Should Consumer Goods Companies Engage in Social Good Programs? Evidence from Latin America

Abstract

This paper examines whether both local and global consumer goods companies should engage in social good programs in Latin America. Although numerous global studies highlight the generally positive impact of corporate social responsibility (CSR), there is still limited empirical evidence focused specifically on this region. Existing findings suggest a persistent consumer bias against companies with strong commercial profiles, particularly multinational corporations operating in extractive industries, whose social good initiatives (SGI) are often perceived as self-serving. This perception can diminish the intended positive impact of SGI efforts, not only in those sectors but also across other industries in the region. While many consumer goods companies (CPGs) have developed extensive CSR investments through many social good initiatives worldwide, there are comparatively few cases of local Latin American companies implementing similar strategies. Despite SGI being a factor in shaping consumer preferences in the region, local CPGs continue to face structural challenges, including a lack of organizational capabilities, limited access to resources, and heightened consumer skepticism rooted in historical distrust toward large corporations ( RSM Latin America, 2024 ). In global companies, CPG companies face additional challenges associated with their multinational status and the legacy of extractive industries, which amplifies public scrutiny of their motives. Using a mixed-methods approach that combines a literature review and consumer surveys conducted with 210 participants across Peru, Mexico, and Colombia, this study seeks to identify the perceived effects of SGI and the key factors shaping consumer attitudes toward both global and local brands engaged in social good initiatives. The findings aim to contribute to a better understanding of how contextual, cultural, and historical factors influence the reception and effectiveness of SGI in emerging Latin American markets.