CORPORATE SOCIAL RESPONSIBILITY, RESILIENCE, AND COMMUNITY WELL-BEING: A PARTIAL LEAST SQUARES PATH MODELING (PLS-PM) APPROACH

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Abstract

The exploitation of mineral resources can drive economic growth but often threatens ecosystems, public health, and social cohesion. Corporate Social Responsibility (CSR) is a key strategy to mitigate these impacts and foster sustainable development that strengthens community resilience (COM-R) and well-being (CWB). This study examines CSR implementation and its effects on COM-R and CWB in nickel mining areas of Southeast Sulawesi, Indonesia, using stakeholder theory. Data were collected via a structured questionnaire (15 CSR items, 12 COM-R items, 15 CWB items) adapted from validated sources and tested for reliability and validity. A total of 490 household heads from 12 villages participated. Descriptive analysis identified prevailing CSR practices, and relationships among variables were tested using PLS-SEM 3.0. Findings show CSR efforts are concentrated in philanthropy, followed by economic, legal, and ethical domains. CSR has a moderate positive effect on COM-R and influences CWB dimensions differently—moderately in economic empowerment, environment, and health, but strongly in social cohesion, education, and infrastructure. Community resilience significantly mediates CSR’s impact on CWB. The study recommends transparent monitoring of CSR environmental actions, continuous capacity building for local entrepreneurs and women, and training for village leaders in sustainable planning. Stronger corporate-government collaboration is also vital to develop integrated downstream nickel industries, creating broader employment.