Abstract:

The topicality of this study: The corporate social responsibility (CSR) became a particularly topical issue in the field of entrepreneurship since Latvia has joined the European Union in 2004, as well as for Bulgaria as the country joining the EU. All companies are asked to undertake the strategy of social responsibility and to adopt the principles of social responsibility. In the context of this study, a sustainability strategy is adjusted to the essential economic, social, environmental and cultural factors of the business environment in Latvia and Bulgaria, with the respect to the international criteria of integration of corporate social responsibility in the enterprise. The case study highlights the factors of success that can become the bases for the most efficient ways of incorporating the strategy. The aim of the study is to explore the process of implementing the strategy of corporate responsibility in one of the leading state enterprises of Latvia and, particularly, the factors contributing to the efficient integration of this strategy.

The methodology of the study: The study presents the case study in one of the leading companies in Latvia and presents data gained from the interviews with 20 experts from the diverse levels of management about the process of incorporating the strategy in praxis. The study highlights the factors of success and obstacles of integrating such a strategy of corporate social responsibility.

The authors offer suggestions for incorporating such a strategy for enterprises in Latvia and Bulgaria with the aim to foster sustainable regional development. The authors conclude that corporate social responsibility in enterprises needs to become an integral part of the sustainability strategy that fosters smart regional development. It was concluded that implementing the strategy of a corporate responsibility requires a sustainable mindset and the whole institutional approach with the involvement of all stakeholders.
The pedagogical implications is to educate responsible citizens who will be equipped to implement the strategy of corporate social responsibility. Responsible citizens have knowledge about their role in their communities, enterprise, and in a bigger world. They will participate in the activities that allow implementing the idea of societal responsibility in their workplaces and will become the agents of change while acting against injustices. The article highlights the ways and strategies of developing employees social responsibility as an essential factor in fostering sustainable development.

Keywords:

Sustainable regional development, smart governance, corporate societal responsibility.