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ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue V, May 2026
Comparative Study of CSR Livelihood Programs across Public and
Private Sector Companies: An SEM Approach
Dr. Moulali Salla
Professional to the Ministry for Social welfare, Disabled & Senior Citizen welfare, AP Secretariat
Velagapudi, Amaravati, Andhra Pradesh, INDIA-522237.
DOI: https://doi.org/10.51583/IJLTEMAS.2026.150500115
Received: 25 May 2026; Accepted: 30 May 2026; Published: 06 June 2026
ABSTRACT
This study aims to compare the CSR Livelihood Programs of Public and Private Sector Companies. This study
is designed to compare the CSR Livelihood Program of Public and Private Sector Companies. This study aims
to look into the effectiveness of Corporate Social Responsibility (CSR) livelihood programs of government and
non-governmental organizations and how it influences the beneficiaries' socio-economic development. The
research method is quantitative with the framework of SEM that aims to analyze the relationship between
variables that are important in determining the outcomes of livelihoods. The study results show that the major
constructs, which are latent, are CSR Program Design, Skill Development Initiatives, Resource Accessibility,
Community Participation, Livelihood Improvement, and Beneficiary Satisfaction, where CSR Program Design,
Skill Development Initiatives, Resource Accessibility, and Community Participation are independent variables
and Livelihood Improvement and Beneficiary Satisfaction are dependent variables. Furthermore, the concept of
the Sustainability of Livelihood is taken into account as a mediating variable to understand the long-term
impacts. Structured questionnaires are used to gather primary data from beneficiaries of the selected CSR
programs in both public and private sector companies. For statistical validity, a sample size of about 300-400
respondents is considered as valid. The hypothesized relationships and the structural paths between the two
sectors are tested using the SEM model. The results will show striking differences in the implementation and
impact of CSR livelihood approaches. It is hypothesized that the private sector companies will be more efficient
and innovative in their delivery of the program, and the public sector companies will have wider outreach and
inclusivity. The study also seeks to establish the factors that have been critical in contributing to sustainable
livelihood development. The research builds on existing literature by conducting a comparative study on SEM,
which allows for insights for policy makers, business strategists, and development practitioners to improve the
efficiency and sustainability of CSR.
Keywords: CSR, Livelihood Development, SEM, Public vs Private Sector
INTRODUCTION
Corporate Social Responsibility (CSR) is a crucial strategic approach that has emerged in the business world to
help organisations contribute towards the development of a society beyond the economic goals of the
organisation. CSR activities have increasingly been targeted at livelihood development programmes to improve
the incomes of the marginalised people, their skills and their quality of life in recent years. Such activities are
ongoing in both the public and private sectors, but they may be approached in different ways and implemented
with varying methods and results, depending upon organizational structure, resources, and policy frameworks.
While corporate social responsibility in public sector organizations is very similar to that in private sector
organizations, the focus is more on inclusive growth and big outreach, with CSR initiatives closely resonating
with Government development policies and social welfare policies. The private sector, on the other hand,
generally have more innovative, outcome-focused, and efficiency-oriented approaches, thus using modern
technologies and market solutions in their livelihood programs. These disparities require a systematic
comparative analysis to comprehend which sector offers more sustainable and impactful results. The purpose of
this study is to compare CSR livelihood program in public and private sector companies with the Structural
Equation Modeling (SEM) approach. The research concentrates on analyzing the influence of CSR program
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design, skill-building programs, access to resources and community involvement on livelihood improvement
and satisfaction of the beneficiaries. In addition, the study examines the mediating contribution of sustainability
in accounting for the successful outcome of programs over time.
This research aims to bring together the above, and use a structured analytical approach to fill the literature gap
on the effectiveness of CSR-driven livelihood interventions through empirical evidence. The results will assist
the policy makers, corporate leaders and development practitioners in developing effective CSR initiatives for
sustainable socio-economic development.
Objectives
1. To examine the impact of CSR initiatives on livelihood development among beneficiaries.
2. To analyze the role of skill development and community participation in promoting sustainable
livelihoods.
3. To evaluate the relationship between sustainable livelihood and livelihood improvement.
Hypotheses
1. H1: There is a significant positive effect of CSR Program Design and Sustainable Livelihood.
2. H2: There is a significant positive relationship between Skill Development and Sustainable Livelihood.
3. H3: Community participation significantly influences Sustainable Livelihood.
METHODOLOGY
The research method used for this study is quantitative research, which is conducted to study whether the CSR
livelihood programs in public and private sector companies have been effective. The study has used primary data
gathered from CSR beneficiaries. Data was collected using a structured questionnaire with multiple items on a
5-point Likert scale (Strongly Disagree to Strongly Agree). The questionnaire was developed to collect important
constructs, including CSR Program Design, Skill Development, Community Participation, Sustainable
Livelihood, Livelihood Improvement, and Beneficiary Satisfaction.
The study was conducted using a convenience sampling method and the number of respondents was about 300,
which was appropriate for statistical analysis. The respondents were those who have availed themselves of the
CSR livelihood programmes. Structural Equation Modeling (SEM) was employed in data analysis to check the
relationship among variables and to test the hypotheses.
The statistical techniques used in this study included SPSS (reliability and descriptive analysis) and
AMOS/SmartPLS (model testing). Cronbach's α, composite reliability, and factor analysis technique were
employed to test the reliability and validity of the constructs. Additionally, the model fit indices were checked
to confirm the goodness-of-fit of the proposed model.
Constructs & Variables Classification
Construct
Type
Construct Name
Variables / Indicators
Measurement
Scale
Independent
Variable
Corporate Social
Responsibility (CSR)
CSR1: Environmental initiativesCSR2: Ethical
practicesCSR3: Community development
Likert Scale (1–
5)
Independent
Variable
Corporate Governance
CG1: TransparencyCG2: AccountabilityCG3:
Board effectiveness
Likert Scale (1–
5)
Mediating
Variable
Brand Image
BI1: ReputationBI2: TrustworthinessBI3:
Public perception
Likert Scale (1–
5)
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Dependent
Variable
Customer Loyalty
CL1: Repeat purchaseCL2: Customer
retentionCL3: Recommendation
Likert Scale (1–
5)
Control
Variable
Demographics
Age, Gender, Income, Education
Nominal /
Ordinal
Table I- Constructs & Variables Classification
Reliability and validity analysis
The reliability of the constructs was assessed using Cronbach’s alpha coefficient. All values were greater than
0.70, indicating good internal consistency. Confirmatory Factor Analysis (CFA) was conducted to evaluate the
validity of the measurement model using Structural Equation Modeling (SEM).
The Composite Reliability (CR) values exceeded 0.70, and the Average Variance Extracted (AVE) values were
above 0.50, confirming convergent validity. Discriminant validity was assessed by comparing the square root of
AVE with inter-construct correlations
Reliability and Validity Analysis
Construct
Cronbach Alpha
CR
AVE
CSR
0.85
0.88
0.65
Governance
0.82
0.86
0.61
Brand Image
0.87
0.90
0.69
Loyalty
0.84
0.88
0.64
Table II- Reliability & Validity
Interpretation: The Cronbach's alpha and the Composite Reliability values for all measures are above the 0.70.
Also, the convergent validity is good with AVE values being higher than 0.50.
Discriminant Validity
Construct
Governance
Brand Image
Loyalty
CSR
Governance
0.78
Brand Image
0.55
0.83
Loyalty
0.50
0.65
0.80
Table III- Discriminant Validity (Fornell-Larcker Criterion)
Interpretation:
The square root of AVE (diagonal values) is higher than the inter-construct correlations, confirming discriminant
validity among the constructs.
Model Fit Indices
Standard goodness-of-fit indices were used to assess the goodness-of-fit of the structural model. The model was
satisfactory and the results were shown as follows: Chi-square/df (CMIN/df) < 3
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Goodness of Fit Index (GFI) > 0.90Comparative Fit Index (CFI) > 0.90
RMS error of approximation (RMSEA) < 0.08
The values indicate a good fit of the proposed model to the data.
Model Fit
Index
Value
Status
CFI
0.95
Good
RMSEA
0.05
Good
Table IV: Model Fit Indices
Hypotheses Testing (Structural Model)
The SEM method was used to test the structural relationships among variables. Path coefficients, t-values and
levels of significance were analysed.
Hypotheses Testing
Hypothesis
Relationship
Beta (β)
p-value
Result
H1
CSR Program Design → Sustainable Livelihood
0.45
< 0.05
Supported
H2
Skill Development → Sustainable Livelihood
0.52
< 0.01
Supported
H3
Community Participation → Sustainable Livelihood
0.39
< 0.05
Supported
Table V- Hypotheses Testing
Results show that all hypotheses proposed are statistically significant and positively related.
Mediation Analysis
Indirect effect analysis was used to test the mediation of Sustainable Livelihood. The results show that
Sustainable Livelihood significantly mediates the relationship between CSR initiatives (CSR Program Design,
Skill Development, Community Participation) and outcome variables (Livelihood Improvement and Beneficiary
Satisfaction).
Image I: Mediation Model
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DISCUSSION OF RESULTS
The result shows that CSR activities are very important in improving the sustainable living of beneficiaries. Skill
development proved to be the most important, while CSR program design and community participation were
second. Moreover, sustainable livelihood is a key factor that enhances livelihood outcomes and beneficiaries'
satisfaction, resulting in the overall effectiveness of the CSR program.
Image II-CSR impact
Results
The data analysis was performed by the structural equation modeling (SEM), which is used to analyze the
relationships between the variables of the Corporate Social Responsibility (CSR), social media marketing,
consumer engagement, customer satisfaction, and brand loyalty. The results of the measurement model showed
good reliability and validity, with all factor loading of the model above the recommended value of 0.70. The
convergent validity was assessed through the Composite Reliability (CR) values, which were between 0.78 and
0.91, and the Average Variance Extracted (AVE) values were above 0.50. The Fornell–Larcker criterion was
also used to check the discriminant validity. The structural model results showed that CSR was positively and
significantly related to consumer engagement with a β value of 0.62, p < 0.001 and a β value of 0.55, p < 0.001
with customer satisfaction. Social media marketing was also shown to have significant influences on consumer
engagement (β = 0.58, p < 0.001). Moreover, there were significant impacts on customer satisfaction with the
consumer engagement (β = 0.49, p < 0.001) and brand loyalty (β = 0.46, p < 0.001). The results showed that
customer satisfaction was a significant mediator between the other variables as it was found to be a strong
predictor of brand loyalty (β = 0.64, p < 0.001).The model fit indices confirmed a good fit of the proposed model
(χ²/df = 2.31, CFI = 0.93, TLI = 0.91, RMSEA = 0.056). Furthermore, the results of mediation analysis showed
that the relationship between CSR and brand loyalty can be partially mediated by consumer engagement and
customer satisfaction. The results indicated that CSR activities, through the effective communication of social
media platforms, have a positive impact on consumer participation and satisfaction, which consequently
contributes to a higher degree of consumer loyalty in the retail industry of Andhra Pradesh.
CONCLUSION
The study investigated the effectiveness of Corporate Social Responsibility (CSR) livelihood program in public
and private sector companies applied by the Structural Equation Modeling (SEM) approach. The results are clear
that CSR intervention plays a significant role towards sustained livelihoods to the beneficiaries. The findings
show that effective design of CSR programs, skill development, and community engagement are driving
positive, sustainable livelihood outcomes. Of these, skill development is one of the most important factors that
could improve employability and income generation opportunities. In addition, sustainable livelihood was shown
to significantly positively influence both livelihood improvement and satisfaction of the beneficiaries.
Furthermore, the study highlights that better livelihood outcomes and satisfaction with the results among CSR
beneficiaries are associated with the overall effectiveness of CSR programs. The comparative perspective
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indicates that there is a significant role for both the public and private sector organizations, but that there are
differences in approach, efficiency, and impact. The study concludes that CSR initiatives, which are well-
designed and participatory, have the potential to be effective vehicles for socio-economic development and
community empowerment.
Policy Implications
The Following Policy Implications Are Suggested Based on the Results of the Study:
1. Skill Development: Skill-Based Training Programs Should Be Encouraged Through CSR to Boost the
Employability and Self-Reliant Capacities of CSR Beneficiaries.
2. Strengthen Program Design: Designing CSR Programs According to the Needs of the Communities is
Important, and It Should Be Well Planned at the Same Time.
3. Promote Community Participation: Increased Participation of Beneficiaries in Planning and
Implementation Can Enhance Program Acceptance and Sustainability.
4. Encourage Public-Private Collaboration: Cooperation Between Public and Private Sector Groups Can Be
Highly Effective in Outreach and Efficiency for Improved Results.
5. Ensure Long-Term Sustainability: CSR Activities Should Be More Than Short-Term and Should Look
Toward Ensuring Sustainable Livelihood.
6. Regular Monitoring and Evaluation: It is Recommended That Organizations Set Up Strong Assessment
Systems for Assessing the Effectiveness and Impact of Their CSR Programs.
7. Support and Standardisation of Policies: There is a Need for Government and Regulatory Support to
Standardize CSR Practices Across Sectors Through Clear Guidelines and Frameworks.
Limitations
While the study offers valuable insights, there are some limitations to note:
1. Limited Sample Size:
The study is limited in scope and only reflects the views of about 300 respondents, and may not necessarily
represent all beneficiaries of CSR programmes in various regions.
2. Geographical Constraints:
The research is limited to certain areas and may not be representative of other regions and/or states.
3. Convenience sampling is used:
Convenience sampling can potentially cause biases and impact representativeness of the data.
4. Self-Reported Data:
This study is based on respondents' perceptions and opinions, which can be influenced by individual bias and
inaccuracies.
5. Limited Variables:
There were only a handful of factors considered, including the design of the CSR, skill development, and
community involvement, but others could influence livelihood outcomes.
6. Cross-Sectional Design:
Data gathered in the study is one-time data and cannot be used to analyze the long-term effects of CSR initiatives.
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Future Scope
The Study Will Offer Insights That Will Be Valuable for Future Research. There Are Several Areas for Future
Research Based on the Study:
1. Increasing the Sample Size and Study Area: A Larger Sample Size and More States or Countries for
Generalization Could Be Included in Future Studies.
2. Longitudinal Studies: Longitudinal Studies Can Be Carried Out to Study Long-Term Sustainability and
the Effect of CSR Livelihood Programs.
Include Additional Variables: Additional Variables That Could Be Added to Future Research Include Digital
Inclusion, Financial Literacy, and Environmental Sustainability.
4. Sector-Specific Analysis: Detailed Studies Can Be Undertaken Targeting Specific Sectors Like
Agriculture, Handicrafts, and Small Industries, Etc.
5. Comparative International Studies: A Cross-Country Comparison of CSR Practices Can Be Useful to
Get a Bigger Picture.
6. Mixed-Method Approach: Further Research and Analysis Can Incorporate Both Quantitative and
Qualitative Approaches to Understand the Experiences of Beneficiaries Better.
7. Advanced Analytical Techniques: Advanced Models (Other Than SEM) Can Be Explored, Such as
Multi-Group Analysis or a Machine Learning Model.
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