The effect of organizational environmental performance on corporate social responsibility: the role of building employee social capital

Abstract

This study aims at investigating the relationship between organizational environmental performance (EP) and corporate social responsibility (CSR) and the moderating effect of building employee social capital (SC) in this relationship. This study is quantitative in nature, using the responses of employees in Greek heavy industries (i.e., chemicals – oil & gas, power, cement, metals and steel production companies) through a survey approach to gathering data and the implementation of a series of statistical analyses for interpreting the results. The findings indicated a strong relationship between EP and CSR, and specifically in the three dimensions of the latter, namely the social, the economic and the environmental dimension. Although the moderation effect of SC was not statistically significant, important guidelines for future research are proposed, for further examining CSR in relation to SC. While the relationship between EP and CSR has been investigated elsewhere at the corporate level of analysis, this research extends the current literature by investigating the relationship between the two variables at the individual level of analysis. This relationship is crucial because it elucidates the importance of integrating and implementing ESG (Environmental, Social and Governance) actions and initiatives as a priority in contemporary corporate strategy for the creation of added value, with an emphasis to internal stakeholders.