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Nexus between corporate social responsibility and firm performance: a green innovation and environmental sustainability paradigm

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Abstract

Climate change concerns have become severe challenges in developing countries’ sustainable development due to the immense usage of fossil fuels. The government has effectively employed green practices to solve these challenges in developing countries. This study explores how corporate social responsibility influences firm performance by analyzing the data collected from 650 respondents of manufacturing firms in a developing country, i.e., China. Structural equation modeling has been applied to analyze and investigate the proposed hypotheses. The results showed that corporate social responsibility does not directly affect the firm performance. In contrast, corporate social responsibility is positively related to green transformational leadership and green innovation, which improve firm performance. The results further indicated that green innovation and green transformational leadership significantly mediate the link between corporate social responsibility and firm performance. This study offers essential insights for managers and policymakers of manufacturing firms in managing corporate social responsibility, green innovation, and green transformational leadership when analyzing firm performance. It may aid general managers of major manufacturing firms in strengthening internal resources to improve the firm performance.

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All data generated or analyzed during this study are included in this article.

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Authors and Affiliations

Authors

Contributions

N. Nureen: conceptualization, writing—original draft, and methodology. L. Da: supervision and funding acquisition. M. Irfan: formal analysis, data handling, methodology, and writing—review and editing. Cem Işik: writing-review and editing and variable construction.

Corresponding author

Correspondence to Muhammad Irfan.

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Ethics approval and consent to participate

This research study was conducted according to the Declaration of Helsinki guidelines. The Institutional Review Board of North China Electric Power University has approved the study (protocol code 748–6 on 26 March 2022).

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Informed consent was obtained from all respondents belonging to this research study.

Competing interests

The authors declare no competing interests.

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Responsible Editor: Arshian Sharif

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Nureen, N., Liu, D., Irfan, M. et al. Nexus between corporate social responsibility and firm performance: a green innovation and environmental sustainability paradigm. Environ Sci Pollut Res 30, 59349–59365 (2023). https://doi.org/10.1007/s11356-023-26675-1

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  • DOI: https://doi.org/10.1007/s11356-023-26675-1

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