Corporate Social Responsibility Governance Driving Community Development and Sustainability in Selected Industrial Parks

Industrial parks play a crucial role in economic transformation and regional development within the modern global economy. However, their expansion raises increasing concerns about environmental management, social responsibility, and governance accountability. This study examines the relationships among Governance- Oriented Corporate Social Responsibility (CSRGO), Community Development (CD), and Business Sustainability (BS) within the framework of Ethiopia's emerging industrial parks. This research, grounded in stakeholder and institutional theories, examines the mediating role of CD in the relationship between governance-based CSR and business sustainability. A descriptive-explanatory quantitative design was employed, utilizing structured questionnaires distributed to employees and community members across four industrial parks in the Amhara Regional State. After data validation, 351 valid responses were analysed using Partial Least Square Structural Equation Modelling with Smart PLS version 4 to assess the proposed model. The measurement model demonstrated strong reliability and validity across constructs. The structural model results demonstrated significant positive effects of CSRGO on CD (β = 0.601, p < 0.001) and BS (β = 0.158, p = 0.001), as well as a strong influence of CD on BS (β = 0.636, p < 0.001). The indirect path (CSRGO → CD → BS) was significant (β = 0.383, p < 0.001), suggesting partial mediation. The model explained 55% of the variance in BS and 36% of the variance in community development, indicating moderate to strong explanatory and predictive power. The results demonstrate that CSRGO initiatives substantially enhance business sustainability, primarily through CD efforts. This study presents empirical evidence from the perspective of a developing country, demonstrating that sustainable industrial growth depends on the integration of governance integrity, social inclusiveness, and environmental responsibility. Policymakers and industrial park managers should enhance governance frameworks and strengthen community partnerships to promote inclusive and sustainable industrial development.