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Corporate Social Responsibility and Foreign Direct Investment: Legal, Political, and Historical Influences on the Development of Auditing in Malaysia
Abstract
As well as highlighting the importance of corporate governance mechanisms such as audits in facilitating Corporate Social Responsibility objectives and Foreign Direct Investment – where corporate social objectives are not unduly compromised, this chapter applies the political economic theory introduced by Tinker (1980) and refined by Cooper and Sherer (1984), which emphasizes social relations aspects of professional activity rather than economic forces alone. In a case study format where qualitative data was gathered mainly from primary and secondary source materials, the study found that the function of auditing in the Malaysian society in most cases is devoid of any essence of mission; instead it is created, shaped and changed by the pressures which give rise to its development over time. The largely insignificant role that it serves is intertwined within the contexts in which it operates. Furthermore, chapter is aimed at highlighting the importance and role of external audits – particularly in the aftermath of the 2008/09 global Financial Crisis.
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