How does Corporate Social Environment contribute to firm sustainability

Abstract

Corporate social environment is essential for a firm's and employees' Sustainability. Corporate social capital is an intangible potential asset of a firm. This Study investigates the impact of Corporate social environment on Firm sustainability the mediator role of social capital. The study used 266 Pakistan stock exchange-listed firms data from 2011 to 2020 and estimated impact through Regression least square method and GMM. Robust least square test used for validity and sustainability of results. The results of Regression least square and GMM confirmed that the Corporate social environment has high significant positive impact on Firm sustainability. Social capital has intangible resource of the firm and their role as mediator is highly positive significance that enhances employee’s social activity and firm outcomes. The robustness test confirmed results are valid and sustainable. Recommendations are cleared and suggest more focus on employees' social activities, essential requirements, support, and motivation because social capital produce employees self-efficacy and enhances Firm sustainability, Firms appealing to more investments and higher financial performance; investors are aware of the importance of social, firm environmental and employees concerns.