The Effect of Corporate Social Responsibility of Farmers’ Organization on the Income of B40 Households: A Multigroup Analysis

Badariah Haji Din, Muzafar Shah Habibullah and Abdul Rahim Anuar

The main objective of our study is to estimate the effect of corporate social responsibility of Farmers’ Organization on the income of B40 households by multi-group analysis. The results of our study show both B40 income group 1 (G1) and Group 2 (G2) indicate that CSR is significantly contribute to income creation; adoption of ICT; community and social based enterprises and also effected on the government support. However, for the construct of education and training, G1 income group produces a insignificant result, while G2 income group shows a significant relationship. When government support perform as a mediator in the model, the relationship of CSR on education and training; and on community and social based enterprises show significant result for both groups (G1 and G2). Overall, the role of CSR by Farmers’ Organization has been successful in improving the economic welfare of paddy estate participants in both group of income under B40 households. However, for the long-term, there should be a shift in the CSR paradigm run by Farmers’ Organization. In the context of rice estate projects, financial incentives, subsidy assistance, and advisory services provided by Farmers’ Organization can be said to be practically comprehensive. All of these are meant to generate income for paddy growers from poor to low income status, and from low to high income status.

Volume 11 | 05-Special Issue

Pages: 1031-1042