IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i20p13607-d948725.html
   My bibliography  Save this article

Corporate Social Responsibility, Green Finance and Environmental Performance: Does Green Innovation Matter?

Author

Listed:
  • Xiaofei Dai

    (School of Economics and Management, Zhoukou Normal University, Zhoukou 466000, China
    Graduate School of Business, SEGI University, Petaling Jaya 47810, Selangor, Malaysia
    These authors contributed equally to this work.)

  • Abu Bakkar Siddik

    (School of Management, University of Science and Technology of China (USTC), Jinzhai Road, Hefei 230026, China
    These authors contributed equally to this work.)

  • Huawei Tian

    (School of Economics and Management, Zhoukou Normal University, Zhoukou 466000, China)

Abstract

This study aims to examine the impact of Corporate Social Responsibility (CSR) and Green Finance (GI) on the Environmental Performance (EP) of banking institutions in emerging markets like Bangladesh. The study also examines the role of green innovation (GI) as a mediator in the existent relationship between CSR, GF and EP. Data were obtained from 357 bankers of commercial banks in Bangladesh through the aid of structured questionnaires. A structural equation modeling approach was employed in the investigation of the obtained primary data, and results revealed that CSR had a significant positive impact on GI and EP, while GI strongly enhances EP. Besides, the findings revealed that GF had a significant positive influence on GI and EP. Furthermore, the research data indicated that GI fully mediates the link between CSR and EP, and GF and EP significantly. The study highlights the importance of CSR dimensions (social, economic and environmental), GF and GI in the attainment of EP, as well as the urgent need to incorporate sustainability into banking strategies to help achieve the country’s long-term economic development. As a result, major policy implications were further addressed.

Suggested Citation

  • Xiaofei Dai & Abu Bakkar Siddik & Huawei Tian, 2022. "Corporate Social Responsibility, Green Finance and Environmental Performance: Does Green Innovation Matter?," Sustainability, MDPI, vol. 14(20), pages 1-17, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13607-:d:948725
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/20/13607/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/20/13607/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Abiodun Adegbile & David Sarpong & Dirk Meissner, 2017. "Strategic Foresight for Innovation Management: A Review and Research Agenda," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 14(04), pages 1-34, August.
    2. Muttanachai Suttipun & Pankaewta Lakkanawanit & Trairong Swatdikun & Wilawan Dungtripop, 2021. "The Impact of Corporate Social Responsibility on the Financial Performance of Listed Companies in Thailand," Sustainability, MDPI, vol. 13(16), pages 1-14, August.
    3. Hua-Hung (Robin) Weng & Ja-Shen Chen & Pei-Ching Chen, 2015. "Effects of Green Innovation on Environmental and Corporate Performance: A Stakeholder Perspective," Sustainability, MDPI, vol. 7(5), pages 1-30, April.
    4. Hao, Jing & He, Feng, 2022. "Corporate social responsibility (CSR) performance and green innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 48(C).
    5. Nurlan Orazalin, 2020. "Do board sustainability committees contribute to corporate environmental and social performance? The mediating role of corporate social responsibility strategy," Business Strategy and the Environment, Wiley Blackwell, vol. 29(1), pages 140-153, January.
    6. Ma Ying & Gashaw Awoke Tikuye & He Shan, 2021. "Impacts of Firm Performance on Corporate Social Responsibility Practices: The Mediation Role of Corporate Governance in Ethiopia Corporate Business," Sustainability, MDPI, vol. 13(17), pages 1-21, August.
    7. Singh, Sanjay Kumar & Giudice, Manlio Del & Chierici, Roberto & Graziano, Domenico, 2020. "Green innovation and environmental performance: The role of green transformational leadership and green human resource management," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    8. Khalid M. Al-Shuaibi, 2016. "A Structural Equation Model of CSR and Performance: Mediation by Innovation and Productivity," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 6(2), pages 139-153, June.
    9. Fatema Khairunnessa & Diego A. Vazquez-Brust & Natalia Yakovleva, 2021. "A Review of the Recent Developments of Green Banking in Bangladesh," Sustainability, MDPI, vol. 13(4), pages 1-21, February.
    10. Xin Zhang & Zhihui Wang & Xiaobing Zhong & Shouzhi Yang & Abu Bakkar Siddik, 2022. "Do Green Banking Activities Improve the Banks’ Environmental Performance? The Mediating Effect of Green Financing," Sustainability, MDPI, vol. 14(2), pages 1-18, January.
    11. Ait Sidhoum, Amer & Serra, Teresa, 2017. "Corporate social responsibility and dimensions of performance: An application to U.S. electric utilities," Utilities Policy, Elsevier, vol. 48(C), pages 1-11.
    12. Zhou, Guangyou & Sun, Yongkun & Luo, Sumei & Liao, Jiayi, 2021. "Corporate social responsibility and bank financial performance in China: The moderating role of green credit," Energy Economics, Elsevier, vol. 97(C).
    13. Jaffar Abbas & Shahid Mahmood & Hashim Ali & Muhammad Ali Raza & Ghaffar Ali & Jaffar Aman & Shaher Bano & Mohammad Nurunnabi, 2019. "The Effects of Corporate Social Responsibility Practices and Environmental Factors through a Moderating Role of Social Media Marketing on Sustainable Performance of Business Firms," Sustainability, MDPI, vol. 11(12), pages 1-33, June.
    14. Ferreira, João J.M. & Fernandes, Cristina I. & Ferreira, Fernando A.F., 2020. "Technology transfer, climate change mitigation, and environmental patent impact on sustainability and economic growth: A comparison of European countries," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    15. Xiuping Li & Ye Yang, 2022. "Does Green Finance Contribute to Corporate Technological Innovation? The Moderating Role of Corporate Social Responsibility," Sustainability, MDPI, vol. 14(9), pages 1-17, May.
    16. Yunyue Zhou & Chengli Shu & Wei Jiang & Shanxing Gao, 2019. "Green management, firm innovations, and environmental turbulence," Business Strategy and the Environment, Wiley Blackwell, vol. 28(4), pages 567-581, May.
    17. Edeh, Jude Ndubuisi & Obodoechi, Divine Ndubuisi & Ramos-Hidalgo, Encarnación, 2020. "Effects of innovation strategies on export performance: New empirical evidence from developing market firms," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    18. Yu-Shan Chen & Shyh-Bao Lai & Chao-Tung Wen, 2006. "The Influence of Green Innovation Performance on Corporate Advantage in Taiwan," Journal of Business Ethics, Springer, vol. 67(4), pages 331-339, September.
    19. Li, Zhihui & Deng, Xiangzheng & Peng, Lu, 2020. "Uncovering trajectories and impact factors of CO2 emissions: A sectoral and spatially disaggregated revisit in Beijing," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    20. Guang-Wen Zheng & Abu Bakkar Siddik & Mohammad Masukujjaman & Nazneen Fatema, 2021. "Factors Affecting the Sustainability Performance of Financial Institutions in Bangladesh: The Role of Green Finance," Sustainability, MDPI, vol. 13(18), pages 1-27, September.
    21. Chiou, Tzu-Yun & Chan, Hing Kai & Lettice, Fiona & Chung, Sai Ho, 2011. "The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 822-836.
    22. Guang-Wen Zheng & Abu Bakkar Siddik & Mohammad Masukujjaman & Nazneen Fatema & Syed Shah Alam, 2021. "Green Finance Development in Bangladesh: The Role of Private Commercial Banks (PCBs)," Sustainability, MDPI, vol. 13(2), pages 1-17, January.
    23. Nana Liu & Chuanzhe Liu & Yufei Xia & Yi Ren & Jinzhi Liang, 2020. "Examining the Coordination Between Green Finance and Green Economy Aiming for Sustainable Development: A Case Study of China," Sustainability, MDPI, vol. 12(9), pages 1-26, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jianmu Ye & Efifania Dela, 2023. "The Effect of Green Investment and Green Financing on Sustainable Business Performance of Foreign Chemical Industries Operating in Indonesia: The Mediating Role of Corporate Social Responsibility," Sustainability, MDPI, vol. 15(14), pages 1-28, July.
    2. Lei Wang & Amin Ur Rehman & Zhaocheng Xu & Fiza Amjad & Shams Ur Rehman, 2023. "Green Corporate Governance, Green Finance, and Sustainable Performance Nexus in Chinese SMES: A Mediation Moderation Model," Sustainability, MDPI, vol. 15(13), pages 1-17, June.
    3. Pingguo Xu & Leyi Chen & Huajuan Dai, 2022. "Pathways to Sustainable Development: Corporate Digital Transformation and Environmental Performance in China," Sustainability, MDPI, vol. 15(1), pages 1-21, December.
    4. Ya Cheng & Mohammad Masukujjaman & Farid Ahammad Sobhani & Muhammad Hamayun & Syed Shah Alam, 2023. "Green Logistics, Green Human Capital, and Circular Economy: The Mediating Role of Sustainable Production," Sustainability, MDPI, vol. 15(2), pages 1-22, January.
    5. Zhai, Wei, 2023. "Risk assessment of China's foreign direct investment in "One Belt, One Road": Taking the green finance as a research perspective," Socio-Economic Planning Sciences, Elsevier, vol. 87(PB).
    6. Jiangjun Li & Tao Fu & Shengyue Han & Rui Liang, 2023. "Exploring the Impact of Corporate Social Responsibility on Financial Performance: The Moderating Role of Media Attention," Sustainability, MDPI, vol. 15(6), pages 1-16, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kraus, Sascha & Rehman, Shafique Ur & García, F. Javier Sendra, 2020. "Corporate social responsibility and environmental performance: The mediating role of environmental strategy and green innovation," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    2. repec:thr:techub:10031:y:2022:i:1:p:522-552 is not listed on IDEAS
    3. Yan lI, 2022. "Corporate Social Responsibility of Chinese Manufacturing Companies' effect on Green Business Strategy, Innovation and Performance," Technium Social Sciences Journal, Technium Science, vol. 31(1), pages 522-552, May.
    4. Abu Elnasr E. Sobaih & Ahmed Hasanein & Ibrahim Elshaer, 2020. "Influences of Green Human Resources Management on Environmental Performance in Small Lodging Enterprises: The Role of Green Innovation," Sustainability, MDPI, vol. 12(24), pages 1-19, December.
    5. Wang, Quan-Jing & Wang, Hai-Jie & Chang, Chun-Ping, 2022. "Environmental performance, green finance and green innovation: What's the long-run relationships among variables?," Energy Economics, Elsevier, vol. 110(C).
    6. Xinyue Hao & Fanglin Chen & Zhongfei Chen, 2022. "Does green innovation increase enterprise value?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1232-1247, March.
    7. Xinwei Li & Wenjuan Zeng & Mao Xu, 2022. "The Moderating Role of IT Capability on Green Innovation and Ambidexterity: Towards a Corporate Sustainable Development," Sustainability, MDPI, vol. 14(24), pages 1-20, December.
    8. Mercedes Úbeda‐García & Bartolome Marco‐Lajara & Patrocinio C. Zaragoza‐Sáez & Encarnación Manresa‐Marhuenda & Esther Poveda‐Pareja, 2022. "Green ambidexterity and environmental performance: The role of green human resources," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(1), pages 32-45, January.
    9. Anu, & Singh, Amit Kumar & Raza, Syed Ali & Nakonieczny, Joanna & Shahzad, Umer, 2023. "Role of financial inclusion, green innovation, and energy efficiency for environmental performance? Evidence from developed and emerging economies in the lens of sustainable development," Structural Change and Economic Dynamics, Elsevier, vol. 64(C), pages 213-224.
    10. Tantayanubutr, Monika & Panjakajornsak, Vinai, 2017. "Impact of green innovation on the sustainable performance of Thai food industry," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 13(2).
    11. Mohammad Abul Kalam Azad & Md. Aminul Islam & Farid Ahammad Sobhani & Md. Sharif Hassan & Mohammad Masukujjaman, 2022. "Revisiting the Current Status of Green Finance and Sustainable Finance Disbursement: A Policy Insights," Sustainability, MDPI, vol. 14(14), pages 1-14, July.
    12. Xie, Xuemei & Han, Yuhang & Hoang, Thu Thao, 2022. "Can green process innovation improve both financial and environmental performance? The roles of TMT heterogeneity and ownership," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    13. Huang, Yi-Chun & Chen, Chih Ta, 2022. "Exploring institutional pressures, firm green slack, green product innovation and green new product success: Evidence from Taiwan's high-tech industries," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    14. He, Feng & Yan, Yulin & Hao, Jing & Wu, Ji (George), 2022. "Retail investor attention and corporate green innovation: Evidence from China," Energy Economics, Elsevier, vol. 115(C).
    15. Chen Liu & Dongmin Kong, 2021. "Business strategy and sustainable development: Evidence from China," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 657-670, January.
    16. Chenli Yin & Maria Paz Salmador & Dan Li & M. Begoña Lloria, 2022. "Green entrepreneurship and SME performance: the moderating effect of firm age," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 255-275, March.
    17. Chao Hung Wang, 2020. "An environmental perspective extends market orientation: Green innovation sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3123-3134, December.
    18. Singh, Sanjay Kumar & Giudice, Manlio Del & Chierici, Roberto & Graziano, Domenico, 2020. "Green innovation and environmental performance: The role of green transformational leadership and green human resource management," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    19. Ayça Kubra Hizarci‐Payne & İlayda İpek & Gülüzar Kurt Gümüş, 2021. "How environmental innovation influences firm performance: A meta‐analytic review," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1174-1190, February.
    20. Ali Saleh Alshebami, 2023. "Green Innovation, Self-Efficacy, Entrepreneurial Orientation and Economic Performance: Interactions among Saudi Small Enterprises," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    21. Guang-Wen Zheng & Abu Bakkar Siddik & Mohammad Masukujjaman & Nazneen Fatema, 2021. "Factors Affecting the Sustainability Performance of Financial Institutions in Bangladesh: The Role of Green Finance," Sustainability, MDPI, vol. 13(18), pages 1-27, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13607-:d:948725. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.