Corporate Social Responsibility (CSR) to Sustain in the Competitive Market Based on the Structural Equation Model: Evidence from Bangladesh.

Abstract

This study has explored the role of creating good relationship among organization with society and people, brand of an organization, a loyal customer, attention of the potential customers as a structural equation factor between Corporate Social Responsibility (CSR) and sustainability in competitive market. It has been compiled that many of research on the relationship between corporate social responsibility and sustainability in the Competitive Market Performance have concentrated on large industry. The objectives of this study are to build and test a theoretical model to identify the structural equation model in the linkage between CSR and sustainability in competitive market. The theoretical model (CIPP Model) is deduced using strategic paradigm of literature. It consists of CSR, society and people, Brand of an organization, a loyal customer, and attention of the potential customers. Furthermore, several hypotheses were generated to examine the model. Structural Equation Modeling (SEM) is employed to test the model using data from 250 CSR practicing firms from developing country (Bangladesh). Confirmatory Factor Analysis (CFA) is performed followed by Structural Equation Modeling to examine the model. The results generally support the hypothesized model with research and managerial implications. Besides proving the business case for the CSR in general, it also advocates the adoption of CSR practices by firms and MNEs operating in the developing countries, as it may sustainability in competitive market and maintain productivity leading to their increased financial performance. This model would be practical and useful for business managers who seek a competitive solution for succeeding in a business crisis and working in the settings of international business.