Corporate social responsibility adoption for achieving economic, environmental, and social sustainability performance

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22 Scopus citations

Abstract

This study contributes to the sustainable development literature by investigating the impacts of CSR barriers and drivers on its adoption and the consequential influence of CSR adoption on firm sustainability performance, encompassing economic, environmental, and social aspects, through the mediating mechanisms of green innovation (GI) and firm reputation. Survey data collected from 242 manufacturing firms in Pakistan were analyzed using covariance-based structural equation modeling. The findings reveal that CSR drivers, including compliance with government regulations, stakeholder awareness, environmental protection, and ethical values, exert a positive influence on CSR adoption. Conversely, CSR barriers, such as resource constraints, regulations and standards, policy incentives, and organizational structure, have adverse but relatively weaker effects. Furthermore, the study demonstrates that CSR adoption positively contributes to sustainability performance, with GI and firm reputation serving as vital mediating factors. These results hold significant implications for enhancing firms’ sustainable development through CSR adoption, shedding light on the factors that facilitate and impede CSR adoption within the manufacturing industry, and underscore the importance of considering mediating mechanisms.

Original languageEnglish
JournalEnvironment, Development and Sustainability
DOIs
StateAccepted/In press - 2024

Keywords

  • CSR barriers and drivers
  • Corporate social responsibility
  • Manufacturing industry
  • SEM methodologies
  • Sustainability performance

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