STRATEGIC LEGITIMACY IN POLITICALLY SENSITIVE CONTEXTS: EVALUATING THE ROLE OF CSR DISCLOSURE, REGULATORY PRESSURE, AND COMMUNITY ENGAGEMENT IN LATIN AMERICA’S EXTRACTIVE INDUSTRIES USING FSQCA AND LOGISTIC REGRESSION
STRATEGIC LEGITIMACY IN POLITICALLY SENSITIVE CONTEXTS: EVALUATING THE ROLE OF CSR DISCLOSURE, REGULATORY PRESSURE, AND COMMUNITY ENGAGEMENT IN LATIN AMERICA’S EXTRACTIVE INDUSTRIES USING FSQCA AND LOGISTIC REGRESSION

Summary/Abstract: This study investigates how Corporate Social Responsibility (CSR) serves as a strategic tool for legitimacy within extractive industries in Latin America. Using an original dataset of 45 extractive firms operating across five Latin American countries, the research integrates fuzzy-set Qualitative Comparative Analysis (fsQCA) and logistic regression to uncover causal pathways and assess the robustness of observed relationships. Key variables include CSR disclosure quality, community engagement intensity, conflict levels, regulatory pressure, and political sensitivity. The findings reveal that legitimacy is not determined by isolated factors but by specific configurations, particularly the joint presence of high CSR disclosure, active community engagement, and low conflict intensity. Logistic regression confirms the significance of disclosure and engagement as individual predictors of perceived legitimacy, while conflict intensity negatively predicts legitimacy. fsQCA further identifies three high-consistency (≥ 0.75) and supported configurations associated with legitimacy, emphasizing the importance of regulatory context and stakeholder alignment. The results underscore the configurational nature of CSR legitimacy in politically sensitive sectors and call for integrated CSR policies that align disclosure transparency with substantive stakeholder engagement. Policymakers are encouraged to strengthen participatory regulatory frameworks and enforce third-party CSR auditing. Future research should incorporate longitudinal and cross-sectoral analyses to better capture dynamic shifts in legitimacy construction across institutional environments.

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