Corporate social responsibility, sustainable environmental practices and green innovation; perspectives from the Ghanaian manufacturing industry

Abstract

As the discourse around business ethics and sustainable development intensifies, many organizations are adopting initiatives in corporate social responsibility (CSR) as a strategic tool to satisfy regulatory requirements and also stakeholder expectations. While exploring the relationship between sustainable environmental practices and green innovation, this study identifies four critical stakeholder-centered CSR activities as precursors to sustainable environmental practices using data from 404 manufacturing firms in Ghana. The data was analyzed using the partial least squares method to structural equation modeling (PLS-SEM). The results established a positively significant relationship between employee-centered CSR initiatives and sustainable environmental practices while the relationship between community-centered CSR, consumer-centered CSR and environment-centered with sustainable environmental practices CSR were each not significant. However, sustainable environmental practices were found to advance green innovation. The study further recommended a multi-dimensional stakeholder-centered approach to the practice of CSR as a strategic tool for sustainable environmental development by the leadership of manufacturing firms, policy makers and regulatory bodies.