Green Capacity Mediates Corporate Social Responsibility and Environmental Sustainability Attitude on Manufacturing Environmental Performance

Abstract

Growing environmental concerns and the rising pressure on manufacturing industries to embrace sustainable practices have underscored the importance of corporate social responsibility (CSR) and environmental sustainability attitudes (ESA). This study examines direct as well mediating role of green capacity in the link between CSR, ESA, and manufacturing environmental performance (MEP). Green capacity is positioned as a strategic resource in this study. The model was tested through Smart-PLS. The results of study showed that green capacity mediates between ESO and environmental performance to some extent. Green capacity also acts as a complete mediator between environmental performance & CSR, the research results revealed positive correlation among ESO and EP, ESO had positive association with green capability, there is no evidence that CSR affects environmental performance. Additionally, CSR has a significant beneficial impact with green capabilities. Results also showed Environmental performance is much improved by green. A survey of manufacturing firms provides evidence that green capacity not only enhances resource efficiency but also acts as a key mediator, strengthening the influence of CSR and ESA initiatives on environmental performance. The findings highlight the need for firms to invest in green capacity to better align CSR and sustainability strategies with measurable improvements in environmental performance, benefiting both corporate objectives and broader ecological goals.