The Impact of Perceived Benefits of Corporate Social Responsibility Initiatives on Wetland Farming Communities in Indonesia

Abstract

The Corporate Social Responsibility (CSR) literature has advanced beyond its long-standing emphasis on a firm's financial performance to include its social impact. However, it has fallen short of offering insight into how effective CSR is in the event of a disaster. This study investigated the community's perception of CSR in wetland farmers communities after flood disasters. Data were from 49 farmer groups in South Kalimantan Province, Indonesia. The research hypotheses were drawn: Perceived benefits of CSR initiatives affect farming community resilience, farming community wellbeing, and perceived competence of wetland farmers; Community resilience affects community wellbeing; Community wellbeing and community resilience affect perceived competence of farmers. The structural equation modeling (SEM) analysis showed that CSR initiatives positively affected community resilience and community wellbeing but had no effect on the perceived competence of farmers; Community resilience had a positive effect on community wellbeing. However, both community wellbeing and resilience did not affect perceived competence. This study sheds light on the complex link between the community and the individual. Triple bottom line and community psychology theories were applied, and this study contributes to the social impact of CSR by focusing on both community and individual, especially in the face of natural disasters in wetlands.