Corporate social responsibility practice and its effects on community wellbeing in Southeast Sulawesi, Indonesia

Abstract

Corporate social responsibility (CSR) should address the concerns of stakeholders toward its business activities and the social, economic, and environmental changes that CSR brings to the community. This study analyzes the impact of the CSR dimensions on community well-being (CWB). The measured CSR dimensions are economic, legal, and ethical aspects, including philanthropy. By contrast, CWB involves the social aspects, economic empowerment, and the environment. A total of 490 respondents from the local community answered survey questionnaires, while Smart PLS.3.0 is used for data analysis. Results of the structural model analysis identified a significant, positive, and direct relationship between CSR and CWB. The implications of this study establish an important link between the CSR and CWB dimensions.