Corporate CSR practices and corporate performance: managerial implications for sustainable development

Abstract

This study analyses the environmental and social management practices' impact on the organisations' economic performance via the mediating role of social and environmental performance. Moreover, it investigates the impact of social and environmental performance on economic performance through the moderating impact of financial conditions. The primary data are collected through a survey-based questionnaire technique from the manufacturing sector of Oman. Data analysed through the confirmatory factor analysis and the application of structural equation modelling. Findings have suggested that environmental management practices and social management practices positively impact economic performance and that social and environmental performance have mediating effects. Further, the financial condition impacts social performance and economic performance but has an insignificant relation as a moderator between environmental performance and economic performance. These findings would aid the managers to construct meticulous policies for the sustainable growth of the organisations. Moreover, the manufacturing sector policymakers need to adopt EMP and apply social management practices to garner sustainable economic performance. This study has a significant contribution to the literature by highlighting the mediating effect of social and environmental performance and moderating the impact of financial conditions on the corporate sector's performance.