Unveiling the impact on corporate social responsibility through green tax and green financing: a PLS-SEM approach.

Abstract

In today's global business landscape, the concepts of green financing and green tax have become pivotal instruments for fostering environmentally responsible practices. The purpose of 20this study is to comprehensively assess how green financing and green tax collectively influence CSR through various dimensions, including employees, customers, and communities. This research employs a partial least squares structural equation modeling (PLS-SEM) approach, which allows for a rigorous analysis of the complex relationships between the variables involved. Data is collected through surveys, enabling a quantitative evaluation of the impacts and interdependencies. The results indicate that green financing has a positive and significant impact on CSR through customer (β = 0.609), employee (β = 0.522), and community (β = 0.509) dimensions. The results also show that green tax has a positive and significant impact on CSR through customer (β = 0.183), employee (β = 0.182), and community (β = 0.296) dimensions. The findings of this study provide a deeper understanding of how green financing and green tax practices correlate with CSR, both separately and collectively. The implications of this research extend to multiple stakeholders. For businesses, the results offer strategic insights into how environmentally conscious financial practices align with CSR objectives. Policymakers can draw upon the findings to craft effective regulatory frameworks that incentivize sustainable business behavior. Additionally, stakeholders gain valuable insights into how businesses can harmonize economic success with environmental stewardship, promoting engagement with socially responsible entities. This research marks a distinct contribution to the academic landscape by delving into the synergistic impact of green financing and green tax on CSR, particularly within the distinctive context of Bangladesh. In doing so, it successfully addresses a noticeable void within the existing literature, providing fresh insights into the intricate dynamics and opportunities confronting businesses in developing nations.