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Environmental Risk Management Strategies and the Moderating Role of Corporate Social Responsibility in Project Financing Decisions

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  • Muddassar Sarfraz

    (Department of Management and HR, Business School, Hohai University, Nanjing 211100, China)

  • Wang Qun

    (Department of Management and HR, Business School, Hohai University, Nanjing 211100, China
    Jiangsu Provincial Collaborative Center of World Water Valley and Water Ecological Civilization, Nanjing 211100, China)

  • Li Hui

    (Department of Management and HR, Business School, Hohai University, Nanjing 211100, China
    Jiangsu Provincial Collaborative Center of World Water Valley and Water Ecological Civilization, Nanjing 211100, China)

  • Muhammad Ibrahim Abdullah

    (Department of Management Sciences, COMSATS Institute of Information Technology, Lahore 54000, Pakistan)

Abstract

The purpose of this study is to examine the moderating role of corporate social responsibility (CSR) in project financing decisions. CSR has gained growing prominence in today’s business era. This study investigates four environmental strategies and the credit risk assessment, stakeholder assessment and corporate social responsibility assessment impact on project financing decision. It explores three main issues related to environmental responsibility (planet), economic responsibility (profit) and social responsibility (people). The study is explanatory and quantitative, and both domestic and foreign banks participated in the data collection process. The sample size for the study is 491 participants. Data was collected through a simple random sampling technique and was analyzed by applying simple linear regression, confirmatory factor analysis (CFA) and structural equation modeling analysis (SEM) through the Statistical Package for the Social Sciences (SPSS). The study shows that the Pakistani banking sector is implementing environmental management policies. Foreign banks are more motivated towards corporate social responsibility practices. Cultural differences can influence a manager’s attitude towards implementation of environmental risk-management policies. The result shows that corporate social responsibility has a moderating role in project financing decisions and environmental risk management, stakeholder and credit risk assessment. All hypotheses has significant values.

Suggested Citation

  • Muddassar Sarfraz & Wang Qun & Li Hui & Muhammad Ibrahim Abdullah, 2018. "Environmental Risk Management Strategies and the Moderating Role of Corporate Social Responsibility in Project Financing Decisions," Sustainability, MDPI, vol. 10(8), pages 1-17, August.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:8:p:2771-:d:162123
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    Cited by:

    1. Shihong Zeng & Yujia Qin & Guowang Zeng, 2019. "Impact of Corporate Environmental Responsibility on Investment Efficiency: The Moderating Roles of the Institutional Environment and Consumer Environmental Awareness," Sustainability, MDPI, vol. 11(17), pages 1-21, August.
    2. Muddassar Sarfraz & Larisa Ivascu & Radian Belu & Alin Artene, 2021. "Accentuating the interconnection between business sustainability and organizational performance in the context of the circular economy: The moderating role of organizational competitiveness," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 2108-2118, May.
    3. Muddassar Sarfraz & Muhammad Mohsin & Sobia Naseem & Amit Kumar, 2021. "Modeling the relationship between carbon emissions and environmental sustainability during COVID-19: a new evidence from asymmetric ARDL cointegration approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(11), pages 16208-16226, November.
    4. Xin Liu, 2019. "The Role of Enterprise Risk Management in Sustainable Decision-Making: A Cross-Cultural Comparison," Sustainability, MDPI, vol. 11(10), pages 1-15, May.
    5. Juan Camilo Mejia-Escobar & Juan David González-Ruiz & Eduardo Duque-Grisales, 2020. "Sustainable Financial Products in the Latin America Banking Industry: Current Status and Insights," Sustainability, MDPI, vol. 12(14), pages 1-25, July.
    6. Ovidiu-Ioan Moisescu & Oana-Adriana Gică, 2020. "The Impact of Environmental and Social Responsibility on Customer Loyalty: A Multigroup Analysis among Generations X and Y," IJERPH, MDPI, vol. 17(18), pages 1-21, September.
    7. M. Isabel Sánchez-Hernández & Juan José Maldonado-Briegas, 2019. "Sustainable Entrepreneurial Culture Programs Promoting Social Responsibility: A European Regional Experience," Sustainability, MDPI, vol. 11(13), pages 1-19, July.
    8. Waqas Ali & Shujahat Ali & Shahid Mehmood, 2020. "Effect of Risk Management Practices on Banks Performance Moderating Role of Managerial Expertise as a Competitive Edge," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 16(1), pages 88-100.
    9. Mengli Gao & Muddassar Sarfraz & Wasi Ul Hassan Shah, 2023. "The “Double-Edged Sword” Effect of Personal Relationships between Boundary Personnel on Enterprise Opportunistic Behavior in Cooperative Innovation," Sustainability, MDPI, vol. 15(5), pages 1-18, March.
    10. Jau-Yang Liu, 2018. "An Internal Control System that Includes Corporate Social Responsibility for Social Sustainability in the New Era," Sustainability, MDPI, vol. 10(10), pages 1-27, September.
    11. Muhammad Mohsin & Sobia Naseem & Muhammad Zia‐ur‐Rehman & Sajjad Ahmad Baig & Shazia Salamat, 2023. "The crypto‐trade volume, GDP, energy use, and environmental degradation sustainability: An analysis of the top 20 crypto‐trader countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 651-667, January.
    12. Galletta, Simona & Mazzù, Sebastiano & Naciti, Valeria, 2022. "A bibliometric analysis of ESG performance in the banking industry: From the current status to future directions," Research in International Business and Finance, Elsevier, vol. 62(C).
    13. Waqas Ali & Shujahat Ali & Shahid Mehmood, 2020. "Effect of Risk Management Practices on Banks Performance Moderating Role of Managerial Expertise as a Competitive Edge," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 16(1), pages 16-17.
    14. Juan J. Nájera-Sánchez, 2019. "A Systematic Review of Sustainable Banking through a Co-Word Analysis," Sustainability, MDPI, vol. 12(1), pages 1-23, December.

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