Corporate Social Responsibility and Environmental Sustainability: Integrating Green Practices into Operations

Abstract

The objective of this research was to examine the impact of corporate social responsibility (CSR) practices on environmental sustainability. Additionally, the study investigated the role of green operations practices as a mediator and green transformational leadership as a moderator within the context of small and medium enterprises (SMEs) in Saudi Arabia. Employing a cross-sectional research design, data were collected through self-administered questionnaires from 340 employees of SMEs in Saudi Arabia using a convenience sampling technique. The quantitative research approach and convenience sampling techniques were utilized for this study. The Partial Least Squares Structural Equation Modelling (PLS-SEM) results indicated that the dimensions of CSR have a positive and significant impact on both environmental sustainability and green operations practices. Moreover, the analysis of indirect mediating effects demonstrated that green operations practices partially mediate the relationship between CSR dimensions and environmental sustainability. Additionally, green transformational leadership was found to have a positive and significant moderating effect on the relationship between green operations practices and environmental performance. This study, through its mediated-moderated model, makes a significant contribution to the existing literature by being the first to test this extended model in the context of Saudi Arabian SMEs. The findings of this research can also inform policy-makers about the critical importance of corporate social responsibility in enhancing business sustainability.