming
pool in 1992, the Bintulu indoor and outdoor sport complexes, and
the riverfront esplanade to make Bintulu more pleasing to the residents
and the visitors. In 1991, the municipal division also involved in the
first resettlement scheme, Assyakirin, by BDA to resettle those in need
from the villages surrounding the Bintulu downtown as a result of the
rapid urbanization in Bintulu (see Table 7.2, Chap. 7). As a municipal
services provider, BDA not only has to meet the needs of rate payers but
also to create entrepreneurship opportunities for the local communities.
In 1992 and 1993, for example, BDA had awarded to local enterprises
municipal-oriented contracts worth several millions for maintaining
municipal related works and services.
The municipal division also joined other private firms and govern-
ment-linked agencies such as Malaysia Liquefied Natural Gas Sdn
Bhd, ASEAN Bintulu Fertilizer Sdn Bhd, Bintulu Port Sdn Bhd, and
the Health Services Department to carry out anti-dengue exhibitions,
98
L. Teck Hui
environmental cleanliness operations, and clogged drains campaigns.8

As part of its commitment to improve the rate payers’ quality of
life, BDA continued to implement various health and environmen-
tal improvement initiatives such as the town and village cleanliness
campaigns, the spraying of insecticides in the suspected habitats of
mosquitoes, the acquisition of more trucks for scavenging services,
maintenance of existing roads and drainage systems, as well as the town
and landscaping beautification works. These activities were not confined
only in the Bintulu downtown but also the outlying areas like Tatau and
Sebauh. In 1996, the construction of a new and well-equipped munici-
pal services center started. The center aims to become a one-stop center
for the general public to access to the municipal services.9
In line with the policy of disallowing inter-division buses from enter-
ing the busy Bintulu downtown center, a new business terminal was
built adjacent to the Medan Jaya commercial center in 1996. The buses
will pick up passengers from the new terminal at appointed time to ease
traffic congestions. A coupon parking system was also implemented on
September 1, 1997 in attempting to alleviate traffic and parking prob-
lems. As the population grew during the second boom period, BDA
approved and implemented further more municipal amenities such as
shopping malls, markets, libraries, wildlife parks, sporting facilities, and
playgrounds in housing estates than the preceding boom period to cater
for the increased needs in the areas (Table 6.2).10
6.3 The Third Boom Period: 1999–2008,

till 2013
The very formation of BDA puts a heavy weight on social responsi-
bilities apart from physical developments. The formation as such also
directs BDA to be responsible for taking care of all the social aspects in
developing Bintulu.
If you look at the all functions of BDA under the Ordinance, it men-
tioned the social and economic matters that we have to look after. We
build housing estates, resettlement schemes, garages, civic halls, recreation
99
parks, public amenities, etc. They are not profitable to us, but for the
goodness of the public and social integration […]. I believe Bintulu has
been good in physical developments […]. All of our municipal activities
contribute toward the people of Bintulu. Because when you have good
economy, people live get better. They have a chance to earn money and to
earn the extra income […]. We have carried out a lot of public campaigns
on town cleanliness, health talks, combating dengue, etc. All these con-
tribute to the wellbeing of general public. We build parks to allow them
to interact with each others.11
From 1999–2013, the municipal division of BDA had awarded munic-

ipal-oriented contracts worth of multimillions to the enterprises in
Bintulu for performing regular maintenance works. BDA has continued
its landscaping and beautification efforts. Costing another several mil-
lions, the major beautification projects involved tree and flower plant-
ings along several key access roads, provision of additional attractions
and facilities at the zoo and botanical garden such as animal cages and a
butterfly garden, beautification of the Tanjung Batu beach, construction
of sport and recreational facilities, namely, the Millennium Park and the
Bintulu waterfront promenade.12
My official roles and responsibilities in BDA are to make sure that all the
landscape areas are well maintained in accordance to the standards set
by the BDA management and also the National Landscape Department
[…]. I am monitoring the maintenance of landscape trees planted by
BDA in public, commercial, and industrial areas […]. On landscaping,
we have to do twice per month. For tree pruning, we have to do it at
least once a year […]. Our key performance index is set by the National
Landscape Department of Malaysia […]. We have a committee set up for
the Local Agenda 21 in which the members can decide what to do within
the boundary of the local agendas. They can do river cleaning, assist the
villagers, etc. But we will monitor the spending approved.13
As Bintulu continued to experience influx of people, the traffic con-

gestion was worsening. To tackle the problem, BDA enforcement unit
introduced one-way traffic and installed five new traffic lights at the
center of Bintulu downtown. The RM0.7 million traffic project was
100
L. Teck Hui
Table 6.3 Contributions as a city council—the third boom period (1999–2008,

till 2013)
Municipal Service description
service
(a) Municipal From 1999–2008, till 2013
services During the period, there was continued influx of people
to Bintulu as a result of its promising industrialization.
The municipal division had awarded numerous municipal
related contracts, worth multimillions, to local contrac-
tors to perform maintenance, landscaping, and township
beautification works. The total expenses for maintenance,
scavenging, and landscaping increased from about RM6.9
million in 1999 to more or less RM12.5 million in 2012.
They constituted about 30% of the municipal income (see
Table 7.4 and Fig.7.1  ). More recreational facilities, nota-
bly, the Millennium Park and the waterfront promenade
were built for the benefit of general public. To tackle
traffic congestions and to prepare for the development
of the RM2 billion Central Business District, BDA installed
new traffic lights at the center of Bintulu downtown in
2006 as well as to revise traffic flow system at the busy
Medan Jaya commercial center in 2012. It takes stern
actions in cooperation with other enforcement authori-
ties such as police and land authority to curb illegal swift-
let farming and internet gambling activities in Bintulu
(b) Municipal Tanjung Batu beach beautification project
amenities BDA spent more than RM1.6 million, during the boom
period, to beautify the landscape of the beach and to
build food stalls and other related facilities at the beach
side. Resembling a ‘Hawaii Island’ environment, palm
trees were the dominant decorations. The food stall
facility is a social project that assists hawkers to sell their
foods and drink to the crowds visiting the beach
Bintulu oasis and water fountain
Located at the center of downtown, the RM1.3 million
facility was built in 2002 as part of the BDA’s township
beautification programs
Tatau sport complex
The RM1.5 million complex project, with courts for badmin-
ton and basketball, a soccer field, running tracks and
other related facilities, was completed in 2002 to improve
the provision of public amenities at the Tatau district.
This was a project by the Ministry of Social Development,
assisted by BDA
(continued)
101
Kuala Tatau waterfront
The RM1.56 million waterfront project was completed in
2006. It contains inter alia a children playground, a fitness
center, café, and sporting facilities for the leisure of gen-
eral public at the Tatau district.
Butterfly garden
Located in the zoo and botanical garden, the butterfly
garden was built in 2003 at about RM0.8 million to create
addition attractions to the general public
Millennium park
Located next to the Kidurong township, the RM3.5 million
park can be an ideal recreation outlet for staffs from Shell,
Petronas, Bintulu deepwater port, as well as residents
residing especially at the Tanjung Kidurong area. The
phase I completed in 2006 and phase II in late 2009. The
park features facilities such as skate park, open plaza,
recreational fields, jogging lane, petanque and basketball
courts, free Wi-Fi, and concrete walls. It is a joint project
between BDA and the National Landscape Department
Bintulu waterfront promenade
Completed in 2007 at the cost of RM70 million, the project
is a major township beautification effort to make Bintulu
a more livable city. The 2,300-meter long waterfront
promenade presents a serene panorama that intersects
the Kemena River and the South China Sea as its focus
point. Equipped with security center, unique lighting
designs, restaurants, and plots of plants of various species,
it is a great place for relaxing. Since 2009, there have been
several higher order shopping malls, apartments, and
hotels built surrounding the waterfront promenade area
(see Sect. 7.9, Chap. 7)
1Malaysia business station
The RM4.8 million two-storey terminal was built in 2009
with a bus terminal, five ticketing counters, and 15 mini
shop-lots. The terminal replaced the existing one located
at the congested Multipurpose Market
Esplanade, assembly halls, and public libraries
During the boom period, BDA also spent several millions on
other notable township beautification and social projects,
for instances, upgrading the Bintulu esplanade, building
assembly halls at resettlement areas, and building libraries
at Sebauh, Tatau and some developing townships
(continued)
102
L. Teck Hui
(c) Municipal From 1999–2008, till 2013
finance There were moderate increases of municipal income (1999:
RM20.9 million; 2008: RM37.9 million) but steeper rises
in the municipal expenditure (1999: RM12.1 million;
2008: RM22.8 million) from 1999 to 2008. The completed
construction of the Malaysian Liquefied Natural Gas Plant
Three of Petronas and the RM9 billion Bakun hydro-
electric dam during the first decade of the new century
might have contributed to the rise in the municipal
income between 2002 and 2005. Another much steeper
rise in the municipal income can be seen in 2008/2009,
which marked the beginning of the fourth boom period.
The cause could be attributable to the official initiation
of the SCORE project during the year. During the third
ten years (1999 to 2008), the total expenses on mainte-
nance (RM71,292,162), scavenging (RM21,289,821), and
landscaping (RM33,244,235) represented about 43%
of the total municipal expenses of RM294,115,619. The
first 20 years can be characterized as the prudent cash
flow management whereby modest surpluses had been
accumulated. In contrast, the third 10 years can be seen
as the expansionary municipal policies whereby mainte-
nance and landscaping beautification works had been
much more intensified in reflecting the vision of BDA.
The spending rationale could also be in part due to more
demanding needs asserted by the stakeholders of BDA
in relation to the first 20 years. With the strengthened
municipal income to match against regular expenses, the
municipal division has generated surplus positions again
from 2008 to 2012 (see Table 6.4 and Fig. 6.1)
Sources The BDA annual reports 1999–2014, the BDA newsletters 1999–2014, the
internal sources of BDA, and the newspaper reports
103
Table 6.4 Municipal services Center’s income and expenditure 2009–2012

Item 2012 RM 2011 RM 2010 RM 2009 RM
Development
agency revenue
Development 29,494,382 15,104,695 103,464,576 1,872,587
revenue
Trading revenue 3,932,250 11,899,474 10,430,066 2,308,077
Rental income 1,888,564 1,023,091 2,067,320 2,067,320
Sales of packing – – 943,929 943,929
coupon
35,315,199 28,027,260 116,905,891 7,191,913
Local authority
revenue
Rates 32,601,620 31,204,201 31,168,988 30,667,985
License fees 1,279,407 1,522,659 1,055,375 804,762
Government 9,366,825 12,003,294 11,397,511 9,509,329
grants
Other income 2,779,338 1,874,555 1,918,979 1,662,772
46,027,190 46,604,709 45,540,853 42,644,848
Expenditure Staff
salaries and
expenses:
Employee provi- 310,524 172,158 165,641 209,133
dence fund
Indirect labor/ 13,338,550 11,012,043 10,888,748 10,375,194
salary
Staff medical, 2,743,849 2,372,392 2,278,705 2,549,202
pension and
other
16,392,923 13,556,593 13,333,094 13,133,529
Operating and
administrative
expenses:
Electricity and 4,446,469 3,839,100 4,027,534 2,818,991
water
Transport and 364,911 439,823 401,012 10,861
traveling
Fuel and oil 360,697 344,082 319,111 292,662
Repair and 6,181,040 10,957,154 5,697,256 6,545,667
maintenance
Stationery and 65,483 57,954 3,524 53,553
printing
Telephone and 80,803 93,260 90,311 75,336
telex
Depreciation 106,982 96,912 94,078 78,588
(continued)
104
L. Teck Hui
Item 2012 RM 2011 RM 2010 RM 2009 RM
Landscaping and 3,217,978 4,591,888 3,573,292 3,821,321
grass cutting
Scavenging 3,670,071 6,772,862 4,051,606 5,212,633
expenses
Other expenses 2,419,897 1,922,641 1,499,518 1,742,428
20,914,331 29,115,676 19,797,242 20,652,040
Surplus/(deficit) 8,719,936 3,932,440 12,410,517 8,859,279
Sources BDA annual reports 2009–2012
done in conjunction with the traffic police in Bintulu, which also facil-
itated the development of the Central Business District (see Sect. 7.9,
Chap. 7).14 Besides, the municipal enforcement unit also cooper-
ated with the Land and Survey Department, Police Department, and
Sarawak Forestry Corporation to carry out operations to check on ille-
gal swiftlet farming and internet gambling activities in several residen-
tial and commercial areas in Bintulu. The authorities concerned took
stern actions on the concerned who failed to comply with the BDA’s
enforced regulations.15 As a whole, BDA and its municipal division
have the required financial health and strength to continue the journey
of making Bintulu as a livable and friendly industrial city by 2020. In
2012, BDA is the largest municipal council in the state of Sarawak, also
larger than the many administrative capitals of those smaller states in
Peninsular Malaysia (see Sect. 7.5, Chap. 7) (Table 6.3).
Notes
3. See BDA annual reports 1982–1983 and “Environmental beautifi-
cation and landscaping scheme for Bintulu,” Berita BINDA (BDA
Newsletter), January Issue, 1983.
4. See BDA annual reports 1984, 1986–1988.
5. See BDA annual reports 1982 and 1988.
105
6. The full financial statements from 1981–2008 were enclosed in a sepa-

rate document for review by the publisher.
14. “BDA introduces one-way traffic to reduce traffic jam (translated),’’
Berita BINDA (BDA Newsletter), January–March Issue, 2006, pp. 19.
15. See “Enforcement operation to check swiftlet farming in Bintulu.’’

Berita BINDA (BDA Newsletter), April–June Issue, 2011, p. 10; “Sg.
Nyigu Industrial road cleaning campaign.’’ Berita BINDA (BDA
Newsletter), April–June Issue, 2011, p.11; and Chua (2013).
References
Chua, A. (2013, November 12). Two sides of the same coin. The Star. Retrieved
from http://www.thestar.com.my/News/Community/2013/11/12/Two-sides-
of-the-same-coin/.
The Bintulu Development Authority’s annual reports.
The Bintulu Development Authority’s newsletters.
7
Transformative Corporate Social
Responsibility
Abstract  Apart from integrating the triple bottom-line elements in the

value statements and core routines of the organization, this chapter ana-
lyzes the regular CSR and social programs carried out by BDA, three
major stakeholder management cases with international orientations,
CSR planning and control processes, and the corporate and social per-
formance associated with the core organizational routines as well as the
CSR programs. BDA possesses strategic flexibility to select the projects
that will yield maximized financial returns. At the same time, it also has
the required financial strengths to enter, at the command of its major
stakeholders, those projects whereby the social and/or environmental
impacts outweigh the financial returns. The shared values created by
BDA, reflected as better population growth, industrialization, invest-
ment growth, standard of living, and urbanization in Bintulu, have
broader and longer term of transformative impacts on its stakehold-
ers. The organization is able to fulfill its economic self-interests while
addressing fullest possible the expectations of stakeholders.
Keywords  Social programs · CSR · Shared value · Industrialization

Urbanization · Stakeholders · Community

DOI 10.1007/978-3-319-62476-1_7
108
L. Teck Hui
This chapter first conducts the analyses on the regular CSR and social
programs carried out by BDA, three major stakeholder management
cases, and CSR planning and control processes with the embedded-
ness of triple bottom line considerations (see Sects. 7.1–7.4). The finan-
cial and social performance associated with the core business routines,
as discussed in Chaps. 5 and 6, as well as the CSR programs are then
examined. BDA possesses strategic flexibility to select the projects that
will yield maximized financial returns. At the same time, it also has the
required financial strengths to enter those projects whereby the social
and/or environmental impacts outweigh the financial returns (see
Sect. 7.5). The shared values created by BDA, reflected as better popula-
tion growth, industrialization, standard of living, and urbanization in
Bintulu, have broader and longer term of transformative impacts on its
stakeholders (see Sects. 7.6–7.9).
7.1 Corporate Social Responsibility and Social

Programs
As a public authority, every aspect of BDA’s actions and policies has
direct impacts on the society and vice versa. Apart from integrating
the triple bottom line in the value statements and core organizational
routines, as discussed and analyzed in Chaps. 4–6, BDA also leads and
facilitates additional stand-alone CSR and social programs. Owing to
their popularity, some of the programs are repeated yearly. Under the
led programs, BDA has the full control power over the programs. As
a governmental agency, it also facilitates the implementation of other
social projects carried out especially by the state and federal govern-
ments. Both the led and facilitated CSR and social programs high-
light that CSR elements are tightly embedded in the important ad
hoc initiatives of BDA (see Sect. 2.7.3(d), Chap. 2 on a characteris-
tic of a transformative CSR), and that BDA also leads and facilitates
major internally and externally driven CSR and social programs (see
Sect. 2.7.3(j), Chap. 2 on a characteristic of a transformative CSR).
7 Transformative Corporate Social Responsibility
109
Actually CSR is everybody’s business. I should say it is not only BDA. It

is more on a sentimental approach whereby we need to have the under-
standing that something we take, we should give back; be it recorded or
unrecorded. So, CSR is a very noble thing to do […]. Being a leading
governmental agency in Bintulu, we should have this element. We should
proclaim the good images of our organization and the government.1
Notably, some major led CSR and social programs have been allo-
cated with several million of RM budget each year (see Table 7.1).2
In term of [CSR] expenditure, we are spending more and more […]. We

just finished the Borneo international kite festival, quite costly for par-
ticipants all over the world to participate. Bintulu earns the name to be
the center of this event […]. Months ago, we also organized the Bintulu
Regatta, a tradition that brings people all over in and outside Bintulu to
race in the river […].We are donating here and there. We also become
an investor agent and a tourism agent. We do have people from local as
well as overseas visiting Bintulu. We pick them out from the airport. We
give them briefing and bring them to visit sites. We also give promotions
to businesses interested to set up operations in Bintulu so that they can
make good business decisions to invest in Bintulu.3
BDA also sponsors many other social works open to general public in
collaboration with private and public firms in order to nurture a har-
mony society. Some of the programs are, for example, cleaning cam-
paigns, blood donation, promoting reading habit, environmental
awareness seminars, and sport coaching. It also gives prizes and spon-
sorships to, namely, Curtin University Sarawak Campus, Hospital
Columbia Asia, NGOs, and local schools for promoting social and edu-
cational programs.4
Rapid urbanization often leads to the rise in cost of living. In prac-
ticing its social obligations, BDA embarked on its first resettlement in
1986, the Assyakirin resettlement scheme. It has allocated lands for the
development of more than a dozen low- to medium-cost housing pro-
jects and resettlement schemes from the first boom period to present.
Costing hundred over millions of RM, the projects provide houses rea-
sonably adequate in standard for low- to middle-income households to
110
L. Teck Hui
Table 7.1 CSR and social programs by Bintulu Development Authority

Type CSR and social program
(a) L ed CSR Borneo international kite festival
and social Started in 2005, the yearly program promotes social integration
programs and creates spin-off effects for local business communities.
The weeklong festival features events such as World Sport Kite
championship, kite workshop, stunt kite performance, and food
fairs. In the 2012 event, 118 entries inter alia from England,
Columbia, Hong Kong, Turkey, China, Indonesia, Singapore,
Denmark, Switzerland, and the USA were received
Regatta
It is a series of boat races prevalent among the Dayak ethnics. In
2012 event, a total of 3245 participants took part in 34 events.
250 lots were set up by local traders to welcome visitors (The
Borneo Post 2012)
Lantern and food festival
The event is held during the Chinese mid-autumn to commemo-
rate Chinese culture, besides promoting social integration. It
features various cultural performances and activities for charita-
ble causes. Proceeds from the food fairs are donated to various
NGOs in Bintulu
Donation
BDA allocates each year a sum of money for donation. For
example, it donated several millions cash in 2012 to support the
establishment of Bintulu Orphanage Welfare Complex by the
state government
Enhanced staff welfare programs
In addition to the standardized civil service remuneration scheme,
BDA provides schemes such as subsidized staff housing, fixed
assets financing, personal development opportunities, and
enhanced medical packages for its employees
Sport tournament
BDA organizes and sponsors tournaments on golf, badminton,
soccer, indoor football, and many other competitions, open
to the general public in order to develop a healthy society.
Entrance fees to the sporting facilities are either free or at the
minimal level in order to make them more accessible to the
general public
(continued)
111
Type CSR and social program
(b) Facilitated Poverty alleviation program
CSR and This is a social project by the federal government to assist house-
social holds and single parent, with income below RM1,000 per month,
programs to receive living allowances and training opportunities. BDA pro-
vides basic amenities to the sites involved in providing the train-
ing programs. The qualified participants receive training in the
areas, such as food processing, tailoring, farming, and retailing
for them to be equipped with basic skills to earn a living later
One Mission program
The program, complementary to the poverty alleviation program,
provides grants to qualified recipients to start a business so that
they can earn enough to leave the poverty line. For 2012, the
Welfare Department channeled about RM136 million to 51,157
recipients of monthly assistance in Sarawak. A total of 3505
recipients from Bintulu received about RM9.9 million in funds
(Yussop 2013)
One Malaysia welfare terminal
Under this federal government’s social project, BDA provides a
free learning center for children from a family with income
below RM2300 per month. The center is equipped with a com-
puter laboratory that enables students to get online tutorial
away from their school hours
Sepadok integrated farm
BDA, in collaboration with the Rural and Regional Development
Ministry, embarked on the aforesaid commercial agriculture
farm project program, near the Sepadok river, Kemena. With
an initial capital of RM1 million, the project’s ventures include a
cluster breeding chicken for meat, breeding of catfish in canvas,
and fertigation planting system. It aims to help the targeted
agriculturally dependent communities to acquire essential skills
necessary for their own eventual survival without resorting to
governmental assistances
Bintulu orphanage welfare complex
The RM10 million complex (for phase I) is a social project by the
Sarawak state government under the spirit of caring for the
welfare of society. BDA gives donations and coordinates the
construction of the complex which can accommodate up to 500
orphans at one time (The Borneo Post 2011)
BDA-Shell traffic education program
The yearly traffic game was first organized in 1983. In 1990, BDA
built a permanent traffic garden, located next to the Bintulu
Civic Center, at the cost of RM400,000. The traffic game program
aims to install road safety awareness among school students in
view of the increasing volume of traffic in Bintulu
Sources The BDA annual reports (1986–2008), the BDA newsletters (1980–2011),
the internal sources of BDA, and the newspaper reports
112
L. Teck Hui
curb the rise in cost of living as a result of the rapid urbanization in

Bintulu. The sources of financing for all these projects were from the
state and federal governments as well as BDA. Table 7.2 presents the
key contributions by BDA in the areas over the three boom periods.
7.2 Strategic Planning and Annual Budget

Meeting
This section seeks to examine the research objective stated in
Sect. 1.1.2(b), Chap. 1 concerning the main features of CSR planning
and implementing processes within the larger part of BDA’s strategic
planning processes. The specially endowed authority under the BDA
Ordinance 1978 and the financial strengths drive the strategic planning
process of BDA with CSR added on.
In term of the BDA ordinance, BDA has far more authority than the
other local authorities because we have the authority to do planning in
Bintulu. Even though if the overall planning for a project is done in the
Land and Survey Department, the recommendation of BDA is a must
before anything can be done in Bintulu. So, the other local authorities
do not have such authorities. And, in that aspect, we are the best in term
of town planning. We also have the authority of collecting land premium
whereby it brings income to BDA – the authority not enjoyed by other
authorities. So, we have far more authorities on planning and land pre-
mium collection from governmental state lands. They boost our financial
income […]. People know that BDA has very good source of income.
But, our core businesses [priorities] are development and municipal ser-
vices. CSR naturally is a joint product of the core businesses. It represents
a good governance practice of the organization.5
Several CSR adoption enabling factors to the strategic planning pro-

cess where CSR plans are presented for evaluation, budget allocation,
and implementation are discussed as follows:
113
Table 7.2 Community and social development projects by Bintulu Development

Authority
Type Community and social development project
(a) Low cost hous- Kidurong low cost housing (phases I, II, III, and IV)
ing project Started in 1986, the RM40 million phase I project, with 508 resi-
series dential lots, was completed in 1989. The RM15.2 million phase
II project, with 338 units of terrace houses, was fully built in
1997. Both phases eased demands for affordable housing
as a result of the influx of workers finding employment at
the Shell Middle Distillate Synthesis plant and the Malaysian
Liquefied Natural Gas Plant Two of Petronas project. The
construction of 330 residential lots for the RM20 million
phase III project was fully completed in 2002. In view of the
high demand for medium-low cost houses, BDA completed
construction in 2006 another 361 units at the cost of RM27
million under the phase IV
Sibiyu low cost housing
Costing RM12.7 million, this is the second low cost housing
project by BDA, with 161 unit residential lots, ready for sales
to the qualified general public in 1989
Jepak village Permai low cost housing
This RM1.09 million project aimed at providing residential lots
to the fishermen residing along the coastal area near the
Jepak village. Its construction was fully completed in January
1995
Jepak village extension scheme (phases I and II)
The RM13.14 million extension or modernization initiatives
took in two phases. The 300 lots under the phase I were com-
pleted in 2006 and the remaining 225 lots under the phase II
in 2008
Sebiew medium cost housing
BDA collaborated with a private firm to complete construction
74 unit medium costing houses under the project in 2007.
Twelve units were reserved for the BDA staffs and the rest
were opened for the general public
(continued)
114
L. Teck Hui
Type Community and social development project
(b) Resettlement Assyakirinresettlement scheme(phases I, II, and III)
project series Under the scheme, the less fortunate families from the sur-
rounding villages next to the Bintulu downtown were
resettled with residential sites and infrastructural services
at minimal costs. In 1990, BDA allocated 169 land lots to
the successful applicants. Phases I and II were completed in
1993/1994, and phase III more or less in 1999. There were a
total of 334 land lots allocated for all the three phases. The
owners have to construct the houses on the lands allocated at
their own expenses. All units offered under the schemes have
been fully taken up
Sg. Plan resettlement (phases I and II)
To resettle the squatters, the RM3.4 million phase I project,
with 446 residential lots equipped with infrastructural
services, was completed in 1995. Under the phase II of the
scheme, there were a total of 309 empty land lots allocated by
BDA to the qualified applicants. The project was completed in
2003 at the cost of RM5.6 million
Sales of 53 units of ‘People Harmony’ houses at Jepak village
Permai scheme
In 1996, BDA allocated 53 units empty land lots at the Jepak
village to fishermen residing in the area. The buyers have to
construct houses on the empty land on their own. In 2006, all
the lots were fully taken up
Sebauh and Pandan resettlement
Sebauh resettlement scheme was allocated with 194 empty
land lots in 2000. Between 2009 and 2010, BDA developed
another 123 housing lots under the RM3.7 million Pandan
resettlement scheme located at the Sebauh subdistrict. Several
hundred people from the outskirt areas have benefited from
the developments which bring more lively social and eco-
nomic activities to the areas
(c) Other commu- Zero squatter initiative
nity and social As a result of the rapid rural–urban migrations, squatter com-
projects munities sprang up along river banks and roads. They lived in
crowded and unhygienic environments. BDA cleared squat-
ter huts and developed low-cost housing and resettlement
schemes for those less fortune
Regency Plaza hotel
Built in partnership with a private firm and a governmental
agency, the RM32 million international hotel was opened in
1989 to accommodate the continuous influx of international
visitors and tourists coming to explore the potential opportu-
nities in Bintulu
Sources The BDA annual reports (1990–2005), the BDA newsletters (1986–2006),
the internal sources of BDA, and the newspaper reports
115
7.2.1 Corporate Planning and Innovation Department
This department consists of two units, innovation management services

as well as research and statistics unit. The former focuses on quality
improvement efforts. Occasionally, it organizes strategic retreats every
one or two years to set the vision, missions, objectives, and CSR pro-
grams of BDA.
BDA used to have strategic retreats, whereby officers and top manage-
ment have serious brainstorming sessions for yearly programs and plans.
This is also part of the strategic planning for mid- and long-term pro-
grams. The strategic retreat is an avenue for BDA staffs to discuss and put
forward their ideas. BDA chooses for a retreat probably because it is with
lesser disturbances. The strategic retreat is a strict and confined session
with serious discussions and arguments for any programs and plans, for
examples, a five-year programs or 10-year programs. It is on yearly basis.6
Conversely, the research and statistics unit provides measurement on

customer satisfaction on certain key projects, for instance, poverty alle-
viation programs and rural development projects. The corporate plan-
ning and innovation department serves as the central coordinating unit
for the annual strategic planning meeting of BDA, a meeting taken as
the equivalent to the organization’s annual budget meeting.
7.2.2 Two Master Plans
Whatsoever plans are proposed during the annual budget meeting, the
two master plans, the Bintulu Regional Center Study and the Bintulu
Urban and Regional Study (see Sects. 3.2.5 and 3.2.6, Chap. 3), are the
exclusive guides to BDA. As discussed, the master plans incorporate social
and environmental considerations in proposing all development plans.
7.2.3 Annual Budget Meeting
BDA needs to plan about a year ahead what it wants to do the next
year. Before the annual budget meeting, the corporate planning and
116
L. Teck Hui
innovation department distributes budget circulars and directives.

Drafting business and CSR plans come from the divisions or from the
top management to the managers. The strategic planning process as
such is a regular, decentralized, and formalized organizational routine
that brings together these intertwining “bottom-up” and “top-down”
organizing and strategizing interactions. Each department will submit
the bids for projects during the annual budget meeting. Regular CSR
and social programs (see Sect. 7.1) along with newly proposed CSR
programs will be reviewed at the responsible individual departments for
budget allocation approval during the annual budget meeting. Other ad
hoc CSR programs, either from BDA itself or from the state and federal
governments, can be directed from the top management to the depart-
ment levels for planning and execution. After screening by internal pan-
els, the endorsed plans are submitted to the Board of BDA for approval.
What is approved with budget allocation will be implemented. All
budgeted plans in BDA are outcome-based, i.e., they must have good
impacts on the public and the economy.7
7.2.4 Role of Top Management
Top management is the central to the annual budget meeting, as they

approve all the budgeted business and CSR plans. On the endorsed
business and CSR initiatives, they would keep track their performance
in daily job routines and monthly management meetings.
I can say we work within our budget […]. It will be better by adding in some
more budgets. Because now the places [to maintain in Bintulu] become
bigger and bigger […]. But, within the budget limit, we try to perform the
best we can. We have to optimize the usage of our manpower in order to get
things going […]. Nowadays, the management is very supportive.8
7.2.5 Business Environment
Rapid changes in business environment may invalidate the logic of for-

mal strategic planning. The geopolitical environments in Malaysia has
117
been stable, though there have been recent calls for more reforms in the
public sectors. BDA is very unique. It gets funding not only from the
state and federal governments, but also the bulk of income that actually
come from its own through lucrative land premium receipts as a result
of massive industrial developments. Bintulu is an economy with heavy
dependence on the performance of oil and gas, as well as resource-based
industries. With favorable market destinations, it has been immune
largely from major external shocks, such as the Gulf war in 1990s, the
Asian economic crisis 1997/1998, the Subprime crisis 2008/2009, and
the Eurozone crisis 2011/2012. As such‚ the strategic planning model of
BDA has been relatively stable over the years, but with growing empha-
ses on addressing the needs of stakeholders proactively.
7.3 Three Stakeholder Management Cases

As a public authority, stakeholder management is an indispensible part
of daily organizational routines. With reference to Sect. 2.2, Chap. 2
and the Interview Questionnaire Set C (Appendix A), this section seeks
to deal with the research objectives stated in Sect. 1.1.2(b), Chap. 1, by
examining the three major stakeholder management cases in BDA and
how they were integrated within the larger part of the corporate strate-
gic planning processes of the organization for creating positive organi-
zational performances. The cases cover suitably the strategic areas of
development and municipal services of BDA. Section 7.4 will look into
the various stakeholder management and performance control mecha-
nisms of BDA.
In what follows, the author examines the three cases, namely, the Rio
Tinto aluminum smelter project, the Azenertel-Kanuli Tanjung Batu
beach resort project, and the Trienekens scavenging services. In addi-
tion to BDA, below are brief details of about the other key actors to the
cases.
(a)
Rio Tinto. Headquartered in the UK, Rio Tinto is a major inter-
national mining group with listing on London, New York, and
Australian Stock Exchanges;
118
L. Teck Hui
(b)
Azenertel-Kanuli group. Azenertel Holdings Sdn Bhd and its
subsidiary, Kabuli Sdn Bhd, are the local property development
companies. They undertook the development of the Tanjung
Batu beach resort in the early 1990s;
(c)
Shin Yang group. Shin Yang is a major local Chinese-based con-
glomerate with diversified business activities such as construc-
tion, plantations, hypermarket, and hotel business. It succeeded
Azenertel-Kanuli group to complete the phase I of the Tanjung
Batu beach resort project; and
(d)
Trienekens. A Germany-based company joint-ventured with
the Sarawak state government on November 7, 1998 to form
Sarawak Waste Management Sdn Bhd to implement in Sarawak
an Integrated Solid Waste Management System, concerning the
successful integration of collection, transportation, treatment,
and disposal of municipal and scheduled wastes. Trienekens
(Sarawak) Sdn Bhd, was later incorporated on June 8, 1999 to
operate the said system.
Table 7.3 summarizes, namely, background, development and stake-

holder issues, and recent situations of the three cases.
The stakeholder management approaches, based on the four dimen-
sions of stakeholder theory identified by Laplume et al. (2008), are then
presented in Sects. 7.3.1–7.3.3. In term of the “stakeholder definition
and salience” theme, the preceding paragraph presented the key actors
to the cases. They perceived that the projects were feasible with no det-
rimental effect on the general public and the natural environment. The
followings are the findings on the remaining three themes:
(a) Stakeholder actions and responses

(i) Aluminum smelter project: the general public concerned
with the fact that the project will have detrimental effects
on the public health and the natural environment. They
protested by using multiple means.
Table 7.3 Three stakeholder management cases—background and development
Case Background Development and stakeholder issue Recent situation
(a) Rio Tinto • In 1979, the Bintulu • Cahya Mata Sarawak Bhd and Rio Tinto • Both firms ceased to jointly set
aluminum Regional Center Study planned to jointly construct an alu- up the smelter in the early 2012,
smelter proposed to build an minum smelter plant worth RM7 billion as viable terms on power supply
aluminum smelter at Samalaju Industrial Park by signing with Sarawak Energy cannot be
plant at the Tanjung a memorandum of understanding in finalized. Cahya Mata Sarawak
Kidorung area, 15 km February 2008. They entered nego- took up 20% share in the RM1.8
away from the Bintulu tiation with Sarawak Energy Bhd on a billion ferroalloy smelting
downtown power supply generated from the Bakun plant established at Samalaju
dam (Ali 2012; Rio Tinto Alcan 2008) Industrial Park by an Australian-
• Motivations for the set up inter alia based company, OM Holdings
were to capitalize the growing demand Ltd. (Ali 2012)
from China and India (Ali 2012), to
use the ample hydroelectricity to fuel
Samalaju Industrial Park (Thukral 2008),
and to create about 5000 direct and
indirect jobs (Cahya Mata Sarawak Bhd
2008)
• Critics argued that the project will have
detrimental effects on the public health
and the natural environments. The pro-
longed Subprime and Eurozone crises
suggested that the financial risks associ-
ated with the proposed project may well
beyond the levels that the companies
involved can bear (Malaysiakini 2008;
Towie 2012)
119
(continued)
(b) Azenertel- • In the early 1990s, • The phase I comprised two blocks • In 2009, the phase I project
Kanuli Azenertel-Kanuli group of luxury apartments, scheduled for was completed by Shin Yang
120
Tanjung undertook the RM160 completion by the middle of 1996. Set group, as part of their RM500
Batu million iconic beach for completion by 1997, the phase II million investment to revitalize
beach resort project in two was made up of a five-star hotel, two the beach resort project (Wong
L. Teck Hui
resort phases. BDA approved blocks of condominiums, and an island 2007)

the project under the completed with marina and recreational • The proposed phase II construc-
spirit of its Tanjung facilities for water sports. The beach tion works are progressing
Batu Coastal Reserve resort project would make the affluent
master development lifestyle of living possible in Bintulu
plan (see Sect. 3.2.7.1, • Unfortunately, there was stoppage of
Chap. 3) the phase I of the project before 1996.
The reasons for stoppage, though were
unconfirmed, were perceived to be
attributable to poor corporate govern-
ance, incompetent project promoters,
and the looming Asian economic crisis
1997/1998
• The stoppage aggrieved the general
public and the authorities concerned.
The critics blamed the inefficiency of
BDA in tackling the problem swiftly
(continued)
(c) Trienekens • BDA started outsourc- • The general public need not have to • In September 2012, BDA
scav- ing its municipal pay additional rates for the Trienekens indicated its intention to take
enging scavenging and waste scavenging services, which employs envi- over the waste collection from
services management services to ronmental friendly technology. BDA also Trienekens, under the spirit of
Trienekens on August constructed a 300-acre, modern sanitary the outsourcing arrangement.
1, 2005 landfill site at the Tanjung Kidurong As a recovery measure, BDA
• The outsourcing area, Bintulu (Member of Parliament had provided more trucks to
arrangement seeks to Bintulu News Room 2005) Trienkens to cope with increased
maintain the highest • Trienekens is being paid by Sarawak waste collection volume (The
hygienic standard at Waste Management Sdn Bhd for its Borneo Post 2012a)
the areas concerned in services instead of the perceived-to-be • Trienekens handed over the
Bintulu less viable individual households (Thien scavenging services to BDA on
2001) October 1, 2013. It continues to
• The firm has received some notable manage the more lucrative day-
industrial environmental awards (Chia to-day waste disposal opera-
2014; The Borneo Post 2010) tions of the waste dumpsite,
• As Bintulu is growing, so are its domes- located at the Tanjung Kidurong
tic and commercial wastes. In 2011, the area (The Star 2013)
number of complaints received from
the general public on the scavenging
services escalated to a challenging level
(Yussop 2012)
Sources The BDA annual reports and newsletters 1994–1996 and the internal sources of BDA
121
122
L. Teck Hui
(ii) Beach resort project: the buyers protested as they felt that
the authorities concerned awarded the project to incom-
petent property developers. They were happy to accept
the revised terms for completion under a new developer.
(iii) Scavenging services: the tax and rate payers filed their
suggestions through official channels for improvement
actions.
(b) Firm actions and responses
(i) Aluminum smelter project: the investing firms carried
out a project feasibility study. BDA addressed all queries
raised on the project and coordinated meetings with all
concerned in the project.
(ii) Beach resort project: the new developer, Shin Yang group,
revised new terms with the existing and potential buy-
ers to complete the phase I of the project in 2009. BDA
approved the revised engineering plan promptly.
(iii) Scavenging services: meetings were held to make known
the concerns of Trienekens and the general public to
BDA. BDA had offered several means to the parties con-
cerned to improve the refuse collection services.
(c) Firm performance
(i) Aluminum smelter project: as the energy price cannot
be finalized, the project did not materialize. There were
replacements by other investing firms to continue the
project at a smaller scale.
(ii) Beach resort project: for the buyers and the new devel-
oper, they enjoyed value appreciation and better sales
record as a result of the booming local economy. By hav-
ing more iconic buildings in Bintulu, BDA discharges its
role as the promoter of private investments.
(iii) Scavenging services: BDA values Trienekens’ international
expertise in providing the scavenging services. The gen-
eral public did not incur additional assessment tax charges
for enjoying the services. Trienekens’ can explore further
business opportunities in the growing local economy.
123
Harrison and Wicks (2013) argue that stakeholder theory provides a

more complex perspective on measuring the notion of value that has
been overly narrowed to focus on economic returns. Pursuing a broad
stakeholder management orientation, can be path dependence and caus-
ally ambiguous for imitation within the framework of the resource-
based view theory (Harrison et al. 2010; Reed and Defillippi 1990;
Verbeke and Tung 2013). The three cases analyzed suggest that stake-
holder management mechanisms are embedded in the core organiza-
tional routines of BDA, vital for easing the tensions between financial
returns and social obligations. By creating shared responsibility, join
decision making and learning, dialogues, and prioritizing stakeholder
interests, stakeholder management can be a core competence that maxi-
mizes both economic and social value.
7.3.1 Rio Tinto Aluminum Smelter Project
Stakeholder management approaches. Sarawak has big hydropower poten-

tials as a result of the completed construction of the Bakun and Murum
hydroelectric dams. But, the state is less competitive in setting up large
scale manufacturing plants for meeting the regional needs. The pro-
posed aluminum smelter plant was in line with the development goals
of the state and BDA in uplifting the GDP growth and socioeconomic
developments of the state to a whole new level.9
Rio Tinto was among the first committed to invest in Samalaju
Industrial Park. In fact, there was a smaller plant first proposed in the
Bintulu Regional Center Study, nearer to the populated downtown of
Bintulu. As the local communities were sacred by the potential nega-
tive causes that the plant will bring, there was even a bigger outcry
from them on the Rio Tinto’s project, even though the new site at
Samalaju Industrial Park is 60 kilometer away from the downtown. The
Environmental Impact Assessment report was displayed to the general
public for scrutiny. Only with no serious objection, the firms can pro-
ceed with the construction of the aluminum plant.10
BDA provided the infrastructural facilities at Samalaju Industrial
Park and anything the investing firms wanted to know about Bintulu
124
L. Teck Hui
in their feasibility studies. It also facilitated their liaison with the other
authorities concerned in the state.
But somehow, the aluminum market was slowing down in past few years.
China slowed down, which is the biggest importer of aluminum. The
United States and the EU also slowed down. The firms found it not fea-
sible to proceed. The GDP in the world major economies are not grow-
ing. Rio Tinto also carried out some corporate restructuring exercises in
Australia. The Samalaju Industrial Park has to move on with some other
confirmed projects. The site allocated to the proposed Rio Tinto plant
was reallocated.11
When the interested investing firms wanted to carry out the project,
the aluminum price was attractive in the world market. But, there were
recessions everywhere around the world when the plant was ready to
be built. There was a timing mismatch. The need for such a world-size
plant is no longer logical from the economic and risk perspectives. A
smaller plant, with production capability of 320 thousand tons per year,
was subsequently built in 2012 by a Malaysian investor for the ASEAN
region markets (Wong 2012).
7.3.2 Azenertel-Kanuli Tanjung Batu Beach Resort

Project
Stakeholder management approaches. The beach resort project was a pri-

vate sector development project approved by BDA whereby the devel-
opment function was given to the private sector. The State Planning
Authority in Kuching later endorsed the approval.
Coming back to the benefits to the people of Bintulu, I think we need

some landmarks whereby they indicate that BDA is promoting devel-
opments. Now, there is such a high-rising apartment at the edge of the
recreation area [the Tanjung Batu Coastal Reserve area] which marks the
progress of Sarawakian […]. To enhance the value of the coastal reserve,
there shall be an apartment complex at its entrance to provide high-class
living style to the local and expatriates living in Bintulu […]. As said, the
125
beach resort enhances the value of Tanjung Batu coastal reserve whereby
in every city you need to build green lands just like the Central Park in
New York, the Hyde Park in London, and the Lake Gardens in Kuala
Lumpur. There was no such park in Sarawak […]. We were just playing
the role of approving on the site, building, and engineering plans.12
The project was delayed further for almost ten years from 1996. The
existing developer negotiated with new partners to revive the project.
BDA addressed the queries for any issue raised in the public and the
parliament, and approved the new engineering plans without delay. The
new developer, Shin Yang group, completed the phase I of the project in
2009.13
Bintulu is undergoing fast pace of economic and population growth all

the time even though there were ups and downs. As a whole in the past
30 years, it has grown more than any other divisions in Sarawak […].
Because there are insufficient units of residential properties in Bintulu,
the prices of properties are skyrocketing […]. The buyers were given an
option to sell back [if they felt aggrieved]. Given the price advantages [as
a result of the booming local property market], most of them didn’t sell
back but continue to commit to existing purchases […]. After negotia-
tion, the price of a unit studio increased from RM60,000 to RM130,000.
But, the buyers still felt that the revised price was a fair price […] for a
similar unit, it could cost between RM280,000 to RM400,000 now in
Bintulu […]. So, it was a win-win situation for both the developers and
the buyers. The prices of property and rental are good.14
The buyers bought the apartment units at low prices. Now, they enjoy
good rental income as well as more than double appreciation in value of
their properties as a result of booming local economy.
It must be added that the timing of the project is crucial. The pro-
ject’s stoppage took place well before the happening of the Asian
economic crisis 1997/1998. But, it was completed in 2009 when
Bintulu began to embrace its fourth boom as a result of the initiation
of Samalaju Industrial Park. The economy of the park has created the
required impetus to rematch neatly the demand and the supply of the
beach’s phase I project.
126
L. Teck Hui
7.3.3 Trienekens Scavenging Services
Stakeholder management approaches. Financial aspect was still the utmost

important issue for BDA to consider whether to outsource or not the
scavenging services, as without which core organizational routines
would be handicapped. With sound financial positions, BDA intends
to create shared value to allow its stakeholders to enjoy more legitimate
benefits from the activities of its core businesses.15
Against the above backdrop, Trienekens, a big company with interna-
tional expertise and advanced facilities in the areas, was contracted to han-
dle the scavenging services in Bintulu. The private sector could be more
efficient in carrying out the services.16 Previously, BDA divided the refuse
collection areas into several zones, contracted out to smaller contractors.
Trienekens took over the whole areas. Any complaints from the public
went directly to the company. BDA made the payments accordingly for
the services rendered at the month end. Trienekens did its jobs very well
initially. The things started to change in 2011, when the company seemed
to loss its workers to firms in Samalaju Industrial Park.17
The costs of fuel increased. Labor costs also increased. These affected
Trienekens’ costing and services. The general public called its hotline. It
didn’t respond promptly […]. We investigated […]. We decided that all
complaints went to us directly so that we knew what was going on […].
With this, it was easier for us to do rescue works […]. In the past two
years [2011/12], its services deteriorated. It told us many of its workers
left to join big firms at the Samalaju Industrial Park.18
Actually, the rate BDA has collected from the general public is not
quite sufficient to cover the cost of scavenging services, as it has not
been revised for so many years to reflect the current cost of living in
Bintulu, among the highest in the country.19
The company has 25 years of concession. It handed the scavenging ser-

vices back to us. Maybe it can’t stand the public’s complaints […]. BDA
used to provide the company [with] something good initially […]. When
the company informed BDA its intention to hand over, there were several
127
meetings to sort out the problems to make the transfer smoothly. We

informed the Board of BDA what was going on. After all concerned were
informed, we went to press to announce publicly that the refuse collec-
tion to be handled by us again.20
Trienekens was firm on its decisions to hand over the scavenging ser-
vices back to BDA. Nonetheless, the firm is permitted to retain the
more lucrative dumping site maintenance services under the exist-
ing outsourcing contract. BDA values Trienekens’ international exper-
tise and participation in the local social, environmental, and economic
developments.
7.4 Organizational Resource Capabilities

and Performance Control Mechanisms
This section seeks to examine the research objective stated in
Sect. 1.1.2(c), Chap. 1 concerning the strategic actions of BDA
on the performance outcomes of its CSR initiatives. It also looks
into the stakeholder management mechanisms of the organization
so as to address the residual part of the research objective stated in
Sect. 1.1.2(b), Chap. 2, partially addressed in the preceding Sect. 7.3.
The organization in this section proceeds as below. First, the organiza-
tional resource capabilities of BDA are discussed. Various stakeholder
engagement and control mechanisms, the residual part of the research
objective stated in Sect. 1.1.2(b), are, then, presented before examining
the performance control issues.
7.4.1 Organizational Resource Capabilities
Section 2.7.3(f ), Chap. 2 indicates that a key characteristic of a trans-

formative CSR is that a firm must have the required organizational
resource capabilities to fulfill its economic self-interests and societal
expectations.
128
L. Teck Hui
Table 7.4 Balance sheet for financial years 2009–2012

Item 2012 2011 2010 2009
RM RM RM RM
Non-current assets
Property, plant and 128,128,133 87,090,336 90,160,832 96,319,476
equipment
Development 231,033,335 310,409,743 167,316,119 195,310,557
expenditure
Land held for 127,226,395 – – –
development
Investment in asso- 22,274,620 22,467,329 36,744,172 32,324,378
ciates
Other investments 52,959,836 55,207,224 73,460,363 71,753,633
Long-term receiva- 5,428,200 6,111,411 4,000,660 4,753,020
bles
567,518,519 481,286,043 371,682,146 400,461,064
Current assets
Inventories 9,736,250 13,761,318 23,120,261 15,034,377
Property develop- 33,408,812 – – –
ment costs
Trade receivables 19,393,067 16,769,535 24,059,927 13,895,073
Other receivables 141,230,446 93,776,713 129,449,730 62,535,193
Cash and bank bal- 279,229,554 460,262,387 230,197,601 182,766,498
ances
582,998,129 584,596,953 406,827,519 274,231,141
Current liabilities
Short-term borrow- 1,415,362 2,128,698 2,054,243 2,290,383
ings
Trade payables 89,551,089 102,093,538 118,766,843 69,597,360
Other payables 21,513,939 11,787,055 23,715,397 51,965,647
Tax payable 93,494 94,281 649,620 1810
112,573,884 116,103,572 145,186,103 123,855,200
Net current assets 470,424,245 468,466,381 261,641,416 150,375,941
1,037,942,764 949,752,424 633,323,562 550,837,005
Financed by
Development 684,924,568 491,201,401 420,985,861 400,769,574
reserve fund
Local authority 296,052 286,052 296,052 296,052
reserve
Capital reserve – – – 2,565,872
Retained surplus/ 47,987,936 45,645,279 17,174,608 (1,569,739)
(loss)
733,208,558 537,142,732 438,456,521 402,061,759
(continued)
129
Item 2012 2011 2010 2009
RM RM RM RM
Minority interests 7,233,800 6,914,510 6,645,639 6,483,983
740,442,356 544,057,242 445,102,160 408,545,742
Long term borrow- 13,054,789 14,470,151 16,469,643 18,444,458
ings
Deferred tax liabili- 31,504 24,702 23,913 13,179
ties
Deferred income 284,414,115 391,200,329 171,727,846 123,833,626
297,500,408 405,695,182 188,221,402 142,291,263
1,037,942,764 949,752,424 633,323,562 550,837,005
As the leading authority in Bintulu, BDA is expected to do a lot of things

[…]. The general public and politicians expect us to assist as we have the
technical expertise like planners, architects, and engineers to carry out
projects whether they are building or infrastructure around Bintulu […].
Our ad hoc authority will be coordinating various governmental agencies
[…]. The coordination is where BDA controls the social problems, and
pulls the governmental agencies together to support big firms and small
and medium size enterprises.21
Organizational internal and external resources need to be pooled

in order to create distinctive assets for sustained value creation.
Sections 3.2.1–3.2.8 in Chap. 3 basically describe the state of BDA’s
organizational resource capabilities. Amongst others, the organization
has the special statutory rights endowed under the BDA Ordinance
1978 to develop the resourceful Bintulu region and to raise crucial
financial resources on its own to implement different development,
municipal, and social programs. Consequently, it is able to develop and
maintain essential organizational resource capabilities to meet its statu-
tory obligations.
130
L. Teck Hui
Table 7.5 Profit and loss accounts for financial years 2009–2012

Item 2012 2011 2010 2009
RM RM RM RM
Revenue 35,315,199 28,027,260 116,905,891 7,191,913
Local authority 46,027,190 46,604,709 45,540,853 42,644,848
income
Local authority (37,307,254) (42,672,269) (33,130,336) (33,785,569)
expenses
Operating 46,303,711 112,099,242 22,968,935 10,026,149
income
Cost of sales and (33,738,847) (20,888,302) (106,039,241) (4,166,896)
services
Contract costs – – – –
Administrative (38,303,166) (33,597,339) (26,853,863) (41,274,729)
and other oper-
ating expenses
Finance costs (477,658) (485,763) (533,727) (671,012)
Other expenses (21,049,074) – – –
Profit/(loss) from (3,229,899) 89,087,538 18,858,512 (20,0035,296)
operations
Share of result of 1,946,234 (2,373,489) 2,692,017 1,693,457
associates
Profit/(loss) (1,283,665) 86,714,049 21,550,529 (18,341,839)
before taxation (439,139) (1,240,067) (1,965,026) (482,557)
Taxation
Profit/(loss) after (1,722,804) 85,473,982 19,585,503 (18,824,396)
taxation (417,543) (1,215,988) (841,156) (13,492)
Minority interest
Net profit/(loss) (2,140,347) 84,257,994 18,744,347 (18,837,888)
for the year
7.4.2 Stakeholder Engagement Mechanisms
A firm chooses a mix of engagement and control mechanisms to reduce

tensions between managers and stakeholders. BDA has used various
engagement and control mechanisms,22 as below, to engage its stake-
holders and control its performance:
(a) Internal oriented. The board of BDA, the legal department,

the committees for tender, recruitment, finance and invest-
ment, land, and audit, the public relation unit, innovation
131
Item 2009 2010 2011 2012

RM' million RM' million RM' million RM' million
Revenue 49.84 162.45 74.63 81.34
Profit before taxation (18.34) 21.55 86.71 (1.28)
Net profit (18.84) 18.74 84.26 (2.14)
Cash and bank balance 182.77 230.20 460.26 279.23
Long-term borrowing 18.44 16.47 14.47 13.05
Net current asset 150.38 261.64 468.47 470.42
Net asset/worth 550.84 633.32 949.75 1,037.94
1,200.00
1,000.00
800.00 Revenue
Profit before taxation
600.00 Net profit
Cash and bank balance
400.00 Long-term borrowing
Net current asset
200.00 Net asset/worth
-
RM'million RM'million RM'million RM'million
(200.00) 2009 2010 2011 2012
Fig. 7.1 Trends in financial performance and position 2009–2012
management services unit, research and statistics unit, monthly

management meeting, staff performance appraisal, and the
TQM council; and
(b) External oriented. The five-star rating assessment exercise, the
advisory council, 24-hour customer hotline, customer day, and
democracy means
The TQM council and the five-star assessment rating are more for
assessing the effectiveness of municipal services. They are looking evi-
dence of service performance in every aspect of municipal services,
including community development works.23
Besides, BDA also uses especially the social media to inform its
stakeholders on what it has been doing. Notably, British Broadcasting
Corporation (BBC) conducted a special interview with the general
manager of BDA at the BDA headquarters on June 17, 2011. On May
3, 2011, two leading international magazines, namely, Oxford Business
132
L. Teck Hui
Table 7.6 Revenue of municipal councils in Sarawak

Municipal council 2010 RM’000 2011 RM’000 2012 RM’000
Bintulu Development 165,760 126,781 179,772
Authority
Kuching North City 89,427 105,996 115,780
Kuching South City 82,936 84,105 86,275
Miri 66,556 75,649 71,635
Sibu 57,826 58,603 61,000
Sri Aman 10,006 9255 11,571
Limbang 6574 6603 8250
Sarikei 15,748 16,044 17,269
Kapit 9066 7176 9338
Samarahan 15,196 14,596 17,911
Mukah 6842 7133 9142
Betong 5004 5137 7859
Source Department of Statistics Malaysia, Sarawak statistics yearbook (2013,

p. 259)
Group and Inside Investor also conducted interviews with the gen-
eral manager. The interviews dwelled, amongst others, on the subjects
of BDA’s functions and responsibilities toward the development of
Bintulu, and the impacts of Samalaju Industrial Park have on the econ-
omies of Bintulu and Sarawak.24
7.4.3 Actions on Performance Control
Organizational control exists to ensure a firm is pursuing strategies

which enable it attains its goals. One aspect of control is to assess actual
against planned performance, and reacting to the results shown.
When we approve the budgeted projects, they shall be completed within

the prescribed timeframe and goals set. If you can’t finish, the projects
will be withdrawn. Now, it becomes more critical to finish the project on
time. We do have project management and monitoring meetings whereby
we assign jobs for external and internal consultants to make sure that
the projects are tendered out timely. The normal operational activities
like yearly audit by the National Audit Department and the accounting
133
Table 7.7 Expenses of municipal councils in Sarawak

Municipal council 2010 RM’000 2011 RM’000 2012 RM’000
Bintulu Development 76,177 80,566 191,532
Authority
Kuching North City 84,644 89,401 101,084
Kuching South City 63,747 65,549 71,950
Miri 55,087 69,868 67,811
Sibu 49,185 55,222 62,053
Sri Aman 8317 8583 10,967
Limbang 5552 6638 7769
Sarikei 10,633 11,609 12,652
Kapit 6901 7381 7929
Samarahan 9168 12,167 16,499
Mukah 6756 8384 11,157
Betong 3925 4799 6674

p. 259)
statutory audit, whether internally or externally, are to make sure that the
performance of BDA is in accordance with the relevant guidelines, the
governmental rules and regulations, etc. During the annual budget meet-
ing, any business and CSR plans not consistent with the governmental
treasury plans and, if possible, the best practices elsewhere will not be
given consideration.25
That said, the annual budget meeting in BDA monitors the inputs into
the core organizational processes to ensure the desired project outcomes.
The managers have to submit estimates for the business or CSR plans,
without contriving budget restrictions, for implementation approval by
the top management.
BDA expects its employees to be CSR sensitive. They shall be
engaged in CSR routines. The purpose of providing targets and measur-
ing performance is to motivate staffs to achieve those targets. If rewards
are based on job-related performance results, not CSR compliance, the
role of CSR can be of secondary importance when its execution is nei-
ther measured nor rewarded. In order for the staffs to achieve excellent
rating (95% and above) in their formal job performance appraisal, BDA
134
L. Teck Hui
Table 7.8 Principal exports value and percentage distribution in Sarawak

Principal exports Value Percentage distribution
RM million (%)
2011 2012 2011 2012
Crude petroleum 22,701.2 21,273.8 22.6 20.5
Petroleum products 908.2 1262.2 0.9 1.2
Liquefied natural 52,048.8 56,129.10 51.8 54.2
gas
Urea 712.6 524.7 0.7 0.5
Saw logs 1793.2 1556.7 1.8 1.5
Sawn timber 704.6 783.2 0.7 0.8
Wooden mouldings 13.4 22.9 0.0 0.0
Plain plywood 3834 4060 3.8 3.9
Veneer sheets 349.8 381.6 0.3 0.4
Black pepper 207.9 187.4 0.2 0.2
White pepper 76.5 63.9 0.1 0.1
Rubber 501.9 265.7 0.5 0.3
Palm oil 8274.5 7959.3 8.2 7.7
(crude and pro-
cessed)
Palm kernel oil 1136.1 769.3 1.1 0.7
Sago flour and 91.0 86.3 0.1 0.1
starch
Prawns, fresh, 147.2 118.1 0.1 0.1
froze

pp. 152–152)
expects them to carry out two or more CSR initiatives or community

services with positive impacts to societies and with international signifi-
cance.26
BDA has also conducted surveys on the rural development projects
and poverty alleviation programs for continuous improvement. For
those CSR programs (see Sect. 7.1) led by BDA, the year-to-year finan-
cial and manpower allocations (see Appendix B) as well as collabora-
tion on social programs from the public and private sectors are on the
uptrend.
135
Table 7.9 Major investments in the oil and gas industry

Investment Description
(a) Petronas The complex is made up of the Malaysian Liquefied Natural Gas
liquefied Plant One (RM3 billion, completed in 1983), Plant Two (RM5.8
Natural billion, completed in 1995), and Plant Three (completed in
Gas 2002). It is the largest and most technologically advanced lique-
Complex fied natural gas production facility in a single site in the world
and one of the biggest revenue-earners to Malaysia (Ji 2013)
(b) The RM4.6 million 500-kilometer gas pipeline links Kimanis,
Petronas Sabah to the Petronas Liquefied Natural Gas Complex, Bintulu.
Sabah- Commencing in 2013/2014, it channels 750 million standard
Sarawak cubic feet of gas per day, making the complex as the center for
gas pipe- processing and storage liquefied natural gas resources
line
(c) Petronas The Train 9 project is part of the RM15 billion capital project by
train 9 Petronas. With a capacity of 3.6 million tons per annum, the
Train 9 gas processing plant will be able to increase the produc-
tion capacity of the Petronas Liquefied Natural Gas Complex
to 29.3 million tons per annum by 2016. Its ready for start-up
is in 2015/16. The liquefied natural gas export by the complex
contributes to some 40.5% to Sarawak’s gross export, 6% to
Malaysia’s total export, and 4.2% to the national GDP (Ji 2013;
Malaysia LNG Sdn Bhd 2013)
(d) The The RM740 million project, operational in 1985, is a joint-venture
ASEAN undertaking among the ASEAN countries. It was estimated at
urea/ the time of its commencement the plant would generate for-
ammonia eign exchange earnings at RM225 million per annum
plant
(e) Bintulu Sarawak has a total known crude oil reserve of about 0.8 billion
crude oil barrels of which 0.35 billion are situated offshore Bintulu. The
terminal construction of the RM80 million “Sarawak Shell Bintulu plant”
was completed in 1979. It serves as the storage and handling
facility for the export of oil from Bintulu to various interna-
tional destinations
(f) Bintulu The plant is an additional facility at the Bintulu crude oil terminal
conden- which processes condensate, a liquid with light hydrocarbons,
sate sta- into a marketable product. Its construction was completed in
bilization 1982 at the cost of RM50 million
plant
(g) Bintulu Situated adjacent to the condensate stabilization plant, the
additional facilities were operational in 1984. They supply gas to Sarawak
gas sales Energy and the ASEAN urea/ammonia plant. By the end of 1992,
facilities Shell Middle Distillate Synthesis plant started to receive gas sup-
ply from the facilities
(continued)
136
L. Teck Hui
Investment Description
(h) Shell The RM2 billion project started operation in 1993. It is the first
middle commercial gas-to-liquid plant in the world. It converts natural
distillate gas into high quality synthetic oil products and specialty chemi-
synthesis cals which are paraffinic and colorless
plant
(i) Bintulu Built at the cost of RM17 million, the urea formaldehyde resin
adhesive factory was operational in 1991. Being the first of its kind in
and chem- Sarawak, the plant produces resins for the booming local down-
ical plant stream timber processing industries and urea formaldehyde for
the ASEAN urea/ammonia plant
Sources The BDA annual reports (1979–2002) and newsletters (1983–2013)
We should be a better listener in order to improve the situations. More

personal touch needed. It is not about showing that we have the control
and authority. Be a good listener. Digest the complaints. Strategizing on
what we have listened, and looking back to readjust accordingly so that
we have the correct strategies all the time. Revision is the keyword that
I believe. There is no single ideal strategy. People are moving fast. The
community has different levels of mindset. They also change. We need
to come in and make sure that BDA can catch up the pace of change
faster.27
Besides, performance measurements presented from Sects. 7.5 to 7.9

below addressing the two criteria of a transformative CSR, namely,
Sects. 2.7.3(e) and 2.7.3(h) which form the explanatory parts of the
research objective stated in Sects. 1.1.2(d), Chap. 1. They also allow
BDA to see how well its stakeholders see it performing in the dimen-
sions of social and financial.
The other seven criteria of a transformative CSR were addressed in
the previous sections and chapters. The followings are the recaps:
2.7.3(a) Th
e organization exists legitimately. The criterion was dis-
cussed in Sect. 3.2.1, Chap. 3. The BDA Ordinance 1978
governs the legitimate formation and operation of BDA;
137
2.7.3(b) Th ere are healthy institutional structures and environments

governing the organization’s operations. As discussed in
Sects. 3.2.2 and 3.2.3, Chap. 3, there are organizational
internal and external variables that constraint the behaviors
of BDA;
2.7.3(c) CSR culture is pervasive at all levels of the organization and
2.7.3(d) CSR elements are tightly embedded in the organiza-
tion’s mainstream operations as well as in its important ad hoc
initiatives. Chapters 5 and 6 described the embeddedness of
triple bottom line considerations in the core organizational
routines of BDA;
2.7.3(f ) The organization possesses required organizational resource
capabilities and conditions to fulfill its economic self-interests
and societal expectations. This section and Sects. 3.2.1–3.2.8
in Chap. 3 discussed the state of BDA’s organizational
resource capabilities;
2.7.3(j) It leads and facilitates major internally and externally driven
CSR programs. Section 7.1 discussed the major CSR and
social programs led or facilitated by BDA; and
2.7.3(k) It has a future point of view on CSR and sustainability develop-
ment. The analyses in Sect. 3.2.8, Chaps. 3, and 4 indicated
that BDA has strategic intents and missions with related
structured plans to translate them into real actions up to
year 2020.
The remaining three criteria, namely, 2.7.3(g), 2.7.3(i), and 2.7.3(l)

will be investigated collectively in Sect. 8.1, Chap. 8.
7.5 Financial Strength

For a CSR to have transformative effects, Sect. 2.7.3(e), Chap. 2 indi-
cates that the firm concerned must have the financial flexibility, i.e.,
it is able to achieve the triple bottom line simultaneously or at least a
healthy financial return. The discovery of huge reserves of natural gas
and oil offshore Bintulu in 1968 triggered the economic reason for
138
L. Teck Hui
Division Good Moderate Unhealthy Very unhealthy Hazardous

(0-50) (51-100) (101-200) (201-300) (>300)
Bintulu 221 145 - - -
Kuching 243 123 - - -
Sri Aman 307 56 2 - -
Sibu 308 58 - - -
Miri 300 66 - - -
ILP Miri 314 36 9 5 1
Limbang 341 23 - - -
Sarikei 276 89 - - -
Kapit 283 74 - - -
Samarahan 273 93 - - -
400
350
300
250
Good(0-50)
200 Moderate(51-100)
150 Unhealthy(101-200)
100 Very Unhealthy (201-300)

Hazardous (>300)
50
Fig. 7.2 Air quality status in Sarawak in 2012 Source Department of

Environment, Ministry of Natural Resources and Environment (see Malaysia
Environmental Quality Report 2012, p. 18)
the existence of BDA (Friedman 1970). Indeed, the liquefied natu-

ral gas and crude petroleum accounted for 53 and 20.1% of Sarawak’s
total exports in 2012 (Department of Statistics Malaysia 2013, p. xxix).
BDA can both coordinate and implement various economic, social, and
infrastructure development projects on its own in the Bintulu region.
Besides, it is also empowered to generate revenue on its own, an author-
ity not enjoyed by other city councils or local authorities. The crucial
financial resources raised can, then, be used to further the organization’s
corporate agendas in discharging its statutory obligations.
139
BDA is very unique. It gets funding not only from the state and federal
governments, but also the bulk of income actually from BDA itself to
fund development expenditures. BDA’s funding is depending very much
on the economic activities in Bintulu. The more industrial estate set-ups,
the more firms will buy lands. And, the land premiums collected will go
to BDA […].The entitlement to the land premiums collected enables
BDA to have its own lucrative source of income. So, sourcing funds to
cater for the needs of BDA’s core businesses has not been a problem; a
privilege envied by other departments because we have more revenue, and
we can generate it on our own.28
The financial positions of BDA since its inception in 1978 have been
satisfactory. BDA has been able to generate enough revenues on its own
to cover its operating expenditures. Compared to a mere RM3 million
at the end of the first financial period in 1979, the net asset value of
BDA as of December 31, 2012 was more than RM1 billion. This rep-
resents an average of 10% annual growth rate over a period of 34 years,
despite the occurrence of several external economic shocks. The munici-
pal services division recorded about RM0.96 million in revenue in
1981. As a result of the rapid growth in the number of ratable proper-
ties and collectible business licensing fees, the revenue soared to about
RM46 million in 2012, a 479% rise compared to 32 years ago.29
Not to mention, the financial position of BDA at the end of the
third boom period and till 2012 was preparing Bintulu to attain its
vision to become a friendly industrial city status (see Tables 7.4, 7.5 and
Fig. 7.1). There was remarkable improvement in liquidity as the cash
and bank balances exceeded the net current asset value for at least up
to year 2011. BDA was able to carry out its development and munici-
pal activities without relying much on the long-term borrowings during
the period. Tables 7.6 and 7.7 show that among the city and municipal
councils in Sarawak, the revenue and expenditure figures of BDA have
been the highest since 2010. In 2010, it overtook the top position pre-
viously dominated by the North Kuching City, located at the Kuching
administrative capital. In 2012, the revenue and expenditure figures
of BDA were more or less the same as the combined figures of the
North Kuching City and the South Kuching City. Numerous business
140
L. Teck Hui
entrepreneurial opportunities have been created especially to the local

communities and those residing outside the areas of Bintulu. The con-
tinued financial strengths would position Bintulu better to attain a
friendly industrial city status by 2020.
7.6 Investment Growth and Living Standard

Fixation with financial measurements could lead financially resourceful
BDA to downplay social and environmental measures such as quality of
life, effectiveness in natural resources utilization, and socially responsible
behaviors.
Of most of the CSR programs, you cannot measure their outcomes in

dollars and cents. The impact is there after years of doing it, but it is easy
to say that damage can be done overnight. But to build it, it is not that
easy; to gain the trust and unity, you have to earn it.30
Sections 7.6–7.9 examine other overall salient performance outcomes,

other than the quantifiable financial results (Sect. 7.5), stemming from
the implementation of the core businesses (Chaps. 5 and 6) as well as
the CSR and social programs (Sect. 7.1). As stated in Sect. 2.7.3(h),
Chap. 2, a transformative CSR creates shared value that is perva-
sive among a firm’s stakeholders, and with longer term of impacts.
The firm concerned not only possesses viable financial strengths and
resource capabilities, but also other social and environmental perfor-
mance dimensions depending on a strategic context. As such, the over-
all impacts of its intended triple bottom line performance (Chap. 4),
leveraged through resource allocation in the core operations and CSR
programs (Chaps. 5–7), can be better ascertained than a stand-alone
context (for example, a product, a project, or an operation).
Factors such as abundant natural resources, competitive renewable
energy, and infrastructure facilities built have played a vital role in the
industrialization process of Bintulu since 1978. While embarking on
its core municipal and development functions, BDA continues to play
an active role in promoting and coordinating investments in industrial
141
and commercial developments. Large local and international firms and

small and medium size enterprises have been attracted to Bintulu to
take advantage of its tremendous development plans. As can be seen
from Table 7.8, petrochemical and palm oil have been the two most
dominant income contributors to the economy of Sarawak. Together,
they accounted for more than 90% of the total export value of the state
in 2012. The two industries are also reflective in the state of industrial
development in Bintulu since the inception of BDA in 1978. Hence,
the analyses in this section will focus on the state of investment growth
of the two industries in Bintulu.
7.6.1 Oil and Gas Industry
Sarawak has a total gas reserve of about 50 trillion standard cubic feet.
85% of this reserve is situated offshore Bintulu and the rest is offshore
Miri. Petronas together with production sharing contractors, for exam-
ple, Shell, are actively exploring and exploiting the gas prospects in the
regions (BDA 2000, p. 14). Table 7.9 below enlists some major petro-
chemical related investments in Bintulu.
7.6.2 Palm Oil Industry
7.6.2.1 Oil Palm Planted Area
Following the opening up of land along the Bintulu-Miri road in the

mid-1970s, large scale plantations within Bintulu hinterland areas have
been developed (BDA 2000, p. 13). In 2012, Bintulu has the second
largest oil palm planted area, including large and small estates, after
Miri. Both divisions remain the two key foreign exchange earners for
the palm oil industry in Sarawak (Sarawak total: 987,230.21 hectare;
Bintulu: 165,419.49 hectare or 16.76%; Miri: 300,503.97 hectare or
30.44%).31 In 2013, the total combined planted areas in Sarawak
and Sabah (East Malaysia), for the first time, exceeded the combined
11 states in the Peninsular Malaysia (mature area in hectare: East
142
L. Teck Hui
Malaysia—2,291,896; Peninsular Malaysia—2,234,193; immature area

in hectare: East Malaysia—344,110; Peninsular Malaysia—359,540)
(Malaysian Palm Oil Board 2014, p. 29).
7.6.2.2 Number of Palm Oil Mills and Palm Oil Industry Cluster
More palm oil refinery and fractionation plants have been constructed
as more plantation estates have been opened up in the Bintulu hinter-
land. In 2013, Sarawak was ranked after Sabah as the state with the sec-
ond largest number of palm oil related mills in Malaysia (Malaysia total:
472; Sabah: 136; Sarawak: 81). Out of 81 mills, there were 63 active
ones with production capacity of 14,943,000 tons fresh fruit bunch
per annum (Malaysian Palm Oil Board 2014, p. 29). According to the
statistics provided to the author by the Malaysian Palm Oil Board’s
Sarawak office, Bintulu has 13 palm oil related mills, i.e., the second
largest in Sarawak as of June 30, 2014. There were 24 in Miri. More
than half of the production capacities in Sarawak are located in Bintulu
and Miri.
From Chap. 5, Table 5.3 on “Palm Oil Industry Cluster,” BDA
awarded a contract worth RM27.45 million in 2008 to construct the
Palm Oil Industry Cluster. The cluster is expected to attract a total
investment of RM600 million. In 2014, all the 19 industrial land
lots at the cluster were fully taken up by major local and international
Table 7.10 Cargo exported and imported at principal ports in Sarawak

Year Kuching Sibu Bintulu Miri
Export Import Export Import Export Import Export Import
‘000 ‘000 ‘000 ‘000 ‘000 ‘000 ‘000 ‘000
Freight Freight Freight Freight Freight Freight Freight Freight
Tons Tons Tons Tons Tons Tons Tons Tons
2008 1641 4477 3406 1604 35,871 4600 6155 684
2009 1317 4225 3193 1547 34,323 4121 5028 605
2010 1671 5123 3506 1679 35,792 4833 5411 745
2011 2148 6532 3225 1825 36,805 4899 4908 865
2012 1571 5885 1649 1615 35,711 5447 4871 845
Source Department of Statistics Malaysia, Sarawak statistics yearbook (2013, p. 244)

143
Table 7.11 Number of persons and average annual growth rate by division in

Sarawak
Division Population Average annual growth
(%)
1991 2000 2010 1991–2000 2000–2010
Sarawak 1,642,771 2,009,893 2,420,009 2.24 1.86
Bintulu 86,132 139,012 183,892 5.32 2.80
Kuching 369,069 494,109 593,671 3.24 1.84
Miri 161,373 221,055 294,716 3.50 2.88
Sibu 166,894 206,297 240,402 2.36 1.53
Sri Aman 48,278 52,963 64,905 1.03 2.03
Limbang 33,899 39,817 46,947 1.79 1.65
Sarikei 42,689 48,132 56,798 1.33 1.66
Kapit 55,608 56,709 57,776 0.22 0.19
Samarahan 33,173 46,966 86,275 3.86 6.08
Mukah 26,217 29,570 43,284 1.34 3.81
Betong 50,033 55,625 60,298 1.18 0.81
Source Department of Statistics Malaysia, Sarawak statistics yearbook (2013, p. 14)
agribusiness investors including Sime Darby for the projects include

production of palm olein, crude palm kernel oil, palm bio diesel and
crude glycerol, palm oleochemicals for cosmetics and toiletries, etc. The
cluster would accelerate development of palm oil downstream industry
and related supporting industries. It strengthens the competitive edge of
the palm oil industry in Sarawak, as Bintulu would be crowned as the
center of refinery for palm oil products of the state.32
Bintulu essentially is the premier industry center in Sarawak. As fur-
ther confirmed in Table 7.10, the cargo export value in any year from
2008 to 2012 from the Bintulu deepwater port was more than triple
the combined total of the three other major ports located in Kuching,
Sibu, and Miri. The scenario is expected to hold in the foreseeable
future. Table 7.11 in Sect. 7.7 indicates that Bintulu is relatively less
populated than Kuching, Sibu, and Miri, suggesting that the aver-
age households in Bintulu have the highest level of disposal income in
Sarawak. Malaysia attracted the highest ever recorded FDIs in 2011.
Among the states, Sarawak attracted the highest FDIs with RM8.17
billion. The second and third position went to Penang (RM4.48 bil-
lion) and Selangor (RM4.38 billion). More than 90% of the FDIs in
144
L. Teck Hui
Sarawak went to Bintulu, due to the initiation of the SCORE pro-

ject in 2008 with Samalaju Industrial Park as its major growth node
(Damodaran 2012; Hillson 2012). The inception of SCORE project
(see Sect. 7.8) and the initiation of Bintulu region township moderniza-
tion series (see Sect. 7.9) would make the people of Bintulu to continu-
ously enjoy relatively better quality of life than their peers.
7.7 Population Growth

Population is an important factor for assessing the economic base and
outlook for development of an urban area such as Bintulu division.
The influx of immigrant workers, both local and abroad, into Bintulu
was seen in the first boom period as a result of the initiations of several
mega projects such as the Malaysian Liquefied Natural Gas Plant One
of Petronas, the Bintulu crude oil terminal, the Bintulu deepwater port,
and the ASEAN’s urea/ammonia plant. Since then, more and more peo-
ple have been attracted to the Bintulu region as a result of its acceler-
ated infrastructural, industrial, social, and economic developments (see
Chaps. 5–7).
The completion of the Malaysian Liquefied Natural Gas Plants Two
and Three of Petronas, Shell Middle Distillate Synthesis plant, Bintulu
International Airport, and Sabah-Sarawak Gas Pipeline project dur-
ing the second and third boom periods had attracted more foreign and
local investors to Bintulu. Along with the Petronas Train 9 project and
the development of Samaluju Industrial Park, massive employments,
and business opportunities have been created. Based on the Malaysian
national census study in 2010, Bintulu population reached 183,892 in
2010 compared to 86,132 in 1991 (see Table 7.11). If inclusive Tatau
district and Sebauh subdistrict, the total population figure in 2010
could reach about 220,000. It enjoys the highest population growth rate
from 1991 to 2010 with an average of 4.06% per annum if compared
to other major divisions in Sarawak such as Miri (3.19%), Kuching
(2.54%), and Sibu (1.95%).
145
Table 7.12 Major confirmed investment projects at Samalaju Industrial Park

Company Investment RM Principal activity
1. Press Metal Bhd RM2 billion Aluminum
smelter plant
2. Tokuyama Corporation RM7 billion Poly-crystalline
plant
3. Asia Mineral Ltd/Pertama RM790 million Manganese fer-
Ferroalloy roalloy smelt-
ing plant
4. OM Holding RM1.8 billion Ferro alloy
smelting plant
5. Sakura Project (Sumitomo RM1.05 billion Manganese
J/V Assmang and China smelting plant
Steel)
6. Malaysian Phosphate RM1.04 billion Phosphorous
Additive Sarawak Sdn Bhd plant
7. Dongbu Metal Co Ltd and RM1.95 billion Metalic silicon
Asian Cement Co Ltd plant
8. Smelter Asia Sdn Bhd RM4.5 billion Aluminum
smelter plant
9. Elkem A.S. RM32.1 million Electrode paste
plant
10. Asia Advance Material RM720 million Metal silicon
Sdn Bhd plant
11. Cosmos Petroleum and RM1.6 billion Polysilicon plant
Mining Sdn Bhd
12. Press Metal Bhd carbon RM500 million Carbon plant
13. Leader Universal RM2 billion Aluminum
Aluminum smelter plant
14. Aimbest Steel RM200 million Alloy manga-
nese plant
15. Ho Wah Genting Bhd RM200 million Alloy manga-
nese plant
16. Makmoni Sdn Bhd To be confirmed Polymer-related
plant
17. SIG Gase Bhd RM5.2 million Air separation
unit
18. Samalaju Property To be confirmed Samalaju town-
Development ship develop-
ment
Sources RECODA and BDA
146
L. Teck Hui
If the population growth rate can be maintained at 4% per annum,

Bintulu population is expected to reach approximately 325,653 by
2020. This would make Bintulu with enough population to be crowned
as a friendly industrial city by 2020.33
Bintulu is quite different from other towns in Sarawak such as Sibu and
Miri. Bintulu is a relatively new town. People are coming all over places.
We have population growth of about four per cent to seven per cent a
year during the boom time. BDA has the responsibility to make sure
that people coming all over the places have a sense of belongings. Social
integration activities are needed to promote social integration in Bintulu
[…]. Inter-racial activities need to be promoted so that the social integra-
tion can be better achieved in the town like Bintulu.34
The series of CSR and social programs presented in Chaps. 4–6, and

Sect. 7.1 that seek to encourage social interactions and to assist the less
fortunate portions of local communities to create more wealth might
have contributed to the positive developments in population growth
and social harmony in Bintulu.
7.8 Industrialization and Strategic

Diversification
Under the SCORE project, the state government of Sarawak entrusted
BDA to coordinate the development of the Samalaju node, powered
by the renewal energy generated from the Bakun hydroelectric dam
started in 2011 and Murum dam in 2014. As the best performing node,
Samalaju Industrial Park has attracted investments with total value more
than RM30 billion as of July 2014 (see Table 7.12). The park is focus-
ing on the development of heavy industries.
The SCORE project initiation is based on the potential renewable ener-

gies that Sarawak can generate. Initially, there was a thought about chan-
neling electrical power generated from the Bakun hydroelectric dam to
the Peninsular Malaysia. Nonetheless, the State Planning Unit came up
147
Table 7.13 Bintulu central business district development packages

No. Development package Development compo- Implementing agency/
nent developer
1 Kemena bridge no. 2 Bridge spanning State government/BDA
Kemena river, and
traffic dispersal sys-
tem on both banks.
Incorporate restaurant
and visitors’ viewing
areas on piers
2 Central Boulevard Six to eight lanes with BDA
wide landscaped
divider along old air-
port runway; include
parking areas and new
Sebiew bridge
3 Town square For formal functions, BDA
for example, parade
and public gathering
4 Formal garden Floral garden, show- BDA
casing local species
of flowers and trees;
statues, etc.
5 Public parks For passive and active BDA
recreation (play-
ground, jogging
tracks, etc.)
6 Convention Center Conversion of exist- BDA
and Waterfront ing market buildings
Esplanade to convention hall,
exhibition center,
regatta gallery, etc.
Development of
adjacent Bintulu
esplanade, involving
land reclamation, river
wall, etc.
7 Commercial core Widening of roadside BDA
townscape enhance- walk, pedestrianiza-
ment tion, landscaping,
street furniture, drain-
age, car park, utility
lines, etc.
(continued)
148
L. Teck Hui
No. Development package Development compo- Implementing agency/
nent developer
8 Village redevelop- New commercial build- Private developer and
ment scheme ings, plazas, road and other governmental
car parks, resettlement agencies
scheme (in another
location), etc.
9 New market and vil- New market complex, BDA and/or private
lage heritage car parks, roads, developer
jetties, etc. Village
style houses used for
restaurants, gift shops,
handicraft center, liv-
ing museum
10 Tower block (office Iconic building for Governmental agencies
and commercial) corporate headquar- and/or large corporate
ters, include shopping groups
podium.
11 Mixed development Medical center Private
#1
12 Mixed development Educational center Private
#2
13 Mixed development Apartments Private
#3
14 Mixed development Leisure center Private
#4
15 Intersection improve- Road diversion, signal Public Works
ment to ring road or grade separation, Department or BDA
relocation of Public
Works Department’s
office block
16 Sultan Iskandar road/ New dual carriageway Public Works
Law Gek soon link to ease flow of north– Department or BDA
road south traffic into
the Central Business
District bridge span-
ning Kemena river
17 Beautification of Landscaping, pedestrian BDA
Bintulu civic center to walks, redevelop-
and surrounds ment of old buildings
for new uses such as
museum, etc.
Source Bintulu central business district master plan, Table 5.2

149
with the Samalaju Industrial Park so as to industrialize Sarawak first. It

is actually a natural progression […]. We have been hosting coordination
meeting on monthly basis with investors in the SCORE project, listen-
ing and trying to solve their problems. We have coordination with other
departments such as police, fire and rescue, immigration, land and survey,
environment, custom, regional executives of SCORE, Sarawak Energy,
etc. to make sure that the needs of the investors are really well-taken care
of.35
In the past, the economy of Sarawak has been heavily depending on the
growth of petrochemical and palm oil industries (see Table 7.8). The
development of Samalaju Industrial Park will provide a strategic indus-
trial diversification to the economy of Bintulu. It signifies a new ray of
hope of a better economic shift, and triggers a new stream of migra-
tion to Bintulu. Up to July 2014, BDA spent RM367,687,764, under
the federal government’s grant, to develop the required infrastructural
works for Samalaju Industrial Park. BDA is prepared to commit at least
up to RM600 million on the development of the park.36 Sarawak con-
tributes about 8% to the overall real GDP growth of Malaysia. The
SCORE project would harness massive hydroelectric power in Sarawak,
mainly from the Bakun and Murum dams, to make the long-term eco-
nomic growth of the state a reality. It is expected to drive the economy
of Sarawak to achieve 10% growth by 2015 (Say 2013).
Covering an area of 8000 hectares, Samalaju Industrial Park is
located about 60 km away from the downtown of Bintulu to ensure
pollutant industries are not at the backyard of Bintulu people. Apart
from the sites development for the confirmed projects (see Table 7.12),
the other integral components of the industrial park include the
Samalaju Port and the Samalaju eco-friendly township.
BDA will need to create a new town in Samalaju for 50,000 people. BDA
does the planning. We got the land already. We have started planning.
BDA will joint-venture with private sectors to build this new town. Those
are the obligations we are fulfilling at the Samalaju so as to transform it
from a palm oil jungle to a major international industrial park.37
150
L. Teck Hui
The RM1.8 billion phase I project of the Samalaju port, to be fully

operational in 2016, will be able to handle six million tons of cargo
volume. On the other hand, the Samalaju eco-park, the RM66 mil-
lion four-star Tanjung Samalaju resort hotel, the Samalaju commercial
central, and Samalaju light industrial estate are the core elements of the
township.38
The social, financial, and environmental obligations of BDA will
grow in tandem with the establishment of Samalaju Industrial Park.
The FDIs bring in more people, houses, and properties in Bintulu. This
will increase our areas of operation not only in Bintulu but also Samalaju,
a new township that will be under the direct responsibility of BDA.
CSR of BDA will grow […]. CSR expectations from the local and for-
eigners will be more. New schools will be built according to the popula-
tion level […]. The Samalaju project wants to bring the Nyalau people’s
income to the next stage. Once the project is completed, there will be
30,000 employment chances for middle-income earners; most of them
are our locals and the Nyalau people residing close to the industrial park.
[…]. Of course, the people of Bintulu know Bintulu cannot grow itself
without some control measures. BDA initiates control actions in order to
promote Bintulu to become a friendly industrial city status as stated in
its vision statement. The people know now that originally there was an
aluminum smelter at the Tanjung Kidurong area. But, it is now located at
the Samalaju Industrial Park which is 60-kilometer away from the down-
town of Bintulu. The pollutant industry is not at their backyards.39
Figure 7.2 shows that the air quality in Bintulu was acceptable in 2012
despite being the most industrialized town in Sarawak. It was quite
at par with Kuching, with no undesirable air quality status recorded
throughout the year.
Through better fulfillment of the hierarchy of needs, the stakehold-
ers should have improved perception on the credentials of BDA as a
socially responsible organization.
Industrialization is always related to pollution. We don’t want the indus-

tries to pollute the environment. We have the Natural Resources and
Environmental Board of Sarawak and also Department of Environment
151
of Kuala Lumpur around to monitor the pollution level in Bintulu which

is acceptable and within control. Besides taking care of air and water, we
got to make Bintulu beautiful and good to the eyes. BDA has assisted the
two governmental agencies’ offices in Bintulu.40
Bintulu already has few big parks and reserved green areas at the
Tanjung Batu Coastal Reserve area where the BDA headquarters,
the zoo and botanical garden, and the golf course are located. It has
about 500 acres green area at the heart of the Bintulu downtown.
Nevertheless, the accelerated industrialization in Bintulu needs contin-
uous solid preventive efforts to preserve the natural environment as a
valuable heritage from the public agencies, private firms, NGOs, and
BDA.
7.9 Urbanization and Livable City

BDA is moving toward the friendly industrial city status. In June 2013,
it commissioned Konsortium Malaysia to carry out the Bintulu Central
Business District Master Plan study for recommending proposals to be
implemented between 2004 and 2020. The study covered aspects of
land use planning, urban design, landscape planning, and transporta-
tion planning (Konsortium Malaysia 2005, p. 3).
As a result of the SCORE project, there are high demands on the com-
mercial, housing, and industrial estates. The projected RM1.6 billion
Bintulu Central District expenditures are mostly from the private sector
investments. The consultants have done the survey on who shall be filling
in the space. It is a free market force. BDA’s contribution is on the build-
ing of the Central Boulevard at the old airport. The rest are the private
sector investments.41
“Livable City” means the environment shall be clean and the town-
scape attractive for both visitors and investors. As the plan is compli-
mentary to the Bintulu Urban and Regional Study, the “livable” concept
needs to be integrated into all levels of the BDA’s core businesses. The
152
L. Teck Hui
Central Business District, covering an area of about 328 hectares,

is the business, financial, and administrative hub of Bintulu. It needs
to be friendly, attractive, vibrant, efficient, and adaptive to changes
(Konsortium Malaysia 2005, p. 2). Some major components of the
development packages under the Bintulu Central Business District
Master plan have been completed or progressing include, for example,
Bintulu town square (see Table 5.3), Bintulu Paragon, and new dual
carriageway to ease flow of north–south traffic into the Central Business
District bridge spanning Kemena river (Sultan Iskandar road/Law Gek
Soon link road). There are 17 major development packages identi-
fied within the Bintulu Central Business District (see Table 7.13). The
packages would be carried out by BDA, governmental agencies, and/
or private developers in some feasible combinative arrangements. The
overall cost of the projects is estimated at RM1.65 billion (Konsortium
Malaysia 2005, pp. 45–50).
Besides, there have been some notable commercial and residential
projects undertaken by major private and/or public firms. They would
set the pace toward the fulfillment of the goal of the Central Business
District Master Plan, aiming to create a vibrant, attractive, and dynamic
downtown of Bintulu to compliment its image as a premier livable
industrial city by 2020. Among the completed or, ongoing undertak-
ings include: (a) commercial facilities—Bintulu Paragon, Times Square
mall, Commerce Square mall, Boulevard shopping mall, and Spring
shopping mall; (b) high end condominiums—Pinnacle, the Peak, DD
Palm Spring, and Billion Utama; and (c) holiday resort—Tanjung Batu
beach resort (see Sect. 7.3.2). It costs more than RM1 billion to develop
Bintulu Paragon, Pinnacle, and Tanjung Batu beach resort. The exist-
ence of the facilities gives the general public more choices to obtain
their daily necessities or to get the latest brands of goods and services.
Notes
2. See Appendix B. The greater details on CSR budgetary figures can be
found in the BDA’s yearly budget handbooks.
153

4. See the BDA Newsletters: January-March Issue, 2006, p. 20; October–
December Issue, 2003, p. 12; April–June Issue, 2008, p. 22; and
October–December Issue, 2007, p. 20; the author’s CSR interview
sources on BDA; and records data.
6. Ibid.
7. Ibid.
8. Ibid.
9. Ibid.
10. Ibid.
11. Ibid.
12. Ibid.
13. Ibid.
14. Ibid.
15. Ibid.
16. Ibid.
17. Ibid.
18. Ibid.
19. Ibid.
20. Ibid.
21. Ibid.
22. Ibid.
23. The detailed descriptions of the functions of each stakeholder manage-
ment and performance mechanism were enclosed in a separate docu-
ment for review by the publisher.
24. See “BBC interview session with BDA GM,’’ Berita BINDA (BDA
Newsletter), April–June Issue, 2011, p. 15 and “Oxford Business
Group, London & Inside Business Magazine interview GM,’’ Berita
BINDA (BDA Newsletter), April–June Issue, 2011, p. 16.
26. Ibid.
27. Ibid.
28. Ibid.
29. The full financial statements from 1979 to 2008 and their detailed dis-
cussions were enclosed in a separate document for review by the pub-
lisher.
30. See the author’s CSR interview sources on BDA.
154
L. Teck Hui
31. As per the statistics provided by the Malaysian Palm Oil Board,

Sarawak office to the author. The full statistics was enclosed in a sepa-
rate document for review by the publisher.
32. Sources confirmed by the units responsible for the project in BDA and
Nasir (2012).
33. The prediction is more prudent than the scenario provided in the

Bintulu Urban and Regional study (see WAHBA Engineering
Consultants and GHD Consultants 2006). The study predicts that the
population of Bintulu may reach 450,000 by 2020.
35. See the author’s CSR interview sources on BDA.
36. Sources provided and confirmed by the accounting personnel of BDA.
38. See Wong (2014a, b) and the website of Samalaju Property
Development, http://samalajuproperties.com/.
40. Ibid.
41. Ibid.
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8
Implications on Corporate Social
Responsibility and Corporate
Sustainability
Abstract  This chapter presents a practicing CSR model of BDA and

the implications, contributions, and limitations of this research. A CSR
routine can be a valuable resource capability if a firm is capable of using
it to create competitive advantages that further its corporate agendas.
The holistic approach to researching and analyzing, used in this study,
advances the knowledge in the areas. To lessen the critical of disadvantages
in limiting the research sample, this chapter presents also the CSR and
ethical practice commonalities between BDA and five other major city
councils. It seems that the resulting CSR and social practices do not differ
much from one council to another. The findings in this CSR research are
capable of making an analytic generalization to other major firms.
Keywords  CSR model · Competition · Holistic approach

Ethical practice · Social practice
This chapter begins with the presentation of a reflective practicing

CSR model of BDA in the light of the analyses done in Chaps. 4–7.
The model’s essential transformative capability is discussed along the
line. Then, the commonalities of the CSR model and practices between
DOI 10.1007/978-3-319-62476-1_8
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L. Teck Hui
BDA and other major city councils are highlighted before presenting
the implications, the research reliability issues, and the future research
avenues of this CSR study.
8.1 Practicing Corporate Social Responsibility

Model
Section 2.7.3, Chap. 2, enlists three of the following features for a
transformative CSR; the residual parts of the research objective stated
in Sect. 1.1.2(d), Chap. 1, needed to be investigated in this section:
2.7.3(g) The CSR initiatives capture the essences of a good strategy;
2.7.3(i) The organization has a structured, holistic practicing CSR
model conformed to the universally acceptable morality principles; and
2.7.3(l) Its CSR works and models receive validation and notable recog-
nition.
Figure 8.1 below gives a diagrammatic summary of BDA’s practicing
CSR model. The strategic intents of BDA in engaging CSR initiatives
are reflected in many of its structured development plans, put into real
actions in the organizational planning and implementation routines (see
Chaps. 4–7). There are actualizations of the vision and mission state-
ments articulated. The BDA Ordinance 1978 along with the other
regulatory frameworks (see Sect. 3.2, Chap. 3 and Sect. 7.4; Chap. 7),
that govern the legitimate existence of BDA, form the organization’s
Institutional Foundation, the basement of Fig. 8.1.
Development Agency and Municipal Services, with CSR added on,
constitute the core businesses of BDA. There have been major devel-
opments done by BDA over past 35 years to uplift the state of eco-
nomic and social status in the Bintulu region (see Chaps. 5 and 6).
BDA has been undertaking various Continuous Improvement efforts to
bring the performance of its core businesses to the next level of perfor-
mance (innovation) and to Create Value for its stakeholders. There have
also been measurements done to provide feedbacks on the major ser-
vices rendered and the development projects completed by BDA (see
Sect. 3.2, Chap. 3 and Sect. 7.4, Chap. 7).
8 Implications on Corporate Social Responsibility …
161
Strategic CSR
CSR Programs
Stakeholders’ Value Shared Value

Integration
Value Creation
Innovation and
Performance
Continuous Improvement
Development Municipal
Agency Services
Core Business
Institutional
Legitimacy
Foundation
Fig. 8.1 Bintulu Development Authority’s practicing corporate social responsi-

bility model
Having performed stewardship over its core businesses, BDA is

taking a further step by introducing several regular (led) and ad hoc
(facilitated) CSR and social programs, judged to have notable social
impacts (see Sect. 7.1, Chap. 7). Through the stakeholder engagement
mechanisms (see Sects. 7.3 and 7.4, Chap. 7), BDA interacts with its
stakeholders to create some strategic CSR programs or to embed core
organizational routines strategically with CSR perspectives that further
its corporate agendas. The core businesses along with the CSR programs
have created broader Shared Value between BDA and its stakeholders
in terms of more sustained industrialization, urbanization, investment
growth, and standard of living. In addition, BDA remains financially
viable (see Sects. 7.5–7.9, Chap. 7).
162
L. Teck Hui
In essence, the CSR elements emerge naturally from the core busi-
nesses of BDA. The CSR and social programs introduced are in accord-
ance with the fundamental institutional values, reflected in the strategic
intents and missions, as well as adopted in the strategic planning pro-
cess of BDA for positive financial and social performance. The organi-
zational inputs incorporate CSR perspectives to produce desirable
organizational outputs. Collectively, the multiple intertwining, bundled,
and/or tacit interactions, as depicted in Fig. 8.1, represent a holistic
approach to practicing CSR by BDA that capture the essences of a good
strategy, rather than a stand-alone context (see Sect. 2.7, Chap. 2). The
path-dependent and complex-practicing model allows BDA, endowed
with a special authority to generate revenue on its own, to have the
strategic flexibilities to address both its social and financial obligations
simultaneously with broader shared value created; a transformative CSR
capability.
Yes, it (Fig. 8.1) makes sense to me. BDA is an institution with two main
functions; governmental development agency and municipal services pro-
vider. Through continuous improvement efforts, we add values. We have
common value toward CSR. This CSR practicing model is quite reflect-
ing what BDA has been doing.1
8.2 Commonality in Corporate Social

Responsibility Models
Operating in a world with diverse value systems, firms would like to
consider sets of well-encompassing yet complementary CSR and ethical
practices. This section looks into the commonalities of CSR and social
practices between BDA and five major city councils, namely, Hong
Kong District Councils, Vancouver City Council, City of London
Corporation, Sydney City Council, and New York City Council. It
begins with introducing some background information of the councils.
Table 8.1 presents the commonalities in accordance with the taxono-
mies presented in Table 2.2, Chap. 2, before some evaluations on the
commonalities in relation to BDA are presented.
Table 8.1 Commonality in corporate social responsibility models
City council CSR and social practice Taxonomy of responsibility
(a) Hong Kong (i) “The Central and Western District Council ‘Meet-the- Stakeholder engagement and
District Council Public’ Scheme aims at providing channels for local ethical business practices.
residents to seek help from their District Councillors and
enhance communication between them…”7
(ii) “Activities sponsored or organized by the Central and Economic, social, environment,
Western District Council: Community Care Program in and discretionary.
Pleasant Times 2014, Community mental health services
program 2014, Physical fitness program for the commu-
nity…”8
(b) Vancouver City (i) “The City of Vancouver, including the Vancouver Park Legal, stakeholder engagement,
Council Board, is regulated under the Vancouver Charter, a pro- and ethical business practices.
vincial statute. The Charter contains the rules that govern
how the City operates, what bylaws City Council can cre-
ate, and how budgets are set…”9
(ii) “The Downtown Eastside Plan (DTES) provides a vision, Economic, social, environment,
policies, and strategies for the Downtown Eastside legal, stakeholder engagement,
that focus on ways to improve the lives of low-income shared value, and discretionary.
DTES residents and community members. The plan was
developed in partnership with the DTES Neighborhood
Council, Building Community Society, and the Planning
Committee. Through each phase of the planning
process, there was a range of community engagement
opportunities…”10
(continued)
163
(c) The City of London (i) “The London city is the world leader in international Economic, social, environment,
Corporation finance and business services and the City Corporation legal, stakeholder engagement,
164
plays a key role in helping sustain and promote this posi- shared value, ethical business
tion […]. As a planning authority we help shape the City practices, and discretionary.
and its unique environment. We look for cutting edge
L. Teck Hui
design in new buildings while protecting our historic and

contemporary much loved architecture…”11
(ii) “The City of London Corporation is implementing a wide Economic, social, stakeholder
range of measures to reduce levels of local pollution. We engagement, and environment.
are also asking businesses and residents to take simple
steps to help to improve the air we all breathe…”12
(d) Sydney City (i) “In 2007, we asked residents and businesses what Economic, social, environment,
Council they wanted to see happen over the next 20 years and legal, stakeholder engagement,
beyond. The result is a collective vision for Sydney’s shared value, ethical business
future development called Sustainable Sydney 2030, practices, and discretionary.
which will make Sydney a green, global and connected
city […]. It is also about fostering Sydney’s economy,
society and culture into our plans…”13
(ii) “More than $100 billion is generated every year within Economic, social, legal,
the City of Sydney’s local area, which represents over stakeholder engagement,
7% of Australia’s economy […]. The City recognizes the and shared value.
unique economic importance of our area and has devel-
oped a 10 year strategy to strengthen the economy and
support business. The strategy identifies key industries
that we will be working with to capitalize on existing
strengths…”14
(continued)
(e) New York City (i) The council has the following committees to look after Economic, social, environment,
Council various governmental and municipal issues pertaining to legal, stakeholder engagement,
the New York City: legislation; aging or senior citizens; shared value, ethical business
civil rights; civil service and labor; community develop- practices, and discretionary.
ment (poverty alleviation); consumer affair, contracts
(procurement); cultural affairs; economic development;
education; environmental protection; finance; fire and
criminal justice; general welfare; government opera-
tions; health; higher education; housing and buildings;
immigration; juvenile justice; land use; mental health;
parks; oversight and investigations; public housing; public
safety; recovery and resiliency; rules, privileges, and elec-
tions; sanitation; small business; standards and ethics;
state and federal legislation; technology; transportation;
veterans; waterfronts; women’s issues; youth services; and
subcommittees.15
165
166
L. Teck Hui
(a) Hong Kong District Councils. The Hong Kong District Councils
are the local councils for the 18 districts of Hong Kong under the
supervision of Home Affairs Department. The District Councils
play a pivotal role in the development of district administration2;
(b) Vancouver City Council. Consistently ranked as one of the world
most livable cities, Vancouver, Canada, is governed by the
Vancouver Charter. Vancouver City Council, made up of the mayor
and 10 councillors, is the governing body of the city3;
(c) The City of London Corporation. For safety or economic reasons,
London has been a focus for immigration for centuries. It is the
leading political, economic, and cultural city in the world. The
skyscrapers in the city are principally used by the financial sector.
Greater London includes the London city and 32 London boroughs.
The City of London Corporation is the municipal governing body
of London4;
(d) The City of Sydney. It is the local government authority responsible
for the central business district of Sydney and more than 30 suburbs
within its boundaries5; and
(e) The New York City Council. It consists of 51 members from 51
council districts throughout the five boroughs, namely, Manhattan,
Brooklyn, Queens, the Bronx, and Staten Island. The New York
City Charter is the law governing the operation of the New York
City Council.6
Analyzed from the official websites of the five city councils, the related
CSR and social practices selected on a random basis are presented as
Table 8.1.
The five city councils above are the focal of economic, finance, social,
culture, public policies, green strategies, technological innovation, edu-
cation, e-commerce, etc. in the world. They have experienced centuries-
long developments while remaining viable. The missions and functions
of BDA, as a governmental development agency and a city council, do
not differ much from the five city councils. That said, the core munici-
pal routines and the resulting CSR and social practices, as analyzed
above, do not differ much from one council to another. The constructs
and theoretical foundations (see Chap. 2) used in this CSR research,
167
as reflected in the analyses and results discussion in Chaps. 4–7, can,

therefore, be capable of making an analytic generalization to other gov-
ernmental development agencies and local governments.
8.3 Strategic Implications

8.3.1 Theory and Managerial Implications
This research amplifies the existing CSR theory through addressing the
stated research aim and objectives. Its findings also conjure up the link-
ages between the resource-based view theory and the CSR perspectives.
First, a CSR routine can be a valuable resource capability if a firm is
capable of using it to create competitive advantages or shared values that
further its corporate agendas. Organizational routines are repetitive and
recognizable patterns of interdependent actions carried out by multi-
ple actors which have the power to coordinate and control the complex
organizational activities, as the routines enable the consistent interac-
tions of the actors (Feldman and Pentland 2003; Becker 2004). The firms
either abandon or change the least efficient and effective routines in order
to survive in the long run (Nelson and Winter 1982; Winter 1987). As
such, auxiliary CSR and social programs created in the absence of solid
organizational resource capabilities will not be sustainable.
The discovery of huge oil and gas resources triggered the economic
existence of BDA (Friedman 1970). There are pertaining regulatory
frameworks that govern the legitimate existence of BDA to discharge
satisfactorily the organization’s statutory roles in an ethical matter. As
a public authority, everything it does cause it to interact with its stake-
holders. CSR elements, as such, are tightly embedded in every organiza-
tional routine of BDA. The organization generates responsible financial
returns without monopolizing the markets through its unique posi-
tion. The net assets value growth on average is about 10% per annum
from 1979 to 2012. From 2003 to 2012, BDA had spent almost all
the municipal income, such as rates and license fees received from the
general public, through extensive township beautification efforts with
CSR added on, in making Bintulu more livable. This is line with the
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L. Teck Hui
assertions that the sound financial position is fundamental to discharg-

ing other corporate responsibilities (Caroll 1991). Apart from adopting
CSR elements in strategic intents and daily routines, the analyses also
show that BDA integrates them in regular social programs and reward
mechanisms as an integral part of its strategic planning process to create
shared values. The CSR routines can be seen as a source of value to the
organization.
Second, the author argues that CSR routine can be a strategic asset
with managerial value. Routines are embedded in the structures of an
organization, and are specific to the context (Chatterjee 2003). The
resource-based view argues that for the routines to be valuable, they
may be inelastic in supply or rare, i.e., possessed by few (Dierickx and
Cool 1989; Barney 1995). They shall be the combination of a series of
compounded assets difficult to imitate (Schendel 1994), regarded as a
high-level collection of routines for producing significant outputs of a
particular type (Winter 2000, 2003). The most efficient and effective
routines create values for the firms. The collective, path-dependent prac-
ticing CSR model (see Fig. 8.1) highlights this. It captures the essences
of a good strategy, and shares the collective transformative characteris-
tics as presented in Sect. 2.7.3, Chap. 2.
From a strategic perspective, formulating an effective CSR strat-
egy requires matching neatly the organizational internal factors against
external forces. A stand-alone CSR program may be imitable, and has
limited social impacts. A collection of complementary CSR programs
embedded in core organizational routines implanted with notable tri-
ple bottom line impacts, which develop over time, may be unique to a
firm (Lindorff et al. 2012; Porter and Kramer 2006, 2011). BDA incor-
porates CSR perspectives in its strategic planning process. Through its
stakeholder engagement mechanisms, the organization interacts with
the stakeholders to address issues of concern. As such, it is able to seek
actively to benefit them as a result of its core business routines tightly
embedded with CSR agendas and regular CSR programs, which con-
stitute an integrated bundle of plans that maximizes both economic
and social value. This is the essence of a transformative CSR or strategic
CSR 2.0 which matches organizational objectives to the market needs
of the firms for sustained value creation.
169
8.3.2 Empirical Contribution
Lacking of comprehensive qualitative narratives on a holistic CSR pro-

cess may have eroded the actual values of CSR in contributing to an
organization’s sustained value creation capability. This case research
examines the adoption of CSR in the strategic intents and missions,
strategic planning processes, as well as performance management of a
major corporatized governmental agency, BDA, in a holistic approach.
As the area is little known in the research sphere, the analyses and find-
ings presented could make new knowledge and empirical contributions
in the areas. Also, BDA itself is unique as it assumes multiple roles such
as governmental agency, city council, and business entity simultane-
ously. The unlocking of the restricted governmental datasets marks a
vital step toward transparency practices by an emerging market’s pub-
lic authority in the globalized world. The myths of its CSR practices,
organizational decisions, and core routines are made known through the
case study undertaken.
8.3.3 Reliability and Validity
For a case study, a logical prerequisite for the external validity is the
internal and construct validity (Gibbert et al. 2008). The author took
the following measures to improve the methodological reliability of this
research: (a) prolonged the process of data gathering on sites to ensure
findings accuracy; (b) conducted member checks by maintaining an
active corroboration on the interpretation of data with those in BDA
who provided the data; (c) collected referential materials by making use
of extensive records data to support research findings; and (d) engaged
in peer consultation, i.e., colleagues, in-company executives, and exter-
nal reviewers were consulted in order to establish validity through
pooled judgments prior to composing the final version of this CSR
intellectual discourse.
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L. Teck Hui
8.4 Limitation and Future Research

Producing high-quality business policies and competitive CSR agendas
compel the policy makers in public and private sectors to have strategic
investments in the related premises, international linkages, and research
and development capabilities. In reflecting on the rich opportunities for
advancing the understanding on the vibrant CSR research and practices,
several future research and practice avenues are proposed, as below, to
expand the current single-case research: (a) conducting a stakeholder
survey to measure the perceptions of BDA’s major stakeholders on the
organization’s financial and social performance. Bias is a major threat to
the internal validity of a scientific research. The survey could reduce ret-
rospective bias on the BDA’s performance in the areas, thus, providing
valuable inputs to the policymaking processes of BDA; (b) conducting
a qualitative research to compare and contrast how major city councils
organize and strategize organizational resource capabilities to meet the
demands of society and the challenges of globalized competitive market.
This could conjure up more replication studies to make the underlying
theory and practices used more mature and valid; and (c) conducting a
major quantitative survey on all local authorities in Malaysia to confirm
and disconfirm their salient CSR practices as well as high performing
properties associated with such practices.
Notes
2. See Hong Kong District Councils, http://www.districtcouncils.gov.hk/
index.html.
3. See Vancouver City Council, http://vancouver.ca/your-government/
vancouver-city-council.aspx.
4. See the City of London Corporation, https://www.cityoflondon.gov.
uk/Pages/default.aspx.
5. See the City of Sydney, http://www.cityofsydney.nsw.gov.au/.
6. See New York City Council, http://council.nyc.gov/html/home/home.
shtml.
171

central/en/public.html.
central/en/activities_list.html.
9. See Vancouver City Council, http://vancouver.ca/your-government/
the-vancouver-charter.aspx.
10. See Vancouver City Council, http://vancouver.ca/home-property-devel-
opment/dtes-local-area-plan.aspx.
11. See the City of London Corporation, http://www.cityoflondon.gov.uk/
about-the-city/what-we-do/Pages/keeping-the-city-running.aspx.
12. See the City of London Corporation, http://www.cityoflondon.gov.uk/
business/environmental-health/environmental-protection/air-quality/
Pages/Air-Quality.aspx.
13. See the City of Sydney, http://www.cityofsydney.nsw.gov.au/about-us.
14. See the City of Sydney, http://www.cityofsydney.nsw.gov.au/business/
business-support/business-in-your-sector.
15. See the New York City Council, http://council.nyc.gov/html/commit-
tees/oversight.shtml.
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9
Concluding Remarks
Abstract  This chapter concludes that by fulfilling an obligation to

make core organizational decisions with CSR added on, a firm can
demonstrate social responsibility values that benefit its stakeholders
apart from fulfilling its economic self-interests for achieving corpo-
rate sustainability. The large oil and gas reserves and richly resource-
based industries might have fueled the first 30 years of development
in Bintulu. In 2008, the region is embarking on the next 30 years of
growth with the launching of a renewable energy industrial park,
Samalaju Industrial Park, which has attracted confirmed investments
worth over Ringgit Malaysia (RM) 30 billion. This is a strategic indus-
trial diversification which brings additional sources of revenue to the
economy of Bintulu region.
Keywords  Decision-making · CSR · Corporate sustainability

Growth · Development · Emerging economy
The large oil and gas reserves and richly resource-based industries might
have fueled the first 30 years of developments that have transformed
Bintulu from a coastal settlement with a population of 5000 to over
DOI 10.1007/978-3-319-62476-1_9
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L. Teck Hui
250,000 now. Bintulu is embarking on the next 30 years of growth

with the launching of the SCORE project in 2008. This will be another
period of accelerated industrial development with capital-intensive pro-
jects harnessing the hydropower of Bakun and Murum dams, the facili-
ties of Bintulu deepwater port and Samalaju port, as well as the large
tracts of land.
Bintulu has gone through a period of rapid growth that is set to continue
until at least 2014. Much of this growth has been a result of development
throughout Sarawak and the SCORE project. Fast economic growth
over the next few years will enable and encourage Bintulu to transform
from being a major industrial center, with its core strategic advantages in
oil and gas, into a diverse business center. This transition is being aided
and driven by the major investment projects in the SCORE project.
These projects are creating a number of business opportunities across the
state, including Bintulu, which will attract local and international inves-
tors […]. A clear example of this is the new deepwater port that will be
constructed in Samalaju. This port will be dedicated to heavy industries
serving the aluminum and manganese smelting plants, and other such
industries located at the Samalaju Industrial Park. The port area will be
only three kilometer from the sea, making it extremely efficient and ena-
bling it to provide the best possible service to the sector. Looking ahead,
the economic development that is projected for the area is capable of pro-
viding 30,000 jobs to locals, of which 50% are for skilled workers. This
will encourage further prosperity, growth and business opportunities,
while also moving Bintulu in the direction of becoming a high-income
society.1
Besides, the RM10 billion Petronas Train 9 project also creates tre-
mendous momentum for fuelling further economic growth in Bintulu
(Tan 2013). These new projects would propel Bintulu population to
well over 350,000 by 2020, and drive Bintulu to become a high-income
society. The CSR obligations of BDA would grow in tandem with these
developments. In 2011, Sarawak is the state attracted the highest FDIs
in Malaysia with RM8.17 billion. More than 90% of the FDIs went to
Bintulu (Damodaran 2012; Hillson 2012). In 2013, Sarawak received
11% or RM6.8 billion of the total FDIs in Malaysia. It remained in the
9 Concluding Remarks
175
top three positions for that year (The Borneo Post 2014). Up to the first
quarter of 2014, Sarawak became again the state in Malaysia receiving
the highest FDIs, i.e., RM6.8 billion (Salena 2014).
People cling to their principles for many different reasons. What
constitutes a firm’s ideal CSR domain could be a subjective matter.
Corporate mishaps show that pursuing relentlessly business profits with-
out conscience is dangerous. Competitive advantage is much more than
finding a favorable strategic position to compete against rivalries. This
CSR research aims to examine whether a firm’s CSR and ethical practices
really matter for it to fulfill economic self-interests and societal expecta-
tions. In this respect, the author reviewed related theoretical foundations
for the research aim and objectives. A comprehensive and representa-
tive CSR definition was adopted. The contextual settings of the research
as well as the trends in and issues on practicing CSR in Malaysia were
also examined. Qualitative methods were used to collect primary and
secondary data to reduce retrospective bias. Then, the author examined
the underlying holistic strategic intents, CSR planning, implementation,
and control processes, as well as structured plans that have existed in
BDA to assist the organization in addressing both economic and social
obligations. The findings and a practicing CSR model, as presented in
Chaps. 4–8, address the research aim and objectives established. It seems
that the firm’s distinctive capability in defining, integrating, executing,
and leveraging core organizational routines, with CSR, added on, for
attaining desirable financial and social performance would constitute
a strategic asset; the central research aim of this thesis. This assertion is
capable of generalization to other major firms and public.
Being more socially responsible strategically may not constitute
an organizational constraint for rent generation and appropriation.
Constraints to practice CSR often occur when not every stakeholder of
an organization considers CSR as something of value. To make Bintulu
better, CSR shall be the business of everybody, not just BDA. Being a
public authority, BDA embeds CSR elements in its core and ad hoc
organizational routines. This is beyond the explicit statutory obliga-
tions. BDA attempts to proclaim the good images of the government by
relating itself to the societal needs, attracting investments, and improv-
ing the standard of living of people.2
176
L. Teck Hui
By fulfilling an obligation to make core organizational decisions

with CSR added on, this CSR research shows that a firm can dem-
onstrate social responsibility values that benefit its own organization
and stakeholders. This has positive spin-off effects. In the longer run,
the organization benefits from more FDIs that strengthen its finan-
cial positions. With the healthy financial positions, it can better realize
social obligations by introducing more regular CSR programs, develop-
ment projects, public goods and services to promote social causes so as
to benefit its stakeholders further. Essentially, the organization adopts
CSR perspectives in its core business routines. The strategic planning
and decision-making processes that address the ethical or social com-
ponents of strategies reveal what the organization values in fulfilling its
statutory obligations as well as social agendas. This is transformative as
CSR becomes part of the organizational core resource capabilities; the
organization’s highest level of decision-making and external relationship
reflects consistently its continuous commitment to practice CSR as a
way of life to attain corporate sustainability.
Notes
1. This is an interview quote from the Oxford Business Group’s (2011)
interview with the general manager of BDA.
References
Straits Times. Retrieved from http://www.nst.com.my/top-news/highest-ever-
fdi-for-malaysia-1.50269.
Oxford Business Group. (2011). Building on success: OBG talks to general manager.
Retrieved from http://www.oxfordbusinessgroup.com/news/building-success-obg-
talksmohidin-ishak-general-manager-bintulu-development-authority.
9 Concluding Remarks
177
Salena, P. (2014, April 28). Sarawak registers highest foreign investment

this year. The Borneo Post. Retrieved from http://www.theborneopost.
com/2014/04/28/sarawak-registers-highest-foreign-investment-this-year-
awang-tengah/.
Tan, G. (2013, June 21). Work on LNG Train 9 on schedule. The Borneo Post.
Retrieved from http://www.theborneopost.com/2013/06/21/work-on-lng-
train-9-on-schedule/#ixzz2Zb6NECFa.
The Borneo Post. (2014, April 11). Sarawak received over 11 pct of 2013
FDI. Retrieved from http://www.theborneopost.com/2014/04/11/sarawak-
received-over-11-pct-of-2013-fdi/.
Appendix A: Research Methodology
This appendix begins with the descriptions on the research and data col-
lection methods used in this qualitative case research. The reasons for
the sample selection are then discussed, followed by the disclosure on
the detailed data collection processes.
Research and Data Collection Methods
This research studies in detail the multifaceted and interactive practic-

ing CSR process of BDA, as stated in the interrelated research objec-
tives in Sect. 1.1.2, Chap. 1. There is little theory and empirical research
relating to the adoption of CSR in major firms’ strategic planning pro-
cesses as a holistic practicing CSR model. Cross-sectional quantitative
data can fail to capture the richness and complexity of the firms’ plan-
ning process (Boyd and Reuning-Elliott 1998). Thus, this qualitative
case research can be adopted in preference to a formal hypothesis testing
as it amplifies what is not widely known by gathering and analyzing a
wide range of contextual information about a subject from a combina-
tion of qualitative methods, i.e., the use of triangulation in confirming
© The Editor(s) (if applicable) and the Author(s) 2018 179

DOI 10.1007/978-3-319-62476-1
180
of apparent findings for the conclusion drawn. Besides, it also improves

the validity of theories by bridging the gap between the abstract research
and the concrete practice (Bettis et al. 2014; Yin 1994).
This case research incorporates several of the following data collection
methods:
(a)
Semi-structured interview with audio tape recording and observa-
tion. The semi-structured interview covers three separate ques-
tionnaires, A, B, and C, designed in line with the literature
foundations reviewed in Chap. 2. The Interview Questionnaire
Set C is based on the work of Laplume et al. (2008), which
guides the interviewees’ responses for Sect. 7.3, Chap. 7 on the
three stakeholder management cases. Because of word limits,
Interview Questionnaire Sets A, B, and C as well as the detailed
lists of BDA employees interviewed are enclosed in a separate
document for review by reviewers;
(b)
Secondary data analysis. Some typical internal and external
archival records available that the author reads and refers so as
to reduce retrospective bias are, for instance, speeches and offi-
cial statements from the senior management of BDA, corporate
policies, staff, and budget handbooks, projects related docu-
mentations and reviews, legal related documents, annual finan-
cial reports, official newsletters, press statements, departmental
operations related documents, minutes, master development
plans, survey and customer reports, newspapers, industrial and
market outlooks, and seminar papers;
(c)
Website and online information analyses. Major firms disclose
more information about their multifaceted corporate per-
formance online in response to regulatory and stakeholder
demands (Jose and Lee 2007; Mann et al. 2013). In this
respect, the author also conducts extensive content analy-
ses on those websites related to this CSR study such as BDA,
Hong Kong District Councils, VancouverCity Council,London
Councils,Sydney City Council, and NewYork City Council, as
presented in Sect. 8.2, Chap. 8, to obtain crucial information
about the commonalities of their CSR and social practices; and
181
(d)
Three stakeholder management cases. This case research also con-
ducts three representative stakeholder management cases con-
cerning BDA, aiming to examine and understand the research
objective stated in Section 1.1.2 (b), Chap. 1.
In term of sample selection, BDA is the unit of analysis.

Governmental datasets are often restrictive, yet significant enough in
shaping the well-being of a nation through their dissemination (Hood
and Margetts 2007). The release of these datasets, unleashes the best
performance potentials that they can present, and marks a significant
step toward the governmental transparency.
BDA is a corporatized governmental entity, not insulated from
any form of free market competition. In fact, it has to compete rigor-
ously with other city councils and governmental agencies to attract
investments, migrants, tourists, and other meaningful undertakings to
theBintulu region. Given its unique position, the organization’s mana-
gerial decisions will affect many aspects of the well-being of business
communities, societies, and ecologies; stretching beyond a nation’s geo-
graphical boundaries. The conventional theory and managerial foun-
dations, as reviewed in Chap. 2, as such, shall be applicable to BDA.
Using BDA as the unit of analysis shall generate insightful, valuable,
and CSR datasets with high national impacts and global relevance.
Data Collection Process
The management of BDA issued a letter of support in 2012 to pro-

vide research collaboration on this CSR research. Under the spirit of
the said letter, the management of BDA gave official permission on
the following duly implemented data collection steps. The author
selected, in consultation with the management of BDA, out of about
800 BDA employees, 170 representative interviewees (Group A) and
three interviewees (Group B) for interviews at the premises of BDA,
namely, its headquarters office and municipal services center. The
management of BDA endorsed the interviewees selected. Group A
182
consists of eight senior managers, 26 managers, and 21 operational

staffs. They completed the interviews. On the other hand, one assistant
general manager, one assistant general manager cum deputy general
manager, and one general manager are in Group B. There are two sets of
interview questionnaires designed. Interview Questionnaire Set A is for
Group A. It is more oriented toward the individual departmental focus
and the operational aspects of CSR taking place in BDA. Interview
Questionnaire Set B is for Group B interviewees who can speak with
authority the strategic aspects of CSR in BDA. The management of
BDA reviewed and approved the distribution of the questionnaires.
To kickoff the data collection, the management of BDA held an offi-
cial briefing to Group A and Group B at the BDA auditorium to state
clearly the rationales, objectives, and performance targets of this CSR
research, as well as the roles and responsibilities of those selected for
the interview. Over a period of approximately four months, stretching
between 2012 and 2013, the tape-recording semi-structured interviews
were completed. They were, then, transcribed into interview texts. One
interview typically took 30–90 minutes to complete. For the Interview
Questionnaire Set B, it took about three hours per interview. The exist-
ence of registry, research, and statistics units indicate that crucial sec-
ondary data has been reasonably well kept at the organization’s premises.
Between June 2014 and July 2014, the author also carried out two
further tape-recording semi-structured interviews on the Interview
Questionnaire Set C concerning the three important stakeholder man-
agement cases. The two representative interviewees from BDA were the
deputy general manager and the assistant general manager. On average,
an interview took about 60 minutes. The tape-recorded interviews were
transcribed into texts. Besides, the author also carried out additional
field works at several other locations such as State Health Department,
Malaysia Palm Oil Board, Department of Statistics, and Department
of Environment for collecting some vital statistics on Sarawak and
Bintulu, useful in advancing certain arguments in this thesis.
Appendix B: Development and municipal
expenditures
Expenditure Up to 2010 2011 2012 Total

Actual Actual Revised RM’000
RM’000 RM’000 RM’000
Industrial estate development 31,481 – 3,610 35,091
Kidurong industrial estate I 36,806 4,214 27,051 68,071
Kidurong industrial estate II
Infrastructural development 691 – 1,524 2,215
Improvement to Bintulu downtown 277 – 635 912
road – – 1,650 1,650
Sibiyu road – – 500 500
Kambar Bubin road, drainage, etc. – – 400 400
Upgrading junction Rakawi Yusuf
road
Drainage system along Sibiyu road
Kidurong township 95 4,165 1,000 5,260
Rehabilitation of Tun Openg road – – 5,000 5,000
Construction of Tun Openg road – – 1,000 1,000
Rehabilitation of main road to Sg – – 2,500 2,500
Plan
Construction of second carriageway
(continued)

DOI 10.1007/978-3-319-62476-1
184
Appendix B: Development and municipal expenditures
(continued)
RM’000 RM’000 RM’000
Industrial estate development 3,050 78 – 3,128
Rehabilitation of roads 339 – 2,000 2,339
Kemena industrial estate 1,435 – 3,000 4,435
Jepak industrial estate 1 2,744 3,000 5,747
Linking coastal road from Kemena
industrial estate to Bintulu port
Other infrastructural development – – 500 500
Roads and drainages 242 90 500 500
Street lightings – – 3,000 3,000
Proposed Bintulu Museum road
Town planning and development 71,000 – – 71,000
Bintulu waterfront promenade – – 1,000 1,000
Overhead bridge Assyakirin – 3,996 704 4,700
Bintulu central boulevard phase I – – 500 500
Tanjung Batu beach beautification 16,630 – – 16,630
Land acquisition—Heritage Village – 6,285 – 6,285
Land acquisition—Bintulu Museum – 6,138 74,200 80,338
General allocation for land acquisi-
tion
Waste management project – – 100 100
Earth filling of old oxidation pond – – 2,000 2,000
Sewer trunk
Special project – – 980 980
Improvement to BDA quarters and – – 5,360 5,360
office – 495 550 1,045
Development of 53 units houses at 616 52 350 1,018
the Jepak Permai Village scheme – – 1,000 1,000
Video surveillance at public places – – 500 500
Upgrading Bintulu golf club – – 612 612
Improvement to Sepadok Integrated 1,291 – – 1,291
Farm
Ferry ramp at Sebauh
Escalators at the Bintulu Civic Center
Pandan Service Center
Municipal project 185 13 400 598
Sport facilities 22 – 100 122
Assembly hall at Sg Plan resettlement – 14 786 800
Library and public facilities 418 147 1,748 2,313
Other public and recreation facilities
(continued)
Appendix B: Development and municipal expenditures
185
(continued)
RM’000 RM’000 RM’000
Town landscaping and beautification 801 – 750 1,551
Roads landscaping 724 882 900 2,506
Recreational parks – – 3,000 3,000
Landscaping foothpath 124 – 1,140 1,264
Other landscaping projects 184 – 900 1,084
Zoo and botanical garden
Land premium paid 16,017 – 590 16,607
Kidurong light industrial estate 61,109 – 2,674 63,783
Kemena industrial estate 32,141 – 9,546 41,687
Jepak industrial estate 77,084 – 21,747 98,831
Kidurong industrial estate
Source BDA budget 2013
References
Bettis, R. A., Gambardella, A., Helfat, C., & Mitchell, W. (2014).
Introduction: Multiple on-ramps to the qualitative review. Strategic
Boyd, B. K., & Reuning-Elliott, E. (1998). A measurement model of strategic
planning. Strategic Management Journal, 20(10), 889–914.
Hood, C. C., & Margetts, H. Z. (2007). The tools of government in the digital
age (2nd ed.). Basingstoke: Palgrave Macmillan.
Jose, A., & Lee, S. M. (2007). Environmental reporting of global corporations:
A content analysis based on website disclosures. Journal of Business Ethics,
72(4), 307–321.
Laplume, A.O., Sonpar, K., & Litz, R.A. (2008). Stakeholder theory:
Reviewing theory that moves us. Journal of Management, 34(6), 1152–
1189.
Mann, M., Byun, S. E., Kim, H. J., & Hoggle, K. (2013). Assessment of lead-
ing apparel specialty retailers’ CSR practices as communicated on corporate
websites: Problems and opportunities. Journal of Business Ethics, 122(4),
599–622.
Yin, R. K. (1994). Case study research: Design and methods (2nd ed.). Thousand
Oaks: Sage.
Name Index
A 126, 129, 132, 135, 137,

Arthur Erickson Associates 61 140–142, 144, 146–151, 154,
ASEAN 50, 51, 76, 77, 79, 82, 97, 161, 174
124, 135, 144 Bintulu central business district 147,
ASEAN urea/ammonia plant 78, 79, 151, 152
136 Bintulu deepwater port 71, 74–76,
Asian economic crisis 82, 96, 117, 78, 82, 91, 101, 143, 144, 174
120, 125 Bintulu Development Authority 5,
Australia Development Assistance 50, 53, 55, 110, 113, 132, 161
Bureau 56 Bintulu Regional Center Study 56,
Azenertel-Kanuli 117, 118, 120, 124 64, 65, 71, 75, 78, 93, 115,
119, 123
Bintulu Urban and Regional Study
B
57, 67, 70, 72, 82, 86, 115,
Bakun hydroelectric dam 51, 70, 79,
151, 154
81, 82, 102, 146
British 50, 51, 131
BDA Ordinance 52, 54, 56, 59, 65,
British Broadcasting Corporation
112, 129, 136, 160
(BBC) 131
Bintulu 5, 6, 8–10, 49–53, 55–61,
64–68, 70, 71, 74, 76, 82, 84,
90–93, 96, 97, 99, 100, 109, C
111, 112, 114, 119, 121–124, Cahya Mata Sarawak Bhd 119
DOI 10.1007/978-3-319-62476-1
188
Name Index
Chinese 51, 110, 118 Malaysian Borneo 8, 50

Christians 15 Malaysian Liquefied Natural Gas
The City of London Corporation Plant 74, 77–79, 82, 91, 135
164, 166, 171 Malaysian Palm Oil Board 142, 154
Miri 51, 66, 76, 132, 133, 141–144,
146
D
Murum hydroelectric dam 67, 123
Department of Environment 69, 150
Department of Statistics 138
N
New York Council 6, 162, 165, 170
E
European Commission 16
Euro-zone crisis 28, 117 O
Oxford Business Group 131, 153, 176
G
Global Competitiveness Index 8 P
The Global Reporting Initiatives 4 Pak-Poy & Associates Pty. Ltd 56
Palm oil industrial cluster 74, 86
Performance control 117, 127, 132
H
Petronas Liquefied Natural Gas
Hijjas Kasturi Associates Sdn Bhd 61
Complex 135
Hong Kong District Councils 6, 162,
Petronas Train 9 85, 135, 144, 174
170
Press Metal Bhd 145
J
R
James Brooke 50
RECODA 6
Ringgit Malaysia 10
K Rio Tinto 117, 119, 123, 124
Konsortium Malaysia 72, 151, 152
Kuala Lumpur 75, 125, 151
S
Kuching 9, 50, 66, 76, 93, 124, 132,
Samalaju eco-friendly township 149
133, 139, 143, 144, 150
Samalaju Industrial Park 10, 51, 59,
67, 74, 86, 119, 123, 125, 126,
M 132, 144–146, 149, 150, 174
Malaysia 5–7, 16–18, 50, 52, 67, 68, Samalaju Port 149, 150, 174
70, 76, 81, 97, 104, 116, 135, Sarawak 6, 8, 9, 50, 51, 55–57, 59,
138, 141, 146, 149, 170, 174 61, 66, 68–70, 76, 77, 79, 82,
Name Index
189
84, 92, 95, 97, 104, 109, 111, Tatau 50, 57, 76, 78, 81, 96–98, 100,
118, 119, 121, 123, 125, 132, 101, 144
133, 135, 138, 139, 141–146, Transparency International 19
149, 150, 174 Trienkens 121
SCORE 51, 59, 61, 70, 74, 84–86,
102, 144, 146, 149, 151, 174
V
Sebauh 50, 57, 78, 84, 95, 97, 101,
Vancouver City Council 6, 162, 163,
114, 144
170
Shell Middle Distillate Synthesis
plant 51, 71, 79–81, 96, 113,
135, 144 W
Shin Yang group 118, 120, 122, 125 WAHBA Engineering Consultants
Sibu 51, 66, 76, 77, 132, 133, and GHD Consultants 57, 60,
142–144, 146 61, 71, 154
Subprime crisis 117 White Raja Dynasty 50
Subsidiaries 17, 56, 75, 87 World Economic Forum 6, 19
Sydney City Council 6, 162, 164
T
Tanjung Batu Coastal Reserve 58, 69,
94, 120, 124, 151
Subject Index
A commonality 14, 162, 163

Annual budget meeting 112, 115, definition 14
116, 133 disclosure 16, 17
program 5, 6, 9, 33, 35, 65,
B
108–111, 116, 134, 140, 146,
Business environment 116 161, 167, 168, 176
trend 7, 14, 19, 175
Corporate sustainability 3, 6, 10, 29,
C 176
Capability 3, 5, 7, 21, 30–33, 124,
159, 162, 169, 175
D
Causally ambiguous 30, 34, 123
City council 6, 7, 10, 54, 60, 66, 69, Data collection 10
92–94, 100, 162–164, 166, 170 Disparate value system 162
Commercial center 56, 75, 78, 85,
98, 100 E
Competitive advantage 4, 25, 31, 32, Economic self-interest 5, 9, 16, 33,
175 127, 137, 175
Core routine 6 Embeddedness 8, 74, 108, 137
Corporate social responsibility Energy town 6

DOI 10.1007/978-3-319-62476-1
192
Subject Index
F Low cost housing 113

Federal government 75, 82, 83, 111,
149
M
Financial strengths 9, 108, 112, 140
Five competitive forces 29, 30 Mission statement 25, 70, 91
Foreign direct investment 69 Municipal amenities 91, 92, 98
Friendly industrial city 57, 58, 60, Municipal finance 91
64, 68–70, 82, 86, 91, 104, Municipal services 5, 8, 52, 53, 59,
139, 140, 146, 150, 151 64, 74, 75, 90, 91, 93, 94, 97,
98, 103, 112, 117, 131, 139,
160, 162
G
Governmental development agency 5,
N
8, 10, 52, 59, 74, 162, 166
Gross Domestic Product 5 Natural environment 2, 7, 28, 118,
151
Natural gas 8, 51, 52, 70, 71, 74, 75,
H 77–79, 81, 82, 96, 97, 102,
Housing estate 9, 70, 75, 79, 81, 83, 113, 134–138, 144
87, 90, 98 Net assets 167
I O
Industrial development 60, 64, 141, Oil and gas industry 135, 141
174 Organizational chart 55
Industrial estate 9, 54, 67, 68, 75–77, Organizational structure 24, 55
79, 80, 82, 86, 139, 150
Industrial organization 29, 31, 32
P
Integrating corporate social responsi-
bility 26 Palm oil industry 17, 82, 84, 141–
Interviews 69, 132 143
Investment growth 9, 141, 161 Path dependence 30, 34, 123
Performance control 117, 127, 132
Population growth 9, 76, 108, 125,
L 144, 146
Legitimate existence 32, 52, 54, 160, Public infrastructure 9, 54, 60, 65,
167 70, 75, 79, 83
Livable 58, 64, 67, 71, 91, 94, 101,
104, 151, 152, 166, 167
Q
Living standard 16, 140
Local authority 52, 54, 59, 67, 86, 90 Qualitative research method 5, 10,
Local government 6, 19, 50, 166, 167 170
Subject Index
193
Quantitative research method 6 Strategic

assets 31
corporate social responsibility 4,
R
14, 15, 22, 25–27, 31–35, 63,
Renewable energy 8, 10, 50, 51, 140
108, 112, 161, 168, 169, 175,
Research methodology 7, 179
176
Research question 4, 5
diversification 146
Resettlement scheme 94, 97, 109,
factor markets 34
114, 148
flexibility 8, 9, 33, 65, 108
Resource 2, 10, 25, 27, 29–34, 55,
intent 5, 7, 8, 14, 22, 25, 27, 28,
68, 117, 127, 129, 140, 167,
35, 63, 70
170, 173, 176
planning 4, 7, 25–27, 29, 33, 35,
based industry 8, 50, 51, 82
112, 115–117, 162, 168, 169,
based view 29–32, 34, 123, 167,
176
168
Sustainable development 2, 15
capability 9, 167
Sustained value creation 4, 5, 7, 129,
168, 169
S
Shared value 16, 24, 27, 34, 35, 126,
T
140, 161–163, 165
Top management 24, 32, 69, 115,
Social 2, 3, 6, 15, 17, 21, 25, 27, 32,
116, 133
34, 56, 57, 59, 60, 64, 65, 69,
TQM 59, 131
70, 78, 89, 92, 95, 98, 100,
Transformative Corporate Social
108–111, 113–115, 123, 127,
Responsibility 32
129, 136, 138, 140, 144, 146,
Triple bottom line 4, 8, 9, 73, 74,
160–164, 166, 168, 175, 176
108, 137, 140, 168
Social complexity 30, 34
Social media 64, 131
Societal expectation 5, 33, 127, 137, U
175 Universal principles 2
Stakeholder management 5, 7, 9, Urbanization 9, 67, 74, 89, 97, 108,
19–22, 26, 108, 117–119, 123, 109, 112, 151, 161
124, 126, 127, 153
approaches 118, 123, 124, 126
V
capability 20
Vision statement 71, 150
mechanism 14
Stakeholder theory 19, 20, 28, 123
State government 19, 50, 51, 56, 59,
75, 77, 79, 95, 110, 111, 118,
146, 147

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ISBN 978-3-319-62475-4 ISBN 978-3-319-62476-1 (eBook)

Library of Congress Control Number: 2017948254

© The Editor(s) (if applicable) and the Author(s) 2018

Printed on acid-free paper

This Palgrave Macmillan imprint is published by Springer Nature

I felt deeply honored in 2012 when Bintulu Development Authority

aspects concerning this research. I am also grateful to Department of

2 Theoretical and Managerial Framework 13

4 Integrating Corporate Social Responsibility

5 Integrating Corporate Social Responsibility

6 Integrating Corporate Social Responsibility

7 Transformative Corporate Social Responsibility 107

8 Implications on Corporate Social Responsibility

9 Concluding Remarks 173

Appendix A: Research Methodology 179

Appendix B: Development and municipal expenditures 183

Name Index 187

Subject Index 191

ADAB Australian Development Assistance Bureau

Fig. 3.1 Bintulu Development Authority’s headquarters in Bintulu 53

Table 2.1 Corporate social responsibility trend and development

Table 7.3 Three stakeholder management cases—background

Abstract This chapter presents the introductory contexts, purpose

Keywords CSR · Stakeholders · Holistic · Definitions · Value-creation

© The Author(s) 2018 1

trading, and misuse of entrusted power for personal gains, as reflected

1.1 Purpose Statement, Aim, and Objectives

Milton Friedman (1970), a recipient of the 1976 Nobel Memorial Prize

firms ought to attain sustainability through balancing the complex rela-

provide a more complete comprehension on the existing CSR phenom-

1.1.2 Research Aim and Objectives

(a) the strategic intent and mission of a major corporatized govern-

1.2 Chapter Outline

with the dimensions of CSR planning and implementation processes,

ventures in collaboration with private firms through incorporating

advances the knowledge in the areas. To lessen the critical of disadvantages

Cosans, C. (2009). Does Milton Friedman support a vigorous business ethics?

Abstract This chapter surveys the related literatures in CSR and strat-

Keywords CSR · Literature review · Definition · Malaysia

© The Author(s) 2018 13

2.1 Corporate Social Responsibility Concept

The responsibility of enterprises for their impacts on society […]. To fully

In this research, the author adopts the definition as the well-encom-

Table 2.1 Corporate social responsibility trend and development in Malaysia

2.2 Stakeholder Theory

Freeman (1984, Chap. 3) advocates a whole stakeholder approach

managers give priority to competing stakeholder claims (Agle et al.

The stakeholder approach ought to identify the multiple stake-

2.3 CSR and Ethical Business Practices

2.4 Strategic Intent and Strategic Mission

Table 2.2 Corporate social responsibility and ethical practices

externally focused vision and mission statements describe the firms’

2.5 Corporate Social Responsibility

2.5.1 Strategic Planning

A firm’s strategic planning has three core components, namely strategic

2.5.2 Integrating Corporate Social Responsibility

A firm’s corporate social responsiveness processes depend on its environ-

CSR can be a mean to evaluate the firms’ external environment in

2.6 Corporate Social Responsibility and Triple

2.7 Corporate Sustainability

2.7.1 Theories of the Firm

The industrial organization or structure-conduct-performance paradigm

Fig. 3.1 Bintulu Development Authority’s headquarters in Bintulu 53

Table 2.1 Corporate social responsibility trend and development

Table 7.3 Three stakeholder management cases—background

Abstract  This chapter presents the introductory contexts, purpose

Keywords  CSR · Stakeholders · Holistic · Definitions · Value-creation

1.1 Purpose Statement, Aim, and Objectives

1.1.2 Research Aim and Objectives

(a) the strategic intent and mission of a major corporatized govern-

1.2 Chapter Outline

Abstract  This chapter surveys the related literatures in CSR and strat-

Keywords  CSR · Literature review · Definition · Malaysia

2.1 Corporate Social Responsibility Concept

Table 2.1 Corporate social responsibility trend and development in Malaysia

2.2 Stakeholder Theory

Freeman (1984, Chap. 3) advocates a whole stakeholder approach

managers give priority to competing stakeholder claims (Agle et al.

2.3 CSR and Ethical Business Practices

2.4 Strategic Intent and Strategic Mission

Table 2.2 Corporate social responsibility and ethical practices

2.5 Corporate Social Responsibility

2.5.1 Strategic Planning

2.5.2 Integrating Corporate Social Responsibility

2.6 Corporate Social Responsibility and Triple

2.7 Corporate Sustainability

2.7.1 Theories of the Firm

2.7.2 Strategic Asset

environmental strategy (Menguc et al. 2010). Organizational resource

2.7.3 Transformative Corporate Social Responsibility

In line with the research objective stated in Sect. 1.1.2d, Chap. 1, the

Abstract  The contextual information of BDA is examined in this

Keywords  Binutulu · Natural gas · Development · Policy

3.1 The Nation, State, and City

3.2 The Development Authority cum City

3.2.1 Legitimate Existence

Fig. 3.1 Bintulu Development Authority’s headquarters in Bintulu

Fig. 3.2 Bintulu Development Authority’s municipal services center

3.2.2 Institutional Foundation

3.2.3 Organizational Structure

Fig. 3.3 Organization chart of Bintulu Development Authority. Source BDA

3.2.4 Business Subsidiary and Associate

3.2.5 The Bintulu Regional Center Study

3.2.6 The Bintulu Urban and Regional Study

3.2.7 Continuous Improvement Initiatives

3.2.7.1 Tanjung Batu Coastal Reserve Master Plan Study

3.2.8 Corporate Vision and Mission

Vision – “Bintulu…a friendly industrial city by the year 2020”

Abstract  This chapter examines the strategic intent and mission of

Keywords  Strategy · CSR · Consulting · Stakeholders · Organization

in Sect. 1.1.2(a), Chap. 1). Section 4.1 reviews in brief the histori-

4.1 A Historical Outline

Fig. 4.1 Bintulu development plan completed. Source Bintulu investment guide,

4.2 Takeoff Trajectory