Embedding Corporate Social Responsibility in Retail Strategy: Strategic, Sustainable, and Localized Approaches to Building Brand Equity and Loyalty

Abstract

Corporate Social Responsibility (CSR) has evolved from philanthropy to a strategic capability, but its role in recovering economies remains underexplored. This study examines how CSR strategies affect consumer perceptions in the Greek retail sector, where firms face fragile trust and constrained resources. Using survey data from 322 consumers, the research tested three drivers of CSR effectiveness: strategic integration into core business and community engagement, emphasis on sustainability-oriented initiatives, and localization to cultural and stakeholder expectations. Data were analyzed through exploratory factor analysis to validate the constructs, followed by hierarchical multiple regression to assess their influence on perceived CSR performance. Results showed that CSR embedded transparently into strategy had strong effects on consumers’ overall evaluations of CSR effectiveness, sustainability-oriented actions emerged as the most powerful predictor of perceived CSR performance, and localized initiatives enhanced trust and authenticity by signaling responsiveness to community needs. Perceived CSR performance was conceptualized as an integrative construct, capturing outcomes such as brand equity, consumer engagement, and loyalty in a unified evaluative measure. These findings suggest that CSR is a credible driver of consumer value even during economic recovery and that its effectiveness depends on authenticity, environmental relevance, and cultural fit. The study offers theoretical contributions by contextualizing CSR in fragile markets and provides practical guidance for retailers seeking resilience through responsible, strategically aligned practices.