Fostering Sustainable Environmental Performance Through Green Banking Practices: The Mediating Role of Employees’ Green Motivation and Green Behavior

Tabassum Chowdhury, Rashed Al Karim (), Md Karim Rabiul, Minhaz Ul Alam and Dewan Niamul Karim
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Tabassum Chowdhury: School of Business Administration, East Delta University, Chittagong 4209, Bangladesh
Rashed Al Karim: School of Business Administration, East Delta University, Chittagong 4209, Bangladesh
Md Karim Rabiul: College of Business, Al Yamamah University, Riyadh 11512, Saudi Arabia
Minhaz Ul Alam: School of Business Administration, East Delta University, Chittagong 4209, Bangladesh
Dewan Niamul Karim: Department of Management Studies, Faculty of Business Studies, Jahangirnagar University, Savar, Dhaka 1342, Bangladesh

Sustainability, 2025, vol. 17, issue 8, 1-18

Abstract: This study intends to ascertain the correlation between green banking practices and the sustainable environmental performance of private banks. It further investigates the mediating role of employee green behavior and motivation. This study used a quantitative research method to test the study hypotheses. A standardized questionnaire with a 5-point Likert scale was utilized to collect data for the survey. The sample size consisted of 376 respondents who were conveniently selected. Data were analyzed using PLS software (Version 4.0). The main finding is that employees’ green motivation mediated the link between employee-related and customer-related green practices and a bank’s environmental performance. Equally, employee green behavior mediated the link between employee-related, operation-related, and customer-related green practices and a bank’s environmental performance. This study is one of few in Bangladesh’s banking sector that provide a comprehensive overview of green banking practices, employee green motivation and behavior, and their connections to banks’ sustainable environmental performance.

Keywords: green banking practices; bank’s environmental performances; employee green motivation; employee green behavior (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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