Community-Based Corporate Social Responsibility: a Series of Confirmatory Factor Analyses

Abstract

Purpose: Using confirmatory factor analysis (CFA), this study sought to develop and evaluate a new model of CSR activities from a community perspective. Theoretical Framework: The levels of CSR activities are evaluated by the four dimensions summarized by Carroll (1991): ETH (Ethical dimension), PHil (Philanthropic dimension), Eco (Economic dimension), and Law (Legal dimension). Items in every dimension were validated using CFA. The ethical, philanthropic, economic, and legal frameworks also provided evidence of validity and reliability. Design/methodology/approach: The study employed a cross-sectional survey method in which structured questionnaires were used to gather data from a randomly selected sample of 317 residents from three selected villages in the State of Malacca, Malaysia. The statistical analysis was performed using Structural Equation Modeling (SEM). Findings: The CSR model approaches were validated and demonstrated to be effective. Four constructs' results demonstrated the validity and reliability of the measurement methodology for CSR practice components. The results showed that the fitness index is satisfactory. Additionally, all correlations were found to be less than 0.85, suggesting that the construct correlations are satisfied. Thus, the model is proven to be valid. Research, Practical & Social Implications: This research provides valuable information concerning community-based CSR practices that could supplement organizations’ efforts toward offering positive social contributions. This research could also help organizations to adopt a more creative approach to profit maximization. Originality/value: This research developed a new model for community-based CSR. This new perspective can offer insights into the development of CSR in the Malaysian context.