Effect of Corporate Social Responsibility on Community Resilience: Empirical Evidence in the Nickel Mining Industry in Southeast Sulawesi, Indonesia

Iskandar Zainuddin Rela, Abd Hair Awang, Zaimah Ramli, Yani Taufik, Sarmila Md Sum and Mahazan Muhammad
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Iskandar Zainuddin Rela: Department of Agricultural Extension, Kampus Hijau Bumi Tridharma, Halu Oleo University, Kendari 93132, Indonesia
Abd Hair Awang: Development Studies, Faculty of Social Sciences and Humanities, Universiti Kebangsaan Malaysia (UKM), Selangor 43600, Malaysia
Zaimah Ramli: Development Studies, Faculty of Social Sciences and Humanities, Universiti Kebangsaan Malaysia (UKM), Selangor 43600, Malaysia
Yani Taufik: Department of Agricultural Extension, Kampus Hijau Bumi Tridharma, Halu Oleo University, Kendari 93132, Indonesia
Sarmila Md Sum: Development Studies, Faculty of Social Sciences and Humanities, Universiti Kebangsaan Malaysia (UKM), Selangor 43600, Malaysia
Mahazan Muhammad: Development Studies, Faculty of Social Sciences and Humanities, Universiti Kebangsaan Malaysia (UKM), Selangor 43600, Malaysia

Sustainability, 2020, vol. 12, issue 4, 1-17

Abstract: Mining is an important industry in Indonesia. A nickel mining company has operated for almost 45 years. It has managed corporate social responsibility (CSR) programmes in the neighbouring local community. In addition to the environmental conservation and mitigation, as well as socioeconomic enhancement, the CSR is expected to nurture resilience in the local communities. This study’s goal is to examine the effect of CSR on community resilience (COM-R) in the surrounding community. To analyse the effect of CSR practise on COM-R, Partial Least Squares -Structural Equation Model (PLS-SEM) is used. Results show that CSR has a positive effect on and a significant relationship with COM-R. Results also indicate that CSR’s contribution to COM-R enhances community collective efficacy, community action, and adaptation. Thus, the verified CSR and COM-R model benefits other researchers, companies, and governments to be further explored.

Keywords: corporate social responsibility (CSR), community resilience; community capability; mining industry (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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