How Corporate Responsibility Influences Organizational Performance

Abstract

Green transformational leadership (GTL) and corporate social responsibility (CSR) can significantly improve organizational performance (OP) by fostering sustainability, employee involvement, innovation, and advocacy of responsible practices. CSR initiatives can enhance a company's social legitimacy and commitment to ethical principles, environmental conservation, and social advancement. CSR has a significant impact on organizational outcomes, including competitive advantage, long-term performance, reputation, customer satisfaction, customer loyalty, and overall business performance. GTL encourages pro-environmental behavior (PEB) in workers, improving environmental management and performance. The study explores secondary data about the relationship between GTL and employees' eco-friendly behavior, focusing on a value-driven mechanism. The findings revealed that GTL has positive effects on green performance, such as innovation, product development, intrinsic motivation, mindfulness, self-efficacy, and performance and organizational performance can be enhanced by incorporating CSR into GTL. This chapter contributes to the growing field of CSR research by examining its three aspects: community-focused initiatives, employee-focused efforts, and customer-focused strategies.