IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i4p1395-d320359.html
   My bibliography  Save this article

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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Iskandar Zainuddin Rela & Abd Hair Awang & Zaimah Ramli & Yani Taufik & Sarmila Md Sum & Mahazan Muhammad, 2020. "Effect of Corporate Social Responsibility on Community Resilience: Empirical Evidence in the Nickel Mining Industry in Southeast Sulawesi, Indonesia," Sustainability, MDPI, vol. 12(4), pages 1-17, February.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:4:p:1395-:d:320359
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/4/1395/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/4/1395/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ismail Al-Zyoud, 2017. "Impact of Corporate Social Responsibility Implementation in Jordanian Public Shareholding Companies on Sustainable Development," Asian Social Science, Canadian Center of Science and Education, vol. 13(2), pages 1-94, February.
    2. Jędrzej G. Frynas, 2008. "Corporate Social Responsibility and International Development: Critical Assessment," Corporate Governance: An International Review, Wiley Blackwell, vol. 16(4), pages 274-281, July.
    3. Naziatul Aziah Mohd Radzi & Khai Ern Lee & Sharina Abdul Halim & Chamhuri Siwar, 2018. "An Empirical Study of Critical Success Factors and Challenges in Corporate Social Responsibility (CSR) Implementation: The Case of Selected Corporate Foundations in Malaysia," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(3), pages 70-90, March.
    4. Maimunah Ismail & Siti Noormi Alias & Roziah Mohd Rasdi, 2015. "Community as stakeholder of the corporate social responsibility programme in Malaysia: outcomes in community development," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 11(1), pages 109-130, March.
    5. Franciane Reinert Lyra & Maria José Barbosa De Souza & Miguel Angel Verdinelli & Jeferson Lana, 2017. "Corporate social responsibility: comparing different models," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 13(4), pages 728-742, October.
    6. Singhapakdi, Anusorn & Lee, Dong-Jin & Sirgy, M. Joseph & Senasu, Kalayanee, 2015. "The impact of incongruity between an organization's CSR orientation and its employees' CSR orientation on employees' quality of work life," Journal of Business Research, Elsevier, vol. 68(1), pages 60-66.
    7. Alejandro Alvarado-Herrera & Enrique Bigne & Joaquín Aldas-Manzano & Rafael Curras-Perez, 2017. "A Scale for Measuring Consumer Perceptions of Corporate Social Responsibility Following the Sustainable Development Paradigm," Journal of Business Ethics, Springer, vol. 140(2), pages 243-262, January.
    8. Frederiksen, Tomas, 2018. "Corporate social responsibility, risk and development in the mining industry," Resources Policy, Elsevier, vol. 59(C), pages 495-505.
    9. Andrea Pérez & Ignacio Rodríguez del Bosque, 2013. "Measuring CSR Image: Three Studies to Develop and to Validate a Reliable Measurement Tool," Journal of Business Ethics, Springer, vol. 118(2), pages 265-286, December.
    10. John Hulland, 1999. "Use of partial least squares (PLS) in strategic management research: a review of four recent studies," Strategic Management Journal, Wiley Blackwell, vol. 20(2), pages 195-204, February.
    11. Jennifer J. Griffin & Ben Vivari, 2009. "United States of America: Internal Commitments and External Pressures," Springer Books, in: Samuel O. Idowu & Walter Leal Filho (ed.), Global Practices of Corporate Social Responsibility, chapter 11, pages 235-250, Springer.
    12. Karel Cool & Ingemar Dierickx & David Jemison, 1989. "Business strategy, market structure and risk‐return relationships: A structural approach," Strategic Management Journal, Wiley Blackwell, vol. 10(6), pages 507-522, November.
    13. Rod McCrea & Andrea Walton & Rosemary Leonard, 2016. "Developing a Model of Community Wellbeing and Resilience in Response to Change," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(1), pages 195-214, October.
    14. Marin Kim & Yi Xie & Giuseppe T. Cirella, 2019. "Sustainable Transformative Economy: Community-Based Ecotourism," Sustainability, MDPI, vol. 11(18), pages 1-15, September.
    15. Carroll, Archie B., 1991. "The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders," Business Horizons, Elsevier, vol. 34(4), pages 39-48.
    16. Dolores Gallardo-Vázquez & Luis Enrique Valdez-Juárez & Ángela María Castuera-Díaz, 2019. "Corporate Social Responsibility as an Antecedent of Innovation, Reputation, Performance, and Competitive Success: A Multiple Mediation Analysis," Sustainability, MDPI, vol. 11(20), pages 1-28, October.
    17. Sarstedt, Marko & Hair, Joseph F. & Ringle, Christian M. & Thiele, Kai O. & Gudergan, Siegfried P., 2016. "Estimation issues with PLS and CBSEM: Where the bias lies!," Journal of Business Research, Elsevier, vol. 69(10), pages 3998-4010.
    18. Robby Soetanto & Aaron Mullins & Nebil Achour, 2017. "The perceptions of social responsibility for community resilience to flooding: the impact of past experience, age, gender and ethnicity," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 86(3), pages 1105-1126, April.
    19. Glenn Banks & Regina Scheyvens & Sharon McLennan & Anthony Bebbington, 2016. "Conceptualising corporate community development," Third World Quarterly, Taylor & Francis Journals, vol. 37(2), pages 245-263, February.
    20. Helen Boon & Alison Cottrell & David King & Robert Stevenson & Joanne Millar, 2012. "Bronfenbrenner’s bioecological theory for modelling community resilience to natural disasters," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 60(2), pages 381-408, January.
    21. Arshad Khan Khalafzai & Niru Nirupama, 2011. "Building Resilient Communities through Empowering Women with Information and Communication Technologies: A Pakistan Case Study," Sustainability, MDPI, vol. 3(1), pages 1-15, January.
    22. Anna Lee Rowe & Margaret Nowak & Mohammed Quaddus & Marita Naude, 2014. "Stakeholder Engagement and Sustainable Corporate Community Investment," Business Strategy and the Environment, Wiley Blackwell, vol. 23(7), pages 461-474, November.
    23. Slack, Keith, 2012. "Mission impossible?: Adopting a CSR-based business model for extractive industries in developing countries," Resources Policy, Elsevier, vol. 37(2), pages 179-184.
    24. David Matarrita-Cascante & Bernardo Trejos & Hua Qin & Dongoh Joo & Sigrid Debner, 2017. "Conceptualizing community resilience: Revisiting conceptual distinctions," Community Development, Taylor & Francis Journals, vol. 48(1), pages 105-123, January.
    25. Dasaratha Rama & Bernard Milano & Silvia Salas & Che-Hung Liu, 2009. "CSR Implementation: Developing the Capacity for Collective Action," Journal of Business Ethics, Springer, vol. 85(2), pages 463-477, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Iskandar Zainuddin Rela & Muhammad Zamrun Firihu & Abd Hair Awang & Marsuki Iswandi & Jalaluddin Abdul Malek & Anas Nikoyan & La Nalefo & Hartina Batoa & Salahuddin Salahuddin, 2021. "Formation of Farming Community Resilience Models for Sustainable Agricultural Development at the Mining Neighborhood in Southeast Sulawesi Indonesia," Sustainability, MDPI, vol. 13(2), pages 1-17, January.
    2. Etienne ESPAGNE & Hugo LAPEYRONIE, 2023. "Energy transition minerals and the SDGs. A systematic review," Working Paper ebe0968c-fce0-4ce9-b3b6-b, Agence française de développement.
    3. Iskandar Zainuddin Rela & Zaimah Ramli & Muhammad Zamrun Firihu & Weka Widayati & Abd Hair Awang & Nasaruddin Nasaruddin, 2022. "COVID-19 Risk Management and Stakeholder Action Strategies: Conceptual Frameworks for Community Resilience in the Context of Indonesia," IJERPH, MDPI, vol. 19(15), pages 1-19, July.
    4. Zhou, Zhiyong & Wu, Yanhong & Xie, Qinghua, 2024. "Social responsibility, information technology, and high-quality development of mining enterprise using structural equation modeling (SEM)," Resources Policy, Elsevier, vol. 91(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Iskandar Zainuddin Rela & Abd Hair Awang & Zaimah Ramli & Sarmila Md Sum & Meisanti Meisanti, 2020. "Effects of environmental corporate social responsibility on environmental well‐being perception and the mediation role of community resilience," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2176-2187, September.
    2. Chih-Cheng Chen & Asif Khan & Tanaporn Hongsuchon & Athapol Ruangkanjanases & Yen-Tzu Chen & Ornlatcha Sivarak & Shih-Chih Chen, 2021. "The Role of Corporate Social Responsibility and Corporate Image in Times of Crisis: The Mediating Role of Customer Trust," IJERPH, MDPI, vol. 18(16), pages 1-20, August.
    3. Claudiu George Bocean & Michael Marian Nicolescu & Marian Cazacu & Simona Dumitriu, 2022. "The Role of Social Responsibility and Ethics in Employees’ Wellbeing," IJERPH, MDPI, vol. 19(14), pages 1-15, July.
    4. Peng, Xinyuan & Tang, Pengcheng & Yang, Shuwang & Fu, Shuke, 2020. "How should mining firms invest in the multidimensions of corporate social responsibility? Evidence from China," Resources Policy, Elsevier, vol. 65(C).
    5. Gaurav Dawar & Seema Singh, 2022. "How Can Small and Medium Enterprises Effectively Implement Corporate Social Responsibility?: An Indian Perspective," Global Business Review, International Management Institute, vol. 23(3), pages 756-784, June.
    6. Wilson, Sigismond A., 2022. "Measuring the effectiveness of corporate social responsibility initiatives in diamond mining areas of Sierra Leone," Resources Policy, Elsevier, vol. 77(C).
    7. Khawaja Fawad Latif & Aymen Sajjad, 2018. "Measuring corporate social responsibility: A critical review of survey instruments," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1174-1197, November.
    8. Asif Khan & Chih-Cheng Chen & Kwanrat Suanpong & Athapol Ruangkanjanases & Santhaya Kittikowit & Shih-Chih Chen, 2021. "The Impact of CSR on Sustainable Innovation Ambidexterity: The Mediating Role of Sustainable Supply Chain Management and Second-Order Social Capital," Sustainability, MDPI, vol. 13(21), pages 1-25, November.
    9. Veronica Devenin & Constanza Bianchi, 2018. "Soccer fields? What for? Effectiveness of corporate social responsibility initiatives in the mining industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 866-879, September.
    10. Ovidiu-Ioan Moisescu, 2015. "Adopting and Implementing CSR Policies in Travel Agency Business: The Case of Romania," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 27(2), pages 203-220.
    11. Uduji, Joseph Ikechukwu & Okolo-Obasi, Elda Nduka & Asongu, Simplice A., 2021. "Oil extraction in Nigeria's Ogoniland: The role of corporate social responsibility in averting a resurgence of violence," Resources Policy, Elsevier, vol. 70(C).
    12. Joseph I. Uduji & Elda N. Okolo-Obasi, 2023. "Ecotourism for Transformative and Youth Development in sub-Saharan Africa: the Role of Corporate Social Responsibility in Nigeria’s Oil Host Communities," Working Papers of the African Governance and Development Institute. 23/036, African Governance and Development Institute..
    13. Joseph Ikechukwu Uduji & Elda Nduka Okolo‐Obasi, 2023. "Gender equity and land: The role of corporate social responsibility in Niger Delta, Nigeria," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(6), pages 1216-1238, August.
    14. Jean-Marie Nkongolo-Bakenda & Elie V. Chrysostome, 2020. "Exploring the organizing and strategic factors of diasporic transnational entrepreneurs in Canada: An empirical study," Journal of International Entrepreneurship, Springer, vol. 18(3), pages 336-372, September.
    15. Christian Nitzl & Wynne W. Chin, 2017. "The case of partial least squares (PLS) path modeling in managerial accounting research," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(2), pages 137-156, May.
    16. Jean-Pierre Thomassen & Marijke C. Leliveld & Kees Ahaus & Steven Walle, 2020. "Prosocial Compensation Following a Service Failure: Fulfilling an Organization’s Ethical and Philanthropic Responsibilities," Journal of Business Ethics, Springer, vol. 162(1), pages 123-147, February.
    17. Joseph I. Uduji & Elda N. Okolo-Obasi, 2022. "Gender Difference in Nutrition and Health in Agricultural Households in Nigeria: the Role of Corporate Social Responsibility in Oil Producing Communities," Working Papers 22/042, European Xtramile Centre of African Studies (EXCAS).
    18. Jinhua Li & Yongyi Chen & Qiankai Qing, 2021. "Differentiated consumer responses to corporate social responsibility domains moderated by corporate social responsibility perceptions: A Kano model‐based perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1606-1619, November.
    19. Costa, Cláudia & Lages, Luis Filipe & Hortinha, Paula, 2015. "The bright and dark side of CSR in export markets: Its impact on innovation and performance," International Business Review, Elsevier, vol. 24(5), pages 749-757.
    20. Fatih Özcan & Meral Elçi, 2020. "Employees’ Perception of CSR Affecting Employer Brand, Brand Image, and Corporate Reputation," SAGE Open, , vol. 10(4), pages 21582440209, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:4:p:1395-:d:320359. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.