Corporate Social Environment and Carbon Dioxide emissions Reduction impact on Organizational Performance; mediator role of Social Capital

Abstract

Corporate social and Eco-friendly Co₂ emission environment are essential for a firm's and employees' health. This Study investigates the impact of Corporate social environment and Co₂ emission environment on Organizational Performance the mediator role of social capital. The study used 260 Pakistan stock exchange-listed firms data from 2011 to 2020 and estimated impact through Regression least square method and GMM. Robust least square test used for validity and sustainability of results. The results of Regression least square and GMM confirmed that the Corporate social environment and environment friendly Co₂ emission have high significant positive impact on Organizational Performance. Social capital role as mediator is highly positive significance that enhances employee’s social, environment Co₂ emission activity and firm outcomes; Indicate corporate social environment, eco-friendly Co₂ emission and social capital have intangible potential Capital of a firm and their significant impact on organizational performance. The robustness test results also confirmed the validity and sustainability impact of Corporate social environment, eco-friendly Co₂ emission and social capital on Organizational Performance. Recommendations are cleared and suggest more focus on employees' social and clean Co₂ emission environmental activities essential requirements of organizational performance, support, and motivation because social capital produce employees self-efficacy and enhances Organizational Performance, Firms appealing to more investments and higher financial performance; investors are aware of the importance of social, firm environmental and employees concerns.