Confirmatory Factor Analysis of CSR Construct: Indonesian MSMEs Context

Every firm will have to deal with complexity, change, and the same intense commercial rivalry that big businesses confront as well as small, medium, and large businesses (MSMEs). Through the Corporate Social Responsibility (CSR) program, external stakeholders (both public and private) must provide support and direction for MSME success to be achieved. The goal of this study is to evaluate the CSR program's confirming aspects using Carroll's (1991) pyramid model, namely the four pillars of economic, legal, ethical, and philanthropic responsibility, to enhance the performance of SMEs. Large firms and enterprises have historically used the CSR framework to boost their public image and enhance performance. The CSR construct is used in this study as a means of support for MSME players by the government (BUMN) and the private sector, and it is investigated using confirmatory factor analysis. This research is innovative and advances science. The population of this research consisted of 165 MSME owners who had received CSR program support from the public and private sectors in Tulung Agung Regency, Blitar Regency, Malang City, Batu City, and Sidoarjo Regency. According to the results of the Confirmatory Factor Analysis, it can be done through economic responsibility, such as encouraging MSMEs to develop long-term strategies, legal responsibility, such as encouraging MSMEs to be aware of relevant environmental laws, ethical responsibility, such as encouraging MSMEs to be given enough training to carry out safe work duties, and philanthropic responsibility, to improve the performance of MSMEs.