Taking Sustainability Initiatives for Organizational Performance: A Serial Mediation Model

Abstract

Despite its growing research popularity, corporate sustainability (CS) has received relatively little attention in terms of explaining its underlying dimensions, the so-called triple bottom line (TBL): environmental, social, and financial performance. Relying on the systems thinking view, this paper offers a comprehensive approach that enhances our understanding of these isolated TBL dimensions. Based on a sample of Turkish firms from various industries, a serial mediation model was formed, and structural equation modelling is undertaken to understand the relationships among the dimensions of CS-TBL. Thus, we holistically examine whether environmental proactivity and operational effectiveness mediate the relationship between corporate social performance and organizational performance. The collective role of both environmental proactiveness and operational effectiveness is also examined on reaching the organizational performance via taking societal initiatives. Our findings indicate that all three aspects of sustainability have mutually supportive relationships as demonstrated by positive mediating mechanisms between corporate social performance and organizational performance. The mediation results correspond with the systems thinking view (STV). They indicate that organizations need to rely on various methods to integrate and manage isolated parts of the TBL in achieving CS while building up three areas of the triple bottom line which boosts organizational performance.