Impacts of Environmental Responsibility and Performance on Organizational Performance: Importance of Environmental Performance

Abstract

This study evaluated the causal effect of environmental friendly activities and resultant environmental performance of enterprises on their organizational performance. More importantly, it analyzed and empirically investigated the mediation of environmental performance in the research model which has been paid no attention to in previous studies. The final research data was gathered from 399 publicly listed enterprisesin in the three main stock markets of Vietnam. Multiple regression analyses were applied to test the causal hypotheses, while mediating procedures were employed to test statistical significance for the mediation mechanism. The empirical findings reveal positive influences of environmental responsibility on organizational and environmental performance that in turn puts a positive influence on organizational performance. Environmental performance is discovered as an entirely mediating factor in the joint research model, where environmental responsibility has no direct effect on organizational performance, but only has indirect effect through environmental performance. When included into the research model, environmental performance will transmit the whole of direct effect of environmental responsibility on organizational performance.

Sustainability Environmental Performance Future Investment for Company Value

“…A regression model's data is subjected to the normality test to determine whether or not it is regularly distributed (Gracia, 2018;Huynh, 2020;White, 1980). Data processed by SPSS method (Krishna, CEO, and IBM, 2023).…”

Do Environmental Performance and Corporate Social Responsibility Disclosure Affect Financial Performance?

“…Therefore, companies must be responsible for their business activities by paying attention to the natural environment. If the quality of the environment around the company decreases, the company's business development will also be disrupted (Huynh, 2020).…”

Impact of Green Management and Earning Management of Energy Companies in Indonesia

“…This enables companies to satisfy market expectations and portrays money strength that tends not to replicate economic reality. Meanwhile, the organization's environmental responsibility program enables investors to expertise huge losses once there is an Associate in Nursing scandal (Alqaralleh et al, 2021;Hardiningsih et al, 2020;Huynh, 2020). According to Healy and Wahlen (2005), EM occurs once managers incorrectly "provide stakeholders with information concerning the company's basic economic performance.…”