Impact of CSR disclosure on profitability and firm performance of Malaysian halal food companies

Abstract The purpose of this study is to examine the impact of corporate social responsibility (CSR) disclosure on the profitability and firm performance of Halal food companies in Malaysia. Applying a quintitative method, the study utilised a dynamic GMM-based statistical technique for analysing the data from 75 public-listed Halal food companies in Malaysia from 2012 to 2021.The findings highlight a substantial relationship between CSR disclosure and profitability (ROA) as well as firm performance (TBQ) of Halal food companies in Malaysia. The result showed economic, environmental, and social CSR disclosures have a significant effects on ROA and TBQ in dynamic models. The outcome of the study implies that actively engaging in economic, environmental, and social CSR practices provides with a competitive advantage, contributes to long-term viability, and attracts socially conscious investors. It also emphasises the strategic importance of comprehensive CSR strategies for encouraging positive stakeholder relationships, managing diverse aspects of sustainability, and enhancing overall business success, including employee engagement and motivation.