Driving sustainable performance: the role of corporate ethical and legal responsibility in fostering environmental and social performance

Syed Muhammad Abbas, Muhammad Shahid Tufail, Moazzam Latif, Yasir Iftikhar and Amir Shahzad

Social Responsibility Journal, 2026, vol. 22, issue 9, 1921-1939

Abstract: PurposeThis study aims to examine the impact of corporate ethical and legal responsibility on environmental and social performance (SP). In addition, it investigates the mediating role of green innovation (GI) in these relationships. Furthermore, the study explores the moderating effect of ethical leadership (EL) on the link between corporate ethical and legal responsibility and GI.Design/methodology/approachA quantitative research approach was adopted, using survey data collected from 580 respondents working in small and medium enterprises (SMEs) in Pakistan. Structural equation modeling was applied using Smart PLS to test the proposed hypotheses and validate the theoretical framework.FindingsThe results reveal that corporate ethical and legal responsibility significantly enhances environmental and SP, with GI playing a crucial mediating role. In addition, EL strengthens the relationship between corporate ethical and legal responsibility and GI, reinforcing its impact on social and environmental performance.Originality/valueThis study contributes to the literature on corporate social responsibility, sustainability and leadership by providing empirical evidence on the role of corporate ethical and legal responsibility in promoting GI and enhancing environmental and SP. The findings offer valuable insights for policymakers, business leaders and SMEs aiming to implement sustainable corporate practices.

Keywords: Corporate ethical responsibility; Corporate legal responsibility; Green innovation; Ethical leadership; Environmental and social performance (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:srjpps:srj-09-2025-0906

DOI: 10.1108/SRJ-09-2025-0906

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