Improving Community Welfare Through the Implementation of Corporate Social Responsibility

Objectives: This paper aimed to analyze the influence of corporate social responsibility (CSR) and social capital on community welfare and the influence of corporate social responsibility (CSR) through social capital on community welfare. Theoretical Framework: The focus of this research was to examine the direct and indirect influence of CSR implementation on community welfare. The direct influence of social capital was community welfare. Some of the concepts used are welfare, social capital and CSR, as well as several empirical studies to support the model. Research Methodology: This research applied a quantitative research design with an inferential statistical approach. Data was collected in the form of secondary and primary data. Data was collected through in-depth interviews based on questionnaires, observation and literature review. The sample used was 97 people. Data analysis applied SmartPLS version 3. Findings: The study found that CSR has a positive and significant effect on community welfare and social capital. Social capital had a positive but insignificant effect on community welfare, and CSR had a positive but insignificant effect on community welfare through social capital. Research, Practical & Social Implications: This research focused on community welfare, CSR and social capital that influence it. Originality/Value: This study provided additional value for those who were active in improving welfare through community empowerment. CSR is a form of community empowerment that has a positive and significant effect on social capital and welfare. For this reason, social capital could be utilized optimally for the welfare of society.