From commitment to action: unraveling the pathways from top management commitment to environmental sustainability in the Chinese banking sector

Huawei Tian, Abu Bakkar Siddik () and Farid Ahammad Sobhani
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Huawei Tian: Zhoukou Normal University
Abu Bakkar Siddik: University of Science and Technology of China (USTC)
Farid Ahammad Sobhani: United International University

Palgrave Communications, 2024, vol. 11, issue 1, 1-12

Abstract: Abstract This study examines the relationships between top management commitment (TMC), green investment (GI), corporate social responsibility (CSR) practices, environmental strategy (ES), and their collective impact on environmental sustainability performance (ESP) within the banking sector in China. Grounded in stakeholder theory, the research employed a structured online survey, targeting employees of Chinese banking institutions. The data were collected from a sample of 373 respondents and subsequently analyzed using structural equation modeling (SEM). The key findings revealed that TMC positively influences GI, CSR practices, and ES within the scrutinized institutions. Furthermore, GI was found to significantly enhance ESP, CSR practices, and ES. Additionally, both CSR practices and ES positively influenced ESP, while also serving as full mediators in the relationship between GI and ESP. The findings of this study provide both theoretical contributions and practical implications for researchers, practitioners, and policymakers in the domain of organizational environmental sustainability. This study significantly advances the understanding of how leadership commitment and strategic investments interact to drive environmental sustainability within the banking sector.

Date: 2024
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DOI: 10.1057/s41599-024-04142-7

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