Mediating Role of Financial Transparency in Strengthening Economic Resilience

Abstract

Purpose: This study investigates the relationship between Corporate Social Responsibility (CSR) and economic resilience in coastal communities in Indonesia, highlighting the mediating role of financial transparency. It aims to clarify how CSR’s economic, social, and environmental dimensions contribute to resilience in areas marked by ecological fragility and socio-economic vulnerability.

Design/Methodology/Approach: A quantitative research design was applied using a causal model. Data were collected through structured questionnaires distributed to 100 respondents in Segarajaya Village, Bekasi Regency. Multiple linear regression was employed to assess the direct and mediating effects of CSR and financial transparency on community resilience.

Findings: The findings indicate that social CSR significantly enhances both economic resilience and financial transparency. Environmental CSR improves transparency but does not directly influence resilience, while economic CSR shows no significant effect. Financial transparency independently supports resilience but does not mediate the CSR–resilience relationship.

Originality/Value: This study advances CSR literature by integrating financial accountability into CSR effectiveness analysis. It provides practical insights for designing community-responsive CSR strategies that align with national development objectives, regulatory frameworks, and the broader agenda of non-military national resilience. The findings underscore the strategic value of financial governance in fostering inclusive development within coastal areas.