Consumer perceptions of corporate social responsibility activities performed by companies in Malta

Abstract

This study provides an insight into the perceptions and attitudes of Maltese consumers with regards to companies that conduct societal welfare activities. This study researches the extent to which CSR produces positive perceptions from its customers and its influence on their purchasing behaviour. Consumer perceptions were measured by means of setting up two scenarios which presented participants with two opposing levels of CSR activity by firms. This experiment was conducted online, with the use of questionnaires. The results that were produced from this study showed that customers generally produce positive perceptions towards firms that conduct CSR activities. They also highlight three main concerns that they deem to be most important above all others; societal and environmental concerns, and the fair treatment of employees. On the other hand, the study provided evidence that suggests that whilst CSR produces a positive perception, it does not influence their willingness to purchase products. CSR does not entice consumers as a standalone factor, but must be incorporated into the firms offering that includes both quality products and fair pricing. There are two main limitations that must be taken into consideration. Firstly, the study was conducted using online means only, notably social media. This means that the offline segment of the population was not exposed to the survey. Secondly, not all the individuals who took part in the study were aware about the meaning of CSR, providing a certain level of unreliability to their responses. There is little known about the perceptions of consumers on CSR in Malta, and much more needs to be done to understand the implications of conducting societal welfare activities. This study provides an initial insight into this topic, allowing firms to assess the potential benefits of CSR.