Rural Cooperatives Social Responsibility in Promoting Sustainability-Oriented Activities in the Agricultural Sector: Nexus of Community, Enterprise, and Government

Abstract

The agricultural sector and Sustainability-oriented Activities (S-OAs) of farmers are recognized as critical factors to realize a more sustainable future. Hence, this study aimed to present a model for enhancing S-OAs among farmers by integrating Corporate Social Responsibility (CSR) into the structure of rural cooperatives. This research employed the stakeholder theory and a structural equation model to bridge the existing gap in understanding the nexus of farmers, cooperatives, and the government. This aimed to reinforce CSR and, consequently, S-OAs among farmers. The results revealed that the engagement of rural cooperatives in community-oriented ethical activities (C-OEAs) exhibited the first significant step toward enhancing CSR, which significantly promotes trust among farmers and their participation in cooperative programs. On the other hand, findings have demonstrated that a company's engagement in C-OEAs deeply results from its dependency level on the government. It was revealed that increasing external farmer participation, due to cooperative tool utilization, does not significantly impact CSR implementation within cooperatives. Overall, our results exhibited different approaches to strengthen S-OAs among farmers based on the interlinked dimensions of social responsibility. This assists in reinforcing S-OAs among farmers.