The Impact of Corporate Social Responsibility on the Achievement of Sustainable Development in East Java: Community-Perception Evidence from Three Clusters of Industrial Intensity
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Abstract
Corporate social responsibility (CSR) is commonly assessed through corporate dis- closures, whereas the perspectives of people living around company operations re- main less visible. This study investigates whether residents’ perceptions of CSR are associated with perceived sustainable development in three East Java localities that represent contrasting industrial contexts. A cross-sectional survey produced 1,154 usable responses from resident’s familiar with local CSR programmes in Gresik Re- gency (n = 412), Malang City (n = 353), and Bojonegoro Regency (n = 389). Cova- riance-based structural equation modelling was combined with measurement-invari- ance tests and multigroup comparisons. Perceived CSR was positively associated with perceived sustainable development in each locality (p < 0.001). The association was weaker in Gresik than in Malang City and Bojonegoro, while the latter two did not differ significantly. Thus, the principal comparative finding distinguishes the high-in- dustry locality from the other two territorial settings rather than demonstrating a pro- gressive low-to-medium-to-high industrial-intensity gradient. Dimensional weights also varied across settings. The social dimension generally carried lower weights, but differences between loadings were not formally tested. These patterns are compati- ble with stakeholder and legitimacy perspectives, although the proposed explanatory mechanisms were not examined directly. Policy interpretation should therefore rely on context-sensitive assessment, community participation, and direct outcome indi- cators rather than treating factor loadings or R² as measures of programme perfor- mance or causal impact.
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AMELIA NOVITA, Asti; NASHIHAH, Durratun; WINOTO, Suhartono.
The Impact of Corporate Social Responsibility on the Achievement of Sustainable Development in East Java: Community-Perception Evidence from Three Clusters of Industrial Intensity.
Policy & Governance Review, [S.l.], v. 10, n. 3, p. 291-305, oct. 2026.
ISSN 2580-4820.
Available at: <https://www.journal.iapa.or.id/pgr/article/view/1423>. Date accessed: 06 oct. 2026.
doi: https://doi.org/10.30589/pgr.v10i3.1423.
Section
Articles
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
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Kuswati, Y., Hartati, T., & ... (2022). Implementation of e-government-based policies in improving public service satisfaction in the Majalengka Regency local government. … Journal of Social Science …. https://ejournal.undiksha.ac.id/index. php/IJSSB/article/view/44831
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Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & & Podsakoff, N. P. (2003). Common method biases in behavioral research. Journal of Applied Psychology, 88(5), 879–903.
Porter, M. E., & & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, 89(1/2), 62–77.
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Revika Septianingsih, L., Telekomunikasi Terusan Buah Batu, J., Kolot, D., & Muslih, M. (2019). Board Size, Ownership Diffusion, Gender Diversity, Media Exposure, dan Pengungkapan Corporate Social Responsibility (Studi Kasus pada Perusahaan Indeks SRI-KEHATI yang terdaftar di Bursa Efek Indonesia Periode 2013-2017). 11(2), 218–229. http://journal.maranatha.edu
Risi, D., Vigneau, L., Bohn, S., & Wickert, C. (2023). Institutional theory-based research on corporate social responsibility: Bringing values back in. International Journal of Management Reviews, 25(1), 3–23. https://doi.org/10.1111/ijmr.12299
Simionescu, L. N. (2015). The relationship between corporate social responsibility (CSR) and sustainable development (SD). Internal Auditing & Risk Management, 10(2).
Steurer, R., Langer, M. E., Konrad, A., & & Martinuzzi, A. (2005). Corporations, stakeholders and sustainable development I: A theoretical exploration of business society relations. Journal of Business Ethics, 61, 263–281.
Steurer, R., Langer, M. E., Konrad, A., & Martinuzzi, A. (2005). Corporations, stakeholders and sustainable development I: A theoretical exploration of business-society relations. Journal of Business Ethics, 61(3), 263–281. https://doi. org/10.1007/s10551-005-7054-0
Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571–610.
Udeagha, M. C., & Muchapondwa, E. (2023). Striving for the United Nations (UN) sustainable development goals (SDGs) in BRICS economies: The role of green finance, fintech, and natural resource rent. Sustainable Development, 31(5), 3657–3672. https://doi.org/10.1002/sd.2618
Visser, W. (2008). Corporate social responsibility in developing countries. In A. Crane, A. McWilliams, D. Matten, J. Moon, & D. Siegel (Eds.), The Oxford handbook of corporate social responsibility (pp. 473–499). Oxford University Press.
Waheed, A., Khan, M. S., Warraich, M. A., & & Ali, M. A. (2024). Environmental policy vs. environmental innovation: An examination of policies disclosure on sustainable development from stakeholder theory perspective. Sustainable Development, 32(3), 2506–2516.
YAN, Y., ZHAO, Z., XIN, D., & ... (2025). The Effect of Business Concept Intervention to the Implementation of Digital Governance in Local Government. Journal of Public …. https:// al-kindipublishers.org/index.php/jpar/article/ view/10725.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Bothello, J., Ioannou, I., Porumb, V. A., & Zengin- Karaibrahimoglu, Y. (2023). CSR decoupling within business groups and the risk of perceived greenwashing. Strategic Management Journal, 44(13), 3217–3251. https://doi.org/10.1002/ smj.3532
Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39–48.
Cheung, G. W., & & Rensvold, R. B. (2002). Evaluating goodness-of-fit indexes for testing measurement invariance. Structural Equation Modeling, 9(2), 233–255.
Cochran, W. G. (1977). Sampling techniques (3rd ed.). John Wiley & Sons.
Curran, P. J., West, S. G., & & Finch, J. F. (1996). The robustness of test statistics to nonnormality and specification error in confirmatory factor analysis. Psychological Methods, 1(1), 16–29.
DiMaggio, P. J., & & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160.
Domingo-Posada, R., Muñoz-Torres, M. J., & & Escrig-Olmedo, E. (2024). Sustainable development goals and corporate strategy: A map of the field. Corporate Social Responsibility and Environmental Management. https://doi. org/10.1002/csr.2717
Dowling, J., & & Pfeffer, J. (1975). Organizational legitimacy: Social values and organizational behavior. Pacific Sociological Review, 18(1), 122– 136. https://doi.org/10.2307/1388226
Ebner, D., & & Baumgartner, R. J. (2006). The relationship between sustainable development and corporate social responsibility. Corporate Responsibility Research Conference, Dublin.
Elkington, J. (1997). Cannibals with forks: The triple bottom line of 21st century business. Capstone.
Elkington, J. (2018). 25 years ago I coined the phrase “triple bottom line.” Here’s why it’s time to rethink it. Harvard Business Review, June 25.
Elmaghrabi, M. E. (n.d.). CSR committee attributes and CSR performance: UK evidence. Retrieved https://www.frc.org.uk/getattachment/88bd8c45-
Fatima, T., & Elbanna, S. (2023). Corporate Social Responsibility (CSR) Implementation: A Review and a Research Agenda Towards an Integrative Framework. In Journal of Business Ethics (Vol. 183, Number 1, pp. 105–121). Springer Science and Business Media B.V. https://doi.org/10.1007/ s10551-022-05047-8
Fornell, C., & & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman.
Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), 986–1014.
Haski-Leventhal, D. (2021). Strategic corporate social responsibility: A holistic approach to responsible and sustainable business. Sage.
Henseler, J., Ringle, C. M., & & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747- 014-0403-8
Kantabutra, S., & & Ketprapakorn, N. (2020). Toward a theory of corporate sustainability: A theoretical integration and exploration. Journal of Cleaner Production, 270, 122292.
Kline, R. B. (2016). Principles and practice of structural equation modeling (4th ed.). Guilford Press.
Kurnia, A., Shaura, A., Raharjo, S. T., & & Resnawaty, R. (2020). Sustainable development dan CSR [Sustainable development and CSR]. Prosiding Penelitian Dan Pengabdian Kepada Masyarakat, 6(3), 231–237.
Kuswati, Y., Hartati, T., & ... (2022). Implementation of e-government-based policies in improving public service satisfaction in the Majalengka Regency local government. … Journal of Social Science …. https://ejournal.undiksha.ac.id/index. php/IJSSB/article/view/44831
Lim, S. K., & & Yang, J. (2009). A Delphi study on the sustainability criteria and indicators for Australian road infrastructure projects. Proceedings of the 3rd CIB International Conference on Smart and Sustainable Built Environments, 1–7.
Manes-Rossi, F., & Nicolo’, G. (2022). Exploring sustainable development goals reporting practices: From symbolic to substantive approaches— Evidence from the energy sector. Corporate Social Responsibility and Environmental Management, 29(5), 1799–1815. https://doi.org/10.1002/ csr.2328
Mio, C., Panfilo, S., & & Blundo, B. (2020). Sustainable development goals and the strategic role of business: A systematic literature review. Business Strategy and the Environment, 29(8), 3220–3245.
Muslih, M. (2022). Financial Technology: Digital Legal Challenges and Indonesia’s Economic Prospects After Covid-19 Outbreak. Legality: Jurnal Ilmiah Hukum, 30(2), 255–266. https:// doi.org/10.22219/ljih.v30i2.22784
Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & & Podsakoff, N. P. (2003). Common method biases in behavioral research. Journal of Applied Psychology, 88(5), 879–903.
Porter, M. E., & & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, 89(1/2), 62–77.
Putri, N. A., Tereza, L., & & Fauziah, R. (2022). CSR dan pembangunan berkelanjutan [CSR and sustainable development]. Research in Accounting Journal, 2(3), 433–437.
Putrijanti, A., & Cahyaningtyas, I. (2023). Environmental Court And Principle Of Good Environmental Governance In Enforcing Environmental Law. Varia Justicia. https:// journal.unimma.ac.id/index.php/variajusticia/ article/view/8885
Rany, A. P., Farhani, S. A., Nurina, V. R., & Pimada, L. M. (2020a). Tantangan Indonesia Dalam Mewujudkan Pertumbuhan Ekonomi Yang Kuat Dan Pembangunan Ekonomi Berkelanjutan Melalui Indonesia Green Growth Program Oleh Bappenas. JIEP, 20(1).
Rany, A. P., Farhani, S. A., Nurina, V. R., & Pimada, L. M. (2020b). Tantangan Indonesia Dalam Mewujudkan Pertumbuhan Ekonomi Yang Kuat Dan Pembangunan Ekonomi Berkelanjutan Melalui Indonesia Green Growth Program Oleh Bappenas. JIEP, 20(1).
Revika Septianingsih, L., Telekomunikasi Terusan Buah Batu, J., Kolot, D., & Muslih, M. (2019). Board Size, Ownership Diffusion, Gender Diversity, Media Exposure, dan Pengungkapan Corporate Social Responsibility (Studi Kasus pada Perusahaan Indeks SRI-KEHATI yang terdaftar di Bursa Efek Indonesia Periode 2013-2017). 11(2), 218–229. http://journal.maranatha.edu
Risi, D., Vigneau, L., Bohn, S., & Wickert, C. (2023). Institutional theory-based research on corporate social responsibility: Bringing values back in. International Journal of Management Reviews, 25(1), 3–23. https://doi.org/10.1111/ijmr.12299
Simionescu, L. N. (2015). The relationship between corporate social responsibility (CSR) and sustainable development (SD). Internal Auditing & Risk Management, 10(2).
Steurer, R., Langer, M. E., Konrad, A., & & Martinuzzi, A. (2005). Corporations, stakeholders and sustainable development I: A theoretical exploration of business society relations. Journal of Business Ethics, 61, 263–281.
Steurer, R., Langer, M. E., Konrad, A., & Martinuzzi, A. (2005). Corporations, stakeholders and sustainable development I: A theoretical exploration of business-society relations. Journal of Business Ethics, 61(3), 263–281. https://doi. org/10.1007/s10551-005-7054-0
Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571–610.
Udeagha, M. C., & Muchapondwa, E. (2023). Striving for the United Nations (UN) sustainable development goals (SDGs) in BRICS economies: The role of green finance, fintech, and natural resource rent. Sustainable Development, 31(5), 3657–3672. https://doi.org/10.1002/sd.2618
Visser, W. (2008). Corporate social responsibility in developing countries. In A. Crane, A. McWilliams, D. Matten, J. Moon, & D. Siegel (Eds.), The Oxford handbook of corporate social responsibility (pp. 473–499). Oxford University Press.
Waheed, A., Khan, M. S., Warraich, M. A., & & Ali, M. A. (2024). Environmental policy vs. environmental innovation: An examination of policies disclosure on sustainable development from stakeholder theory perspective. Sustainable Development, 32(3), 2506–2516.
YAN, Y., ZHAO, Z., XIN, D., & ... (2025). The Effect of Business Concept Intervention to the Implementation of Digital Governance in Local Government. Journal of Public …. https:// al-kindipublishers.org/index.php/jpar/article/ view/10725.