Exploring the multi-dimensional impacts of corporate social responsibility: The role of market competition as a moderator

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Abstract

The current study investigates the broader impacts of corporate social responsibility (CSR) adoption, moving beyond its economic and financial outcomes to explore its influence on brand image, customers, employees, and how this implementation is affected by market competition. The study deploys a pioneer, holistic approach to examine CSR engagement across various dimensions, including workforce, environment, suppliers, community, market, stakeholders, charities, business values, and leadership (Ashridge, 2005; Zlatanovic, 2015). For the application of this model, we chose Greece in order to address a relevant gap in the research within the country and because of the recent recession period and its impact on social initiatives. A quantitative methodology was utilized, using a convenient sample of 568 business small and medium-sized enterprises (SMEs) executives operating in Greece, gathered through LinkedIn. The study’s significance relies on the use of a holistic model to evaluate CSR adoption, its application in the Greek market, and its simultaneous benefits. This research emphasizes the multifaceted advantages of CSR and the critical role of market dynamics, providing actionable insights for marketers to strategically incorporate CSR. CSR adoption positively affects brand image, customer relations, and employee performance. However, market competition was found to moderate these relationships negatively, diminishing the positive impacts of CSR.

Keywords: Corporate Social Responsibility Adoption, Market Competition, Brand Image, Employee Performance, Customer Relations

Authors’ individual contribution: Conceptualization — E.D. and D.A.K.; Methodology — E.D.; Formal Analysis — E.D.; Writing — Original Draft — E.D.; Writing — Review & Editing — D.A.K. and A.K.; Funding Acquisition — A.K.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M14, M31

Received: 09.07.2025
Revised: 20.10.2025; 18.12.2025
Accepted: 19.01.2026
Published online: 21.01.2026

How to cite this paper: Dragotis, E., Karayanni, D. A., & Kavoura, A. (2026). Exploring the multi-dimensional impacts of corporate social responsibility: The role of market competition as a moderator. Corporate Governance and Sustainability Review, 10(1), 132–144. https://doi.org/10.22495/cgsrv10i1p12