Analyzing Corporate Social Responsibility (CSR) Practices and Ethical Leadership in Promoting Sustainable Business: A Structural Equation Modelling Approach
Abstract
This study investigates the pivotal role of Corporate Social Responsibility (CSR) practices and ethical leadership in promoting sustainable business development across diverse regions of India, specifically focusing on Goa, Kerala, and Gujarat. Employing a quantitative approach, data was collected from a sample of 300 respondents through a structured questionnaire using a five-point Likert scale. The survey assessed perceptions of CSR initiatives, the influence of ethical leadership, and their combined effect on sustainability outcomes within the regional business landscape. To analyze the data, Partial Least Squares Structural Equation Modeling (PLS-SEM) was conducted using Smart PLS software, enabling the evaluation of complex relationships and the validation of hypotheses. The findings reveal a strong, positive correlation between ethical leadership and CSR engagement, both of which significantly contribute to sustainable business practices. The study highlights that organizations adopting responsible and transparent business practices, guided by ethical leadership, are more likely to enhance their long-term sustainability and contribute to regional development. Furthermore, the research underscores the growing relevance of integrating CSR into core business strategies to align with sustainable development goals (SDGs). By incorporating a machine learning perspective, the study also suggests avenues for future research in predictive modeling and CSR impact assessment. This research adds value to the existing literature by contextualizing CSR within India's varied socio-economic environments and offers practical insights for policymakers, business leaders, and sustainability advocates aiming to foster ethical and responsible business ecosystems across the country.