Environmental Corporate Social Responsibility Research Articles

Environmental Audit and CSR Practices on the Financial Performance of Small and Medium Manufacturing Companies in Indonesia

Environmental Audit and CSR Practices on the Financial Performance of Small and Medium Manufacturing Companies in Indonesia

The impact of perceived environmental corporate social responsibility on idea generation and idea implementation

Scholars have already made a few outcomes regarding the effect of environmental corporate social responsibility (ECSR) on employees’ workplace behaviors. However, research on how perceived ECSR influences employee innovation remains largely unexplored. Drawing from the social identity theory (SIT) and stakeholder theory, this research fills this gap by examining: (a) the influence of perceived ECSR on idea generation (IG). (b) the influence of perceived ECSR on idea implementation (II). (c) the moderating effects of psychological capital (PsyCap) on these relationships. Using data on 348 employees from Chinese firms, the results demonstrate that perceived ECSR effectively fosters IG and II, yet when PsyCap is high, the positive influence of perceived ECSR is stronger. Our findings offer new insights for understanding the role of ECSR perception in the employee innovation domain by revealing that perceived ECSR can generate IG and promote II, and delimiting their boundaries from a psychological perspective. In addition, our findings make several practical implications for firms to cultivate their employees’ ECSR perception and improve employees’ IG and II to achieve sustainable development.

International diversification and corporate social responsibility disclosure quality: Employee versus environmental dimensions

AbstractMultinational enterprises (MNEs) face increasing institutional complexity as they expand internationally, which has a significant effect on their corporate social responsibility (CSR) strategy. In this study, we investigate an under‐explored difference between MNEs' employee and environmental CSR disclosure quality concerning the extent to which CSR reports are indicative of substantive activities. We propose that as international diversification increases institutional complexity, MNEs lower the disclosure quality of environmental CSR yet improve the disclosure quality of employee CSR due to their different institutional implications. In addition, we examine the effect of MNEs' home country cultural differences regarding uncertainty avoidance on the relationship between international diversification and employee and environmental disclosure quality. Based on a sample of 335 global MNEs from 31 countries, we found general support for our hypotheses.

Cross-ownership and green managerial delegation contracts in a mixed oligopoly

This study examines strategic interactions between cross-ownership and managerial delegation contracts with environmental corporate social responsibility (ECSR) incentives in a mixed oligopoly. We find that private firms always utilize ECSR incentives in competing prices under cross-ownership, whereas public managers do so only when there is severe environmental damage. We also demonstrate that the ECSR incentives for welfare-weighted public managers are always lower than for their profit-weighted counterparts when they employ ECSR incentives, which leads to lower environmental damage and greater social welfare. Finally, we show that welfare-weighted public delegation increases the private firm's ECSR compared to no public delegation, which is reversed in the profit-weighted variant. Our findings suggest that the government should design an environmental incentive scheme to their public managers that can also induce private managers to behave more aggressively in abatement activities as the degree of cross-ownership increases.

Environmental corporate social responsibility practices and firm innovation: Complementarities and empirical evidence from Spanish firms

This study examines the complementarity effect of combining different types of environmental corporate social responsibility (ECSR) practices on firm innovation. We apply the complementarity approach to test whether the adoption of different ECSR practices (i.e. practices for fewer materials per unit produced [materials], less energy per unit produced [energy], or decreasing environmental impact [impact]) generates super-additive effects on firms’ innovation, measured by innovations type: adoption, new-to-the-market, and new-to-the-firm innovation. We use data from the Spanish Community Innovation Survey for the period 2009–2014. The results show that the best combination of ECSR practices depends on the innovation type. For innovation adoption, all possible combinations of the three practices produce super-additive effects; however, the complementarity patterns differ for new-to-the-market and new-to-the-firm innovations. For new-to-the-market innovation, energy practices appear to be a key factor in fostering innovation when combined with materials or impact practices. For new-to-the-firm innovation, the combination of these three ECSR practices shows complementarity effects. These findings provide useful insights for the design of corporate social responsibility strategies.

The Power of Anthropomorphic Appeals for Environmental Corporate Social Responsibility (CSR) Advertising: With Mediation of Psychological Closeness and Moderation of Typefaces

This research investigates the dynamic effectiveness of brand anthropomorphism in environmental corporate social responsibility (CSR) advertising. Using two experiments, it reveals greater intentions of consumers for environment-friendly purchases with the presence (vs. absence) of brand anthropomorphism (Study 1) and local brand (vs. global brand) anthropomorphism (Study 2) in CSR. In both studies, the psychological closeness consumers feel from brand anthropomorphism, specifically local brand anthropomorphism, serves as a mediator, particularly when these anthropomorphic appeals are paired with hand-written typefaces, not machine-written. Drawing from brand anthropomorphism literature, this study provides scholarly and practical implications, emphasizing the strategic development of brand personas in CSR advertising to optimize consumer compliance.

Environmental stewardship and corporate social responsibility: A review of case studies from the oil and gas sector

This review presents a comprehensive review of case studies focusing on environmental stewardship and corporate social responsibility (CSR) within the oil and gas sector. The oil and gas industry plays a pivotal role in global energy production, yet its operations often pose significant environmental and social challenges. In response, companies in this sector are increasingly embracing environmental stewardship and CSR principles to mitigate negative impacts and foster sustainable practices. The review examines a diverse range of case studies from various regions and contexts, highlighting both successful initiatives and notable challenges faced by oil and gas companies in integrating environmental stewardship and CSR into their operations. Key themes explored include environmental conservation efforts, community engagement, stakeholder collaboration, regulatory compliance, and technological innovation. Several case studies demonstrate innovative approaches adopted by oil and gas companies to minimize environmental degradation, such as implementing advanced technologies for emission reduction, investing in renewable energy projects, and restoring ecosystems affected by exploration and extraction activities. Moreover, successful CSR programs are showcased, emphasizing community development initiatives, education, healthcare, and infrastructure improvement projects aimed at enhancing the quality of life for local populations impacted by oil and gas operations. However, challenges persist, including balancing economic interests with environmental and social responsibilities, navigating complex regulatory landscapes, and addressing stakeholder concerns effectively. Despite these challenges, the case studies underscore the importance of proactive engagement, transparent communication, and continuous improvement in fostering environmental stewardship and CSR within the oil and gas sector. The review offers insights into best practices, lessons learned, and future directions for promoting sustainability and responsible business practices in the oil and gas industry, thereby contributing to the broader discourse on corporate environmental responsibility and societal impact mitigation.

Driving employee organizational citizenship behaviour through CSR: An empirical study in the context of luxury hotels

In the recent years, there has been a rising interest among luxury brands to be environmentally responsible and promote employee discretionary behaviour. However, the underlying mechanisms that explain why, when, and how employees demonstrate discretionary environmental attitudes and behaviour in luxury contexts are not well-known. To accelerate this discourse; the current study examines the impact of environmental corporate social responsibility (CSR) on employees' organizational citizenship behaviour towards environment. Drawing insights from social cognitive theory, this study empirically validates a conceptual model through the data collected from 406 employees of luxury hotels and analysed using structural equation modelling. The results confirm the significant effect of environmental CSR on employees' organizational citizenship behaviour towards environment. The results also reveal that employee environmental commitment and green work engagement partially mediate the proposed relationship. Moreover, contrary to expectations, gender did not moderate the influence of environmental CSR on employee environmental commitment and employee green work engagement, whereas the relationship between environmental CSR and organizational citizenship behaviour towards environment was stronger for males than females. We argue that creative environmental CSR assignments in luxury hotel chains help employees develop engagement, identification, and commitment with the environmental strategy of the hotels towards solving grave environmental problems that modern societies are grappling with.

Cross-ownership and strategic environmental corporate social responsibility under price competition

AbstractThis paper examines the impact of cross-ownership on the strategic incentive of environmental corporate social responsibility (ECSR) within a green managerial delegation contract in a triopoly market engaged in price competition. It demonstrates that bilateral cross-ownership between insiders provides weak incentives to undertake ECSR, which has a non-monotone relationship with cross-ownership shares, while it provides strong incentives for outsiders, which increases the ECSR level as cross-ownership increases. It also compares unilateral cross-ownership and finds that a firm that owns shares in its rival has a greater incentive to undertake ECSR than its partially-owned rival, while an outsider has more incentive than firms in bilateral scenarios. These findings reveal that a firm's incentive to increase a market price through ECSR critically depends on its cross-ownership share, while it decreases environmental damage and increases social welfare when the environmental damage is serious.

Corporate social responsibility, sustainable environmental practices and green innovation; perspectives from the Ghanaian manufacturing industry

As the discourse around business ethics and sustainable development intensifies, many organizations are adopting initiatives in corporate social responsibility (CSR) as a strategic tool to satisfy regulatory requirements and also stakeholder expectations. While exploring the relationship between sustainable environmental practices and green innovation, this study identifies four critical stakeholder-centered CSR activities as precursors to sustainable environmental practices using data from 404 manufacturing firms in Ghana. The data was analyzed using the partial least squares method to structural equation modeling (PLS-SEM). The results established a positively significant relationship between employee-centered CSR initiatives and sustainable environmental practices while the relationship between community-centered CSR, consumer-centered CSR and environment-centered with sustainable environmental practices CSR were each not significant. However, sustainable environmental practices were found to advance green innovation. The study further recommended a multi-dimensional stakeholder-centered approach to the practice of CSR as a strategic tool for sustainable environmental development by the leadership of manufacturing firms, policy makers and regulatory bodies.

Effects of Corporate Environmental Responsibility, CSR and CEO Shareholding on Financial Performance: Evidence from U.S.-Listed Companies

Effects of Corporate Environmental Responsibility, CSR and CEO Shareholding on Financial Performance: Evidence from U.S.-Listed Companies

Greenwashing or Game Changer of Corporatesustainability: Impact on Environment, Society, and Governance (ESG)

The argument raised in green washing research that the voluntary CESR (Corporate Environmental Social Responsibility) approach stimulates the spread of greenwashing is our keyfinding leading to ourtheory contribution. The voluntary idea of CESR remains popular in CESR literature and searches to be an unclear field which allows for misleading 'green' communication. As public awareness about green washing has increased over the last two decades, likewise has academic research, and there is now a significant amount of researchaddressing greenwashing issues. In this paper, we analyse and evaluate green washing research to provide a review of trends and progress in the field and an overview of the empirical andtheoretical findings reported in previous studies. As a result, we argue that greenwashing couldbe better prevented through a combination of voluntary and mandatory approaches. The freshapproach should encourage innovative and compelling corporate CESR activities while definingthe boundaries and regulations for their achievements and communication, as companies may break legislation by over stretching CESR reports. They are vulner able to the phenomena recognised in the literature as "green washing" because of their stake holders' perceptions. Consequently, this paper aims to exam in ethephenomena of green washing and trace its development in the current body of research.

Impact of CSR disclosure on profitability and firm performance of Malaysian halal food companies

The purpose of this study is to examine the impact of corporate social responsibility (CSR) disclosure on the profitability and firm performance of Halal food companies in Malaysia. Applying a quintitative method, the study utilised a dynamic GMM-based statistical technique for analysing the data from 75 public-listed Halal food companies in Malaysia from 2012 to 2021.The findings highlight a substantial relationship between CSR disclosure and profitability (ROA) as well as firm performance (TBQ) of Halal food companies in Malaysia. The result showed economic, environmental, and social CSR disclosures have a significant effects on ROA and TBQ in dynamic models. The outcome of the study implies that actively engaging in economic, environmental, and social CSR practices provides with a competitive advantage, contributes to long-term viability, and attracts socially conscious investors. It also emphasises the strategic importance of comprehensive CSR strategies for encouraging positive stakeholder relationships, managing diverse aspects of sustainability, and enhancing overall business success, including employee engagement and motivation.

Airline environmental sustainability actions and CSR impact on customer behavior

Sustainability and Corporate Social Responsibility (CSR) are growing concerns among passengers and airlines. However, the communication of such actions by airline companies is underexplored. Accordingly, this study aims to analyze airlines' CSR and Environmental Sustainability Actions (ESA) communications' impact on customer loyalty, through a Relationship Marketing (RM) perspective. Following a text-mining approach, 6181 Facebook comments were collected. A word frequency matrix was created from the collected data and used as input for PLS-SEM to test raised hypotheses. Results suggest that communication based on ESA and CSR positively affects behavioral loyalty and commitment. RM moderated ESA's communication impact on customer loyalty but not on the relationship between CSR communication and loyalty. These findings suggest that communicating environmental efforts positively affects customer loyalty, providing airline managers with valuable insights that should be considered within communication strategies to enhance return and customer retention.

Environmental corporate social responsibility and green dynamic capability: The moderating role of slack resources

AbstractBusinesses are struggling to gain a competitive edge by ensuring the success of ecologically friendly products. However, a notable deficiency exists in the current body of research on how organizations can improve their green dynamic capabilities and gain a competitive edge. Companies may increase their competitive advantage by actively participating in environmental corporate social responsibility activities. Therefore, this study examines the role of environmental corporate social responsibility (ECSR) in developing green dynamic capabilities (GDC), leading to green product success (GPS) and competitive advantages. Moreover, the moderating role of slack resources (SRC) is examined between ECSR and GDC. This study applied partial least squares structural equation modeling for empirical examinations by gathering data from 375 manufacturing sector managers. The outcomes explained that ECSR favorably affects GDC, and in turn, GDC positively influences GPS and competitive advantages. Moreover, the outcomes also revealed that SRC moderates the positive relationship between ECSR and GDC. The results have significant practical consequences for businesses. Companies should prioritize ECSR since it helps improve ecological efficiency and boosts the company's green capabilities and long‐term viability. Therefore, businesses need to include their GDC in their product creation processes to maintain a competitive advantage in the growing consumer market that places a high value on ecological sustainability.

Asymmetrical effect of total quality management on organisational citizenship behaviour for the environment: mediated by environmental corporate social responsibility

PurposeThe current study used the social exchange theory to examine the dimensional impact of total quality management (TQM) on the organisational citizenship behaviour for the environment (OCBE) of employees through the mediatory role of environmental corporate social responsibility (ECSR).Design/methodology/approachThe data were collected from 311 employees of ISO-14001-certified manufacturing firms in Pakistan. Both symmetrical partial least squares structural equation modelling (PLS-SEM) and asymmetrical fuzzy-set qualitative comparative analysis (fsQCA) methods were applied to test the proposed hypotheses to enhance the robustness of the results.FindingsPLS-SEM results discovered that all dimensions of TQM, like process management, leadership, human resource management, customer focus, information and analysis and strategic planning, foster the OCBE through the mediation role of ECSR. The robustness of the findings was manifold when fsQCA results complemented the results by discovering that all six dimensions have been identified as sufficient conditions and some as necessary conditions to drive the OCBE.Originality/valueThe theoretical contribution of this study sheds light on TQM's function in boosting OCBE through the mediation of ECSR. Practically, the business managers may utilise TQM as a strategy to foster the OCBE in order to mitigate environmental damages of their organisations’ operations by instilling OCBE among the employees.

Environmental Corporate Social Responsibility and Environmental Performance: The Role of Green Human Resource Management and Green Transformational Leadership

The environment issue is currently receiving a lot of attention due to the trend of economic development associated with environmental protection, especially in developing countries. Therefore, this study investigates the relationships between environmental corporate social responsibility (ESCR), green human resource management (GHRM), green transformational leadership (GTL), and environmental performance (EP) in Vietnamese manufacturing companies. The study uses partial least squares structural equation modelling (PLS-SEM) to analyze data from 168 managers who are working in Vietnamese manufacturing companies. The study results show that the ECSR positively impacts GHRM, and GHRM positively impacts EP. Furthermore, ECSR has an indirect effect on EP via the mediating role of GHRM, and the influence of GHRM on EP is moderated by GTL. Finally, the findings empirically contribute to the body of literature in the context of ECSR, EP, GHRM, and GTL, utilizing the natural resource-based view theory and the Ability, Motivation, and Opportunity (AMO) theory.

Environmental responsibility of corporate management in the Visegrad region – comparative study of the Czech Republic, Poland and Slovakia

The article presents a comprehensive investigation into the prioritisation of environment-oriented Corporate Social Responsibility (CSR) activities among companies within the Visegrad region, encompassing the Czech Republic, Poland and Slovakia. An online questionnaire featuring Likert scale questions was used to collect data from November 2022 to June 2023 on the emphasis placed on 11 distinct environment-oriented CSR activities. Analytical methods covered descriptive and inferential analyses. The study contributes original insights by focusing on the Visegrad region's corporate engagement in environmental CSR activities. The findings reveal significant disparities between countries, particularly in the domains of eco-friendly transportation solutions and investments in green technologies for environmental progress. Statistically significant differences were observed between the Czech Republic and Poland, as well as between Poland and Slovakia, there by shedding light on the diverse CSR orientations and priorities within this geographic context. These findings underscore the importance of tailored CSR strategies within the Visegrad region's corporate landscape to address environmental challenges effectively.

How Corporate Social (Ir)Responsibility Influences Employees’ Private Prosocial Behavior: An Experimental Study

AbstractThe micro-level corporate social responsibility (CSR) literature has broadly demonstrated the effects of CSR on employees’ behavior but has mostly been limited to employees’ behavior within the work domain. This business-centered focus overlooks the potential of organizations to change employees’ private social and environmental behavior and thus to address grand societal challenges. Based on the social psychology literature on moral consistency and moral balancing, we conduct three experiments to investigate whether employees’ private prosocial behavior is consistent with their organization’s corporate social (ir)responsibility or whether employees aim to balance their private prosocial behavior, e.g., by compensating for their organization’s CSR activities with a reduced willingness to contribute outside the work domain. Our results provide support for a consistency effect such that employers’ environmental CSR activities increase employees’ donations and willingness to volunteer outside work. Environmental corporate social irresponsibility activities, on the contrary, reduce employees’ private donations and willingness to volunteer. We further find that the positive effects of environmental CSR are partly explained by the strengthening of employees’ environmental self-identity. Our findings highlight that organizational activities have consequences for employees’ moral behavior outside the work domain and thus have important implications for research and practice.

Going green! Factors influencing green competitive advantage of Chinese SMEs: a moderated-mediated perspective.

This research observes the impact of environmental corporate social responsibility (CSR) and green supply chain management (GSCM) on green competitive advantage in Chinese manufacturing SMEs. Top management commitment is used as a mediator between environmental CSR, GSCM, and green competitive advantage. Moreover, a pro-environmental business strategy is used as a moderator between top management commitment and green competitive advantage. A simple random sampling technique was used, and 331 questionnaires were part of the final analysis. PLS-SEM is used for hypothesis testing. The results reveal that environmental CSR does not influence green competitive advantage. GSCM, top management commitment, and pro-environmental business strategy significantly measure green competitive advantage. Top management commitment significantly mediates between environmental CSR, GSCM, and green competitive advantage. Finally, a pro-environmental business strategy significantly moderates between top management commitment and green competitive advantage. This study strives to provide insightful information for strategic managers of Chinese manufacturing SMEs to optimize green competitive advantage, including environmental CSR, GSCM, top management commitment, and pro-environmental business strategy in decision-making. This study adds value to the body of knowledge by concentrating on factors that determine green competitive advantage. This initial research integrates environmental CSR, GSCM, top management commitment, pro-environmental business strategy, and green competitive advantage in a single framework using natural resource-based view (RBV). Furthermore, the study would present various implications for managers and lines for future directions.