Unleashing the Role of CSR and Employees’ Pro-Environmental Behavior for Organizational Success: The Role of Connectedness to Nature

Wang Hongxin, Mohammed Arshad Khan, Jian Zhenqiang, Laura Cismaș, Mohammad Athar Ali, Usama Saleem and Lucia Negruț
Additional contact information
Wang Hongxin: School of Economics and Management, Wuhan University, Wuhan 430072, China
Mohammed Arshad Khan: Accounting Department, College of Administrative and Financial Sciences, Saudi Electronic University, Riyadh 11673, Saudi Arabia
Jian Zhenqiang: Institute of Quality Development Strategy, Wuhan University, Wuhan 430072, China
Mohammad Athar Ali: Department of Finance, College of Administrative and Financial Sciences, Saudi Electronic University, Riyadh 11673, Saudi Arabia
Usama Saleem: Department of Management Sciences, COMSATS University Islamabad (CUI), Islamabad 44000, Pakistan
Lucia Negruț: Faculty of Economics and Business Administration, West University of Timisoara, 300006 Timisoara, Romania

Sustainability, 2022, vol. 14, issue 6, 1-22

Abstract: Corporate social responsibility (CSR) and an organization’s financial performance are well discussed in the literature. However, the role of employees to spur the financial performance, especially the mediating effect of employees’ pro-environmental behavior between CSR and financial performance, is not well explored. Literature also shows that connectedness to nature can drive the pro-environmental behavior of individuals. However, the role of connectedness to nature in a CSR–financial performance framework has not been realized. Observing the above knowledge gaps, the current study investigates the CSR-financial performance relationship in the SME sector of a developing country with the mediating effect of employees’ pro-environmental behavior. The current study also notes the conditional indirect effect of connectedness to nature in the above-mediated relationship. A self-administered questionnaire ( n = 489) with a paper–pencil technique was employed for data collection. Structural equation modeling was considered to validate the hypothesized relationships. The findings revealed that CSR could lead an SME to a higher level of financial performance via pro-environmental behavior. It was also noted that connectedness to nature produces a significant conditional indirect effect. Such findings have seminal implications for the SME sector, which are discussed in detail. One important implication is to realize the importance of employees’ pro-environmental behavior, through CSR and connectedness to nature, to thrive the financial performance of an SME.

Keywords: CSR; ethical behavior; financial performance; sustainability; SME (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:6:p:3191-:d:766863

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