The Business of Doing Good: An Empirical Analysis of Corporate Social Responsibility and Consumer Perceptions in Latvia

Ņikadimovs Oļegs ()
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Ņikadimovs Oļegs: University of Latvia, Faculty of Economics and Social Sciences, 5 Aspāzijas boulevard, LV-1050, Rīga, Latvia

WSB Journal of Business and Finance, 2025, vol. 59, issue 1, 122-146

Abstract: Corporate social responsibility (CSR) has long become a fundamental component of business strategies, affecting consumer behaviour, brand loyalty, and competitive advantage. This study assesses the influence of consumer perceptions of CSR initiatives in Latvia. The study uses mixed methods, combining elements of quantitative and qualitative research to answer the research questions. The empirical phase included a survey of 502 Latvian consumers, utilising both closed- and open-ended questions to gather insights on perceptions related to economic, legal, ethical, and philanthropic dimensions of CSR. The study develops a causal model to establish key hypotheses of the effects of CSR initiatives on perceived legitimacy, brand trust, long-term sustainability, and consumer value, including the mediating roles of key constructs and the moderating effects of demographic factors. The methods include descriptive statistics, exploratory factor analysis, reliability analysis, regression analysis, and PROCESS mediation/moderation models, with findings indicating that CSR actions substantially improve perceived legitimacy, brand trust, and sustainability, thus improving perceived CSR value. The level of education proved to be a more significant predictor of CSR perceptions compared to age, which showed limited influence; meanwhile, gender differences were identified across various CSR-related constructs. The thematic analysis of qualitative data underscored the significance of authenticity, transparency, and stakeholder engagement in shaping consumer attitudes. The findings highlight the significance of CSR integration for companies in Latvia, as it improves consumer loyalty and brand reputation, supporting CSR as a crucial factor in achieving competitive advantage. This study contributes to the academic discussion on CSR’s role in business strategy as a significant driver of competitive advantage and provides a basis for future research on emerging CSR trends.

Keywords: corporate social responsibility; consumer perceptions; sustainable development; Latvia; competitive advantage (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:wsbjbf:v:59:y:2025:i:1:p:122-146:n:1010

DOI: 10.2478/wsbjbf-2025-0010

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