Effect of stakeholder pressure on environmental performance: Do virtual CSR, green credit, environmental and social reputation matter?

J Environ Manage. 2024 Sep:368:122223. doi: 10.1016/j.jenvman.2024.122223. Epub 2024 Aug 19.

Abstract

In today's globalized and interconnected world, businesses operate within an interconnected network with various stakeholders. Among these stakeholders, the pressure from consumers, investors, regulators, and communities for corporations to adopt environmentally responsible practices has intensified significantly. Therefore, this study investigates the relationship between stakeholder pressure and environmental performance (EP) in Pakistan's manufacturing sector while examining the potential moderating roles of environmental reputation, social reputation, virtual CSR, and green credit. Data was gathered by convenience sampling and a cross-sectional research approach. A structural questionnaire was given to 376 employees of manufacturing firms that are listed on the Pakistan Stock Exchange (PSE). The research hypotheses were tested using PLS-SEM techniques, which examined the interactions between these variables. The results reveal that stakeholder pressure significantly influences the environmental performance of manufacturing firms. Environmental reputation and virtual CSR negatively moderate the relationship between stakeholder pressure and EP. Moreover, social reputation and green credit positively moderate the relationship between stakeholder pressure and EP. These results contribute to the existing literature by shedding light on how stakeholder pressure influences firms' environmental behavior. Practical implications include integrating virtual CSR strategies, securing green financing options, and building strong environmental and social reputations to effectively respond to stakeholder demands and improve environmental performance.

Keywords: Environmental performance; Environmental reputation; Green credit; Social reputation; Stakeholder pressure; Virtual CSR.

MeSH terms

  • Cross-Sectional Studies
  • Environment*
  • Humans
  • Pakistan
  • Surveys and Questionnaires