Catalyst™ (corporate activism & leadership yielding sustainable transformation)

The aim of this paper is to present an innovative corporate governance mechanism model, which suits the Malaysian corporate environment and seeks to enhance shareholder activism, promote the ethical and socially responsible practices. The enhanced model sought to address the problem of active participation of the shareholders in the corporate governance activity–this activity was becoming more pronounced in relation to the demands for the ESG and risk management frameworks in Malaysia. This model distorts the lines between the historical notion of a corporate governance mechanism and modern developments and the integration of old and new approaches. Some key components of the model comprise a range of engagement mechanisms, including meetings with management, related voter education campaigns, among others, and setting up standard benchmarks for assessing impact. The peculiarity of the model is first in its applicability to the multi variance of the Malaysian socio-cultural and the legal environment and last but not least it relates to the specific needs of the diverse industries in the effort of placing relevancy in the local perspectives. The model provides a great socio-economic benefit by stimulating ethically acceptable business ethics and driving the cases of business transparency and thereby contributing to the sustainable economic.