Building Social License through CSR: An Analysis of Brand Image Architecture in the Mining Sector

Abstract

Obtaining a Social License to Operate is a crucial challenge for the sustainability of mining companies, where a positive corporate brand image serves as its foundation. This study aims to analyze the architecture of brand image by examining the strategic roles of Corporate Social Responsibility (CSR) Intensity and Perceptions of Environmental Practices. Using a quantitative approach, survey data were collected from 225 community members around the operational area and analyzed using Partial Least Squares - Structural Equation Modeling (PLS-SEM). The results show that CSR Intensity partially has a positive and significant effect on Corporate Brand Image (β = 0.506; p < 0.001). However, when analyzed simultaneously, the influence of CSR becomes insignificant, while Perceptions of Environmental Practices demonstrate a dominant and highly significant positive effect (β = 0.958; p < 0.001). This combined structural model explains 90% of the variance in Corporate Brand Image (Adjusted R² = 0.900). These findings indicate that while CSR initiatives are valued, perceptions of environmental performance are a far more fundamental and powerful predictor in shaping brand image. The strategic implication is that mining companies must prioritize superior environmental practices as the main pillar of their reputation strategy.