Assessing the nexus between corporate social responsibility and environmental performance: A way forward towards sustainable development

Abstract

Although the Chinese government has effectively enacted green policies to address climate challenges, the country's heavy reliance on fossil fuels has made these problems serious barriers to China's sustainable growth. This study analyzes data from 653 Chinese manufacturing companies and examines the relationship between corporate social responsibility and environmental performance. The suggested hypotheses have been investigated by employing structural equation modeling. The results showed that there is no direct association between corporate social responsibility and the environmental performance of manufacturing firms. In comparison, it is linked to green transformational leadership and green innovation that improves environmental performance. Furthermore, the results showed that the link between corporate social responsibility and environmental performance is mediated by green innovation and green transformational leadership. The study's results provide managers and decision-makers in manufacturing businesses with critical knowledge on managing corporate social responsibility, green innovation, and green transformational leadership. Increasing internal resources to improve environmental performance may be advantageous to general managers of big manufacturing enterprises.