The interaction between governance, social responsibility, and territorial attractiveness: an application of “the structural equation modeling approach”

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The purpose of this article is to present and test a conceptual framework that describes how the government’s commitment in improving corporate social responsibility (CSR) practices promotes the attraction of foreign direct investment (FDI) in Tunisia. As such, this conceptual framework inspires the existence of an interaction between the improvement of CSR practices by public policies (PP), and the attraction of FDI. In this regard, this study applied structural equation modeling (SEM) to empirically test this proposed model. It finds that the Tunisian government is valuing CSR and considering it as an investment. It presents examples of instruments, PP and tools that encourage to adopt CSR practices, thus, enhancing the attraction of FDI, which will have a positive impact on the growth of the country in terms of wealth creation, jobs and poverty reduction.

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    • Figure 1. Territorial attractiveness factors according to Michalet (1999)
    • Figure 2. Determinants of (CSR) practices (Case of multinational companies). Personal elaboration according to the foundations of Borchani (2008)
    • Figure 3. Personal elaboration according to the foundations of El Malki (2010), World Bank (2005) and Navas and Guerras (2018)
    • Figure 4. Proposed conceptual framework
    • Figure 5. Estimated model
    • Table 1. Companies contributing to the CSR located in Tunisia
    • Table 2. Profile of respondents
    • Table 3. Cronbach’s alpha values
    • Table 4. Concept’s PCA
    • Table 5. Loadings table
    • Table 6. Discriminant validity
    • Table 7. Model evaluation
    • Table 8. Model’s linear quality
    • Table 9. Direct impact of PP on TA
    • Table 10. Effect of PP on CSR practices
    • Table 11. Models of policies improving CSR practices in 15 EU countries
    • Table 12. Effect of improving CSR practices on the attraction of FDI
    • Table 13. PEST analysis
    • Table A1. Conceptualization of variables