Analyzing the Impact of CSR on Corporate Performance Using PLS-SEM: Exploring the Mediating Roles of Human Resource Management and Customer Satisfaction in Pakistan's Food and Beverage Manufacturing Sector

Abstract

The study explores the relationship between corporate social responsibility (CSR), human resource management (HRM), client satisfaction, and business efficiency in Pakistani food and beverage manufacturing SMEs. Despite increasing interest in CSR, its effects on SME performance remain unclear. The research uses partial least squares structural equation modeling (PLS-SEM) to analyze survey data from 75 companies. Results show that CSR has significant positive direct effects on execution, HRM practices, and customer satisfaction. Firm performance strongly influences customer satisfaction, and CSR indirectly affects customer satisfaction. The study provides valuable insights for managers in the food and beverage sector, suggesting that integrating CSR into business strategies can yield tangible benefits. Future research directions include longitudinal studies and broader industry representation.