Relation of environment sustainability to CSR and green innovation: A case of Pakistani manufacturing industry

Abstract Although extensive studies have focused on the impact of different corporate social responsibility (CSR) activities on environmental sustainability, few studies investigated the effects of CSR activities on environmentally sustainable development and green innovation. Yet, as a determinant of environmental strategies, green innovation haven’t received much attention. Therefore, this study explored how different CSR dimensions impacts on environmentally sustainable development and further on green innovation. Data were collected from 282 respondents belonging to the manufacturing industries of Pakistan from January 2019 to April 2019; and analyzed by adopting methods of partial least squares structural equation modeling (PLS-SEM) and grey relational analysis. As per study results, all dimensions of CSR were found positively significant towards environmentally sustainable development. Further, the environmentally sustainable development positively enhances green innovation. This research employed an innovative attempt to evaluate the ranking of these constructs by using grey relational analysis whereby it was found that CSR to environment had a stronger effect, whereas CSR to consumer had a weaker impact on environmentally sustainable development. The research findings suggest that CSR activities should be embedded in the organizational environmental strategies for green innovation, as all CSR dimensions had positive relations with environmentally sustainable development.