The Effect of Corporate Social Responsibility on Environmental Performance in China’s Manufacturing Industry: The Mediating Role of Environmental Strategy and Green Innovation

Abstract

Within the ever-changing manufacturing landscape of China, corporate social responsibility (CSR) is a key factor influencing environmental performance. Knowing the relationship between corporate social responsibility (CSR) efforts and environmental results is crucial as environmental concerns throughout the world grow more pressing. This research explores the complex relationship between CSR practices and environmental performance, focusing on how green innovation and environmental strategy function as mediating factors. The urgent need to prevent industrial environmental consequences in the face of fast economic expansion highlights the need for this investigation. China, a major force in world manufacturing, must balance environmental sustainability with economic expansion. In addition to improving a company’s reputation, effective CSR initiatives are essential for promoting sustainable development. Through an analysis of the mediating functions of green innovation, which propels technological developments, and environmental strategy, which comprises policies and practices, we clarify how proactive CSR methods can ignite revolutionary shifts towards more environmentally friendly manufacturing processes. In order to create a harmonious balance between industrial growth and ecological stewardship, this research aims to provide theoretical insights as well as practical implications for industry leaders and policymakers. It achieves this by promoting strategic alignment between CSR goals and environmental imperatives.

1. Introduction

The environment in which organizations operate their functions is influenced by their activities. Organizations’ ENP is the extent to which they are held responsible and accountable during their interactions with the environment in order to achieve their goals, which are mostly of an economic nature. In organizational performance, the cautious and responsible use of natural phenomena and their elements, such as renewable and non-renewable resources, is included (Yousefi, Lu, Elimelech, and Tufenkji [1]). In the words of Li, Dai, and Cui [2], good ENP shapes an organizations’ activities and consumption processes in a way that may not affect the environment with its physical geographical characteristics, atmosphere, and productivity. The authors continue to explain that the objective of ENP is to preserve the environment with all its characteristics and functioning for the next generation. A preserved environment is vital for a country to stay on the world’s surface and accelerate its development (Sharma, Sarmah, and Dubey [3]).

Through the provision of financial, political, and technical assistance to improve stability, security, and prosperity in these nations, the European Union hopes to fortify ties with its neighbors through the European Neighborhood Policy (ENP) (García Martín & Herrero, (2020) [4]). This policy aims to accomplish the following objectives through collaboration with nations in Eastern Europe and the Southern Mediterranean; supporting institutional and political changes that uphold democracy, the rule of law, and human rights is one way to promote stability and security.

• Fostering economic development through strengthening economic cooperation with the European Union, bolstering small and medium-sized businesses, and improving the business environment.
• Collaboration in certain fields, such as transportation, energy, ecology, health, and education.
• Encouraging mutual understanding and communication between the peoples of the European Union and its bordering countries through cultural and educational exchange programs.
• The management of migration by working together to enforce border controls, stop illegal immigration, and improve legitimate immigration routes. In order to help partner nations’ development and reform initiatives, this policy is executed through partnership and cooperation agreements as well as action plans that are customized for each nation. Partner countries can make use of European funds, technologies, and knowledge (Anwar et al. [5]).

Corporate social responsibility (CSR) is an imperative business strategy that may lead the way to attaining sustainable ENP. It is a strategic business concept where organizations are self-regulated, having accountability for themselves and their stakeholders. CSR for the community and CSR for the environment are the two components of CSR (Zaman, Jain, Samara, and Jamali [6]). In CSR for the community, organizations must consider their duties to community members from the perspective of their social, economic, and health well-being. When organizations focus on being committed to CSR in the community, they try to remove all the negative impacts on people living in the community where they operate their functions. Through their efforts, organizations reduce environmental issues and improve ENP (Barauskaite and Streimikiene [7]). Under CSR for the environment, organizations consider their duties to the environment where they exist and function and try to maintain its quality. Organizations’ initiatives, in this regard, are helpful in achieving environmental goals and show superior ENP (Carroll [8]).

This study does not just repeat previously conducted studies, but presents great additions to the literature. First, in previously conducted studies, the role of CSR in organizations’ ENP has been analyzed (Gao, Y., Lin, R. and Lu, Y. (2022) [9]). Few studies have been conducted to judge the individual roles of CSR in the community and CSR in the environment in ENP. The present article, which sheds light on the role of CSR’s dimensions, like CSR for the community and CSR for the environment in ENP, adds to the literature. Second, a few past authors have talked about the mediating role of green innovation and environmental strategy between CSR for the community, CSR for the environment, and ENP. This study’s great initiative is its elaboration on the mediating role of green innovation and environmental strategy between CSR for the community, CSR for the environment, and ENP. So, it removes the literary gap. Third, manufacturing is the largest industry in China, and it causes pollution in large amounts; there has been a need for ENP in this industry. There is a literary exception in that the present study determined the relationships of CSR for the community, CSR for the environment, green innovation, and environmental strategy with ENP in the manufacturing industry of China (J. Liu, Yang, Ou, & Liu, (2022) [10]).

The present article has five parts. The second part is based on a literature review indicating the relationships between CSR for the community, CSR for the environment, green innovation, environmental strategy, and ENP. The third part explains the methodology applied for conducting this study, and the next part gives the study results. In the fourth part, the present research findings are supported by a previous study by comparing their outcomes. In the end, this study’s implications, conclusions, and limitations are given (Cui, Kara, & Chan, (2020) [11]). The study “The Effect of Corporate Social Responsibility on Environmental Performance in China’s Manufacturing Industry: The Mediating Role of Environmental Strategy and Green Innovation” was inspired by the growing concern over environmental degradation that is occurring throughout the world, as well as the critical role that the manufacturing sector plays in this regard. China’s fast industrialization in recent years has created serious environmental problems such as water and air pollution. The goal of this study is to investigate how corporate social responsibility (CSR) initiatives can lessen environmental degradation. This study intends to shed light on how well CSR programs support sustainable industrial practices by investigating the connection between environmental performance and CSR. It also fills a vacuum in the research regarding the contribution of CSR to better environmental outcomes in the Chinese manufacturing industry. Policymakers, business executives, and other stakeholders who are dedicated to accomplishing sustainable development goals must comprehend this dynamic. This study’s ultimate goal is to draw attention to the possible advantages of incorporating CSR into corporate plans in order to help China’s manufacturing sector become more ecologically conscious (Cai & Luo, (2020) [12]).

2. Literature Review

Humans’ social lives and a country’s economic conditions both depend on the environment because it determines the quality of the atmosphere, availability of natural resources, food supply, and health of living creatures. But human activities, especially economic activities where energy resources, chemicals, technologies, and explosive experiments occur quite often, create environmental pollution and deteriorate nature’s functioning and productivity. If business organizations show better ENP, they may preserve the environment and sustain countries’ development (S. A. R. Khan, Zhang, Kumar, Zavadskas, & Streimikiene [13]). CSR is one of the business strategies where organizations are self-regulated with the consciousness of their accountability and responsibility toward stakeholders’ well-being. CSR for the community and CSR for the environment are the two dimensions of CSR. If some organizations undertake CSR for the community and CSR to environmental actions, it can improve ENP (Nazari, Hrazdil, & Mahmoudian [14]). Many authors have discussed the relationship between CSR for the community, CSR for the environment, green innovation, environmental strategy, and ENP. In the following paragraphs, there is a short review of the literature explaining these relationships.

CSR for the community encompasses responsibilities towards the community and its people as well as the CSR actions in accordance with the community’s responsibilities (Chuang and Huang) [15]. The study of Tang and Tang [16] examines the relationship of CSR for the community with organizations’ ENP. When organizations adopt CSR for the welfare of the community, it takes care of their health and social and economic prosperity and intends to carry out only processes that may not become a hurdle to the welfare of the community. Consequently, the undertaking of eco-friendly processes adds to ENP (Shafique, Kalyar, and Mehwish [17]) highlight that when a business organization is bound under CSR and acknowledges its responsibility towards the well-being of the people who live in the community where it operates its functions, it creates jobs that are fruitful to the community people and organization. In this situation, these organizations may also start environmental programs that require new staff and add to business ENP.

H1. 

CSR in the community has a positive relationship with ENP.

In CSR for the environment, firms’ focus is on environmental quality, and they perform environmental sustainability actions like waste management, water management, reusing materials, adopting renewable energy, reducing chemical-emitting items, etc. (Ahmad et al. [18]). In their study, Birindelli, Iannuzzi, and Savioli [19] explain that when organizations regulate their activity by applying policies like reducing waste, recycling waste or excess material, energy efficiency, and reducing chemical emissions, they exceed ENP (Memon, Yong An, and Memon [20]) also state that in an organization where CSR for the environment is followed, all the business activities in which the organization is currently involved are assessed properly, their influences on the environment are evaluated, and attempts are made to remove negative influences. So, the execution of CSR in the environment improves ENP.

H2. 

CSR for the environment has a positive relationship with environmental performance.

Under CSR for the community, organizational management keeps an eye on community members’ well-being, their expectations, and the actions required to meet the needs of the community (Yusliza et al. [21]). In this regard, management makes changes in their policy design in order to respond to community members’ expectations. There is green innovation. As a result, demands for environmental friendliness are met (Hong, Drakeford, and Zhang) [22]. Shahzad, Qu, Javed, Zafar, and Rehman [23] examine CSR for the community’s role in green innovation in the case of the Pakistani manufacturing industry. Data were collected from 282 respondents through survey questionnaires for the year 2019. The study implies that the self-regulation of firms under CSR in the community inspires administrators to try novel green technologies that assure the protection of community members. In this situation, green innovation occurs and is promoted quickly within the organization.

H3. 

CSR for the community has a positive relationship with green innovation.

The organizations committed to the environment under CSR prefer the procurement and allocation of resources in business processes that do not emit pollution damaging the natural environment. The replacement of resources and processes with new ones brings green innovation (Ren, Huang, Liu, and Yan (2023) [24]). Mbanyele, Huang, Li, Muchenje, and Wang [25] investigate the impacts of CSR for the environment on green innovation adoption. The Thomson Reuters ASSET4 ESG database, CSR disclosure ratings, and PATSTAT were used to collect data on CSR for the environment and green innovation. The study posits that if organizations are bound under CSR for the environment, they make changes wherever they find environment-polluting elements. Thus, ecologically friendly change is brought about by different business processes determining green innovation. So, the following hypothesis is established:

H4. 

CSR for the environment has a positive relationship with green innovation.

CSR for the community plays a critical role in implementing environmental strategies effectively (Afsar and Umrani [26]). Kraus, Rehman, and García [27] wrote about the influence of CSR on the community’s environmental strategy and ENP. A survey approach was applied, and data for CSR for the community, environmental strategy, and ENP were collected from 297 large manufacturing firms in Malaysia. The results from the analysis through smart PLS show a positive association between CSR in the community and environmental strategy. Pucheta Martínez and Gallegoílvarez (2019) [28] imply that a business has both positive and negative influences on the people around it. The business organizations engaged in CSR for community regulations are more conscious and active in forming and implementing effective environmental strategies so that negative business influence on community members can be reduced. Thus, CSR for the community improves environmental strategy and its execution. Thus, the following hypothesis is established:

H5. 

CSR for the community has a positive relationship with environmental strategy.

A business which is regulated under CSR for the environment forms different environmental strategies that are distinctive in nature but targeted toward environmental preservation [29]. A literary article by AlSuwaidi, Eid, and Agag [30] assesses the relationship between CSR and the environment, green employee behavior, and environmental strategy using data. The data were collected from 988 hotel employees in the tourism industry in the UAE, and AMOS was used for analysis. The study implies that when CSR for the environment is being executed, ecologically friendly resources are introduced, employees are trained to produce better environmentally friendly outcomes during their performance, and fewer pollution-emitting business procedures are implemented. In these circumstances, effective environmental strategies are made and practiced. Therefore, the following hypothesis is established.

H6. 

CSR for the environment has a positive relationship with environmental strategy.

When firms have the policy to adopt innovation and integrate the green concept into innovation in business processes, it adds ecological value to products and responds to customers’ environmental expectations. Hence, green innovation has a positive link with ENP (Peng, Chen, Elahi, and Wan) [31]. A study was conducted by Singh, Del Giudice, Chierici, and Graziano [32], which integrated the relationship between green innovation and ENP, transformational leadership, green human resources, and ENP. The data were acquired from 309 manufacturing sector small and medium-sized enterprises (SMEs) by distributing survey questionnaires. The study hypotheses were judged through SEM. The study implies that under green innovation, the structure of the resources is redesigned and managed so that they are optimally utilized and emit minimum waste. The reduction in waste from production processes overcomes environmental pollution and makes organizations show higher ENP. So, the following can be hypothesized:

H7. 

Green innovation has a positive relationship with environmental performance.

Environmentally friendly planning through environmental strategies enables an organization to conduct its activities while showing responsibility for the environment. So, environmental strategy is positively linked to ENP (Peng et al. [31]). A study by Mak and Chang [33] was conducted to examine the role of environmental strategy in ENP. Data were taken from senior hotel managers in Taiwan by conducting semi-structured interviews. The study posits that if business administrators form different environmental strategies regarding building infrastructure, energy sources, raw materials, other resources, production processes, marketing, etc., and execute them effectively, they can meet public expectations of ecologically friendliness. So, the firm shows a higher ENP. Hence, the following can be hypothesized:

H8. 

Environmental strategy has a positive relationship with environmental performance.

Organizations applying CSR for the community bring green innovation to their different departments considering the economic and health benefits to the community. When an organization steps towards green innovation, it accepts environmentally friendly practices and achieves ENP. So, green innovation mediates between CSR, community, and ENP (C. Zhang, Liu, Ge, Hao, and Hao [34]). In a literary article, Cordeiro, Profumo, and Tutore [35] assess the relationship between CSR in the community, green innovation, and ENP. Under CSR for the community, the economic and social well-being of community members is cared for. In this regard, organizations prefer to implement green innovation, which leads to better satisfaction regarding environmental health. Hence, CSR for the community through green innovation adds to ENP. So, we may hypothesize the following:

H9. 

Green innovation is a significant mediator between CSR for the community and environmental performance.

When CSR for the environment is adopted by an organization under the consideration of responsibilities toward society’s well-being regarding environmental quality, it proceeds to adopt ecologically friendly practices and resources. This promotes green innovation within the organization, and whenever green innovation is part of business strategies, the organization is able to have higher ENP. That is why green innovation is a link between CSR for the environment and ENP (Omran, Zaid, and Dwekat) [36]. Hao and He [37] identify the relationship between CSR for the environment, green innovation, and ENP. The data for CSR for the environment, green innovation, and ENP were obtained from Chinese A-share listed companies from 2008 to 2019. The results show that green innovation becomes effective under CSR for the environment, and green innovation improves ENP.

H10. 

Green innovation is a significant mediator between CSR for the environment and environmental performance.

Organizations with CSR for the community have concern for public health and train their personnel to act as protectors of the community. In this setting, environmental strategy can be effective and improve ENP (T. M. Khan, Gang, Fareed, and Yasmeen) [38]. Nave and Ferreira (2019) [39] examine the relationship between CSR for the community, environmental strategy, and ENP. A systematic review was conducted for their study, and 119 articles from the previous 25 years were examined from the ISI Web of Science database. The review shows that with CSR for the community, organizations take many precautions that are helpful in implementing environmental strategies effectively. An effective environmental strategy leads organizations to achieve higher ENP. Thus, the following hypothesis is established:

H11. 

Environmental strategy is a significant mediator between CSR for the community and environmental performance.

If an organization is self-regulated under CSR for the environment, the organizational personnel have a thorough knowledge and effective physical skills to practice environmental strategy. Effective environmental strategies may lead the organization to raise the level of ENP (Anser, Yousaf, Majid, and Yasir) [40]. Through empirical research, Avotra, Chenyun, Yongmin, Lijuan, and Nawaz [41] identified a relationship between CSR for the community, environmental strategy, and ENP. The quantitative data were acquired from 319 respondents rendering their services for different projects in the construction industry of China. SEM analysis was conducted with the help of smart-PLS, and the hypotheses’ relationships were tested. The results showed that environmental strategy represents a link between CSR for the community and ENP. Thus, we hypothesize the following:

H12. 

Environmental strategy is a significant mediator between CSR for the environment and environmental performance.

3. Research Methodology

This article examines the impact of CSR for the community and environment on ENP and also investigates the mediating role of green innovation and environmental strategy among CSR for the community, CSR for the environment, and the ENP of the manufacturing industry in China. This article obtains its primary data from the selected employees of the manufacturing industry using questionnaires. The variables are measured with questions taken from past literature; CSR for the community is measured with three questions and CSR for the environment is measured with four questions taken from Shahzad et al. [23], green innovation is measured with seven questions extracted from Song, Yang, Zeng, and Feng [42], environmental strategy is measured with five questions adopted from Aftab, Abid, Cucari, and Savastano (2023) [43], and ENP is measured with six questions extracted from Aftab et al. (2023) [43]. These measurements are outlined in

Table 1. Measurement of the variables.

Items	Statements	Sources
CSR for the Community
CSRC1	Our organization gives adequate financial contributions to charities.	Shahzad et al. [23]
CSRC2	Our organization supports non-governmental organizations working in problematic areas.
CSRC3	Our organization contributes to the campaigns and projects that promote the well-being of society.
CSR for the Environment
CSRE1	Our organization participates in activities which aim to protect and improve the quality of the natural environment.	Shahzad et al. [23]
CSRE2	Our organization invests in creating a better life for future generations.
CSRE3	Our organization implements special programs to minimize its negative impact on the natural environment.
CSRE4	Our organization targets sustainable growth, which considers future generations.
Green Innovation
GNI1	The company chooses the materials of the product that produce the least pollution.	Song et al. [42]
GNI2	The company chooses the product’s materials that consume the least energy and resources.
GNI3	The company uses the smallest number of materials to create the product.
GNI4	The company circumspectly deliberates whether the product is easy to recycle, reuse, and decompose.
GNI5	The manufacturing process effectively reduces the emissions of hazardous substances or waste.
GNI6	The manufacturing process recycles waste and emissions to allow them to be treated and reused.
GNI7	The manufacturing process reduces the consumption of water, electricity, coal, or oil.
Environmental Strategy
ENS1	Our firm reduced energy consumption.	Aftab et al. (2023) [43]
ENS2	Our firm reduced waste and emissions from operations.
ENS3	Our firm reduced the impact on animal species and natural habitats.
ENS4	Our firm reduced the environmental impacts of its products/services.
ENS5	Our firm reduced environmental impact by establishing partnerships.
Environmental Performance
ENP1	Our firm sold waste products for revenue.	Aftab et al. (2023) [43]
ENP2	Our firm reduced the costs of inputs for the same level of output.
ENP3	Our firm reduced costs for waste management for the same level of output.
ENP4	Our firm worked with government officials to protect the company’s interests.
ENP5	Our firm created spin-off technologies that could be profitably applied to other business areas.
ENP6	Our firm differentiated the process/product based on the marketing efforts of the process/product’s ENP.

.

The samples were studied in the post-COVID pandemic period (in the past two years). The study’s respondents were Chinese manufacturing industry personnel. They were selected using basic random sampling. Through in-person trips to the manufacturing sector, the survey questionnaires were given out to the chosen personnel. After a month, the researchers received only 294 genuine responses out of the approximately 547 they had sent, representing around 53.75 percent of the response rate. (This percentage was obtained due to the large number of employees in the various sectors of China. Therefore, a simple sample was sufficient for us to serve as an example in this study, and it can be adopted as a percentage and multiplied by a specific number to represent a larger population.). In addition, this article also tests the validity and reliability of the data and the associations among variables using smart-PLS. This is an effective statistical tool that provides the best outcome using primary data [44]. It also provides the best results, even if the researchers use complex models or large data sets (Hair Jr., Howard, and Nitzl [45]). Moreover, this study used two predictors: CSR in the community (CSRC) and CSR in the environment (CSRE). In addition, the study also used two mediating variables named green innovation (GNI) and environmental strategy (ENS) and one predictive variable named environmental performance). These constructs are presented in Figure 1.

4. Research Findings

The outcomes show convergent validity that exposes the items’ correlation. This was assessed using Alpha and composite reliability (CR), and the figures exceed the limit of 0.70. In addition, it is also assessed using factor loadings and average variance extracted (AVE), and the figures exceed the limit of 0.50. These figures expose the high correlation among items. These values are given in

Table 2. Convergent validity.

Constructs	Items	Loadings	Alpha	CR	AVE
CSR for the Community	CSRC1	0.869	0.850	0.909	0.768
	CSRC2	0.877
	CSRC3	0.884
CSR for the Environment	CSRE1	0.781	0.798	0.868	0.622
	CSRE2	0.790
	CSRE3	0.798
	CSRE4	0.785
Environmental Performance	ENP1	0.841	0.897	0.928	0.765
	ENP3	0.912
	ENP5	0.884
	ENP6	0.859
Environmental Strategy	ENS1	0.900	0.923	0.942	0.764
	ENS2	0.926
	ENS3	0.894
	ENS4	0.805
	ENS5	0.841
Green Innovation	GNI1	0.905	0.878	0.908	0.626
	GNI2	0.854
	GNI4	0.711
	GNI5	0.660
	GNI6	0.744
	GNI7	0.845

.

These outcomes show discriminant validity that exposes the variables’ correlation. This was checked using the Fornell–Larcker criterion and cross-loadings, and the figures show that the values that expose the association with the variable itself are larger than the figures that expose the association with other variables. These figures expose the low correlation among variables. These values are given in

Table 3. Fornell–Larcker criterion.

	CSRC	CSRE	ENP	ENS	GNI
CSRC	0.877
CSRE	0.572	0.789
ENP	0.504	0.637	0.874
ENS	0.525	0.506	0.749	0.874
GNI	0.467	0.645	0.603	0.493	0.791

and

Table 4. Cross-loadings.

	CSRC	CSRE	ENP	ENS	GNI
CSRC1	0.869	0.538	0.467	0.499	0.400
CSRC2	0.877	0.516	0.407	0.423	0.385
CSRC3	0.884	0.449	0.447	0.455	0.442
CSRE1	0.419	0.781	0.561	0.453	0.529
CSRE2	0.416	0.790	0.533	0.410	0.433
CSRE3	0.515	0.798	0.439	0.370	0.539
CSRE4	0.457	0.785	0.467	0.357	0.531
ENP1	0.460	0.472	0.841	0.602	0.497
ENP3	0.421	0.570	0.912	0.699	0.546
ENP5	0.408	0.603	0.884	0.672	0.536
ENP6	0.480	0.574	0.859	0.643	0.528
ENS1	0.437	0.401	0.585	0.900	0.413
ENS2	0.469	0.439	0.660	0.926	0.442
ENS3	0.500	0.523	0.723	0.894	0.472
ENS4	0.496	0.477	0.731	0.805	0.435
ENS5	0.361	0.329	0.520	0.841	0.369
GNI1	0.424	0.581	0.584	0.481	0.905
GNI2	0.419	0.522	0.500	0.417	0.854
GNI4	0.300	0.394	0.339	0.309	0.711
GNI5	0.333	0.449	0.373	0.292	0.660
GNI6	0.371	0.588	0.509	0.388	0.744
GNI7	0.351	0.488	0.502	0.415	0.845

.

These outcomes show discriminant validity that exposes the variables’ correlation (Figure 2). This was checked using Heterotrait–Monotrait (HTMT) ratios, and the figures show that the values are lower than 0.90. These figures expose the low correlation among variables. These values are given in

Table 5. Heterotrait–Monotrait ratios.

	CSRC	CSRE	ENP	ENS	GNI
CSRC
CSRE	0.696
ENP	0.578	0.747
ENS	0.582	0.575	0.808
GNI	0.537	0.762	0.668	0.535

.

The parameters studied here are the Beta Standard deviation T statistics p values.

In many situations, the bootstrapping technique proves to be beneficial when estimating random distributions from collected data. But in certain situations, bootstrapping might not be the best option:

Extremely small samples: The bootstrapping technique may not be successful if the sample size is too small since the resulting estimates may be erroneous or biased.

Particular statistical assumptions: Conventional analytical techniques may be more efficient and accurate than bootstrapping if the data are based on a particular distribution or statistical models with well-defined assumptions.

The outcomes of the path analysis indicated that CSR for the environment has a positive association with ENP and accept H1. In addition, the outcomes also indicated that CSR for the community and CSR for the environment have a positive association with green innovation and accept H3 and H4. Moreover, the outcomes also indicated that CSR for the community and CSR for the environment have a positive association with environmental strategy and accept H5 and H6. Finally, the outcomes also indicated that green innovation and environmental strategy have a positive association with ENP and accept H7 and H8. These associations are given in

Table 6. Direct path analysis.

Relationships	Beta	Standard Deviation	T Statistics	p Values
CSRC -> ENP	−0.006	0.044	0.141	0.888
CSRC -> ENS	0.350	0.052	6.740	0.000
CSRC -> GNI	0.147	0.050	2.910	0.004
CSRE -> ENP	0.254	0.045	5.703	0.000
CSRE -> ENS	0.306	0.051	5.967	0.000
CSRE -> GNI	0.561	0.047	11.984	0.000
ENS -> ENP	0.536	0.037	14.365	0.000
GNI -> ENP	0.178	0.050	3.535	0.000

and Figure 3.

Finally, the outcomes also exposed that green innovation and environmental strategy significantly mediate among CSR for the community, CSR for the environment, and ENP and accept H9, H10, H11, and H12. These associations are given in

Table 7. Indirect path analysis.

Relationships	Beta	Standard Deviation	T Statistics	p Values
CSRC -> ENS -> ENP	0.188	0.030	6.258	0.000
CSRC -> GNI -> ENP	0.026	0.011	2.310	0.021
CSRE -> GNI -> ENP	0.100	0.030	3.326	0.001
CSRE -> ENS -> ENP	0.164	0.029	5.611	0.000

and Figure 3.

5. Discussions

These results show that CSR in the community has a positive relationship with ENP. These results are supported by Burkhardt, Nguyen, and Poincelot [46], which highlights that under CSR for the community, organizations regulate themselves in order to respond to community requirements. This continuous regulation improves organizations’ ENP. These results are also in line with Dilla, Janvrin, Perkins, and Raschke (2019) [47], which explains that recognition of responsibility to the community and the execution of CSR requirements motivate organizations to design and implement business activities so as not to affect the environment. Hence, organizations’ ENP improves. Our results also showed that CSR for the environment has a positive relationship with ENP. These results are supported by Tran and Pham [48], who state that in CSR for the environment, rules and regulations are followed by business organizations while operating their functions, keeping in consideration the public’s eco-requirements. Consequently, CSR for the environment improves ENP. These results are also in line with Graafland and Bovenberg [49], who claim that CSR for the environment strengthens an organization’s ability to fight against environment-polluting elements throughout the course of business and thereby achieve higher ENP.

Our results also revealed that CSR in the community has a positive relationship with green innovation. These results are supported by Padilla-Lozano and Collazzo [50], who investigate how CSR must contribute to the community through green innovation in firms. The study claims that CSR in the community is directed toward community well-being revolving around environmental quality. This gives birth to green innovation. These results also align with those of Ureña Espaillat, Briones Penalver, and Bernal Conesa [51], who imply that business organizations following CSR for the community regulations are efficient in implementing green innovation. Our results showed that CSR for the environment has a positive relationship with green innovation. These results are supported by Marco-Lajara, Zaragoza-Sáez, Martínez-Falcó, and Sánchez-García (2023) [52], who imply that CSR for the environment is associated with environmental preservation on the part of the organization. Thus, this leads to green innovation. These results are also in line with F. Zhang, Qin, and Liu [53], who proclaim that under CSR for the environment, changes are made in energy technologies, mechanical processes, manufacturing procedures, and product design so that the environmental issues caused by the business can be minimized. These changes result in green innovation. Our results indicated that CSR for the community has a positive relationship with environmental strategy. These results agree with Shabbir and Wisdom (2020) [54], who indicate that CSR for the community includes the regulations for community welfare and welfare linked to environmental health as well. Hence, it becomes easy to apply the environmental strategy. These results are also in line with Raza, Farrukh, Iqbal, Farhan, and Wu [55], which reveals that business organizations, under CSR for the community, motivate organizational personnel to be active in environmentally friendly operations, which has a lot to do with community well-being. So, environmental strategies are effective in CSR for the community. Our results indicated that CSR for the environment has a positive relationship with environmental strategy. These results agree with Barauskaite and Streimikiene [7], who posit that CSR for the environment consists of monitoring environmental quality, assessment, and betterment. Thus, it enables the organization to form an environmental strategy. These results are also in line with Dhar, Harymawan, and Sarkar [56], who imply that the execution of CSR for the environment arouses consciousness in organizational personnel regarding their responsibilities to the environment and motivates them to increase their environmental knowledge. These personnel can design effective environmental strategies.

Our results showed that green innovation has a positive relationship with ENP. These results are also in line with Sarfraz, He, and Shah [57], who imply that innovation with green integration leads to the adoption of many environmentally friendly practices. It adds to the organization’s ENP. These results are supported by T. Liu, Zhang, and Liang (2019) [58], who highlight that if a business organization adopts green innovation, it succeeds in better satisfying the environmental requirements of customers and regulators. Thus, it achieves superior ENP. Our results showed that environmental strategy has a positive relationship with ENP. These results are supported by Endo (2019) [59], who examine the role of environmental strategy in ENP. The study implies that if effective environmental strategies are planned and practiced, the emission of toxic substances from business practices can be controlled, and higher ENP can be achieved. These results are also in line with Endo (2019) [59], who proclaims that when there is execution of an effective environmental strategy, all the general or specific business processes are free from steps or resources that may cause environmental pollution. As a result, it improves ENP.

Our results showed that green innovation is a significant mediator between CSR for the community and ENP. The study of Rehman et al. [60] supports these results. This previous study implies that if CSR for the community is applied by an organization, they may apply innovation as well as integrate eco-friendly concepts in their innovation. Green innovation in business processes frees businesses from pollution and improves their ENP. These results also match with Rehman et al. [60], who imply that the effective execution of CSR for the community leads organizations to adopt green innovation and reduce the creation of elements causing pollution to the environment. Thus, the ENP is better. Our results showed that green innovation is a significant mediator between CSR for the environment and ENP. These results are supported by Orazalin and Baydauletov [61], who state that in CSR for the environment, organizational personnel are committed to the environment and apply green innovation, which further improves ENP. These results are also in line with Birindelli et al. (2019) [19]. The authors had the view that under green innovation, administrators prefer to employ ecologically friendly technology, which is a great innovation from a green perspective. Green innovation, in turn, improves organizations’ ENP.

Our results showed that environmental strategy is a significant mediator between CSR for the community and ENP. These results are supported by Beji, Yousfi, Loukil, and Omri [62], who imply that environmental strategy becomes effective in the presence of CSR for the community, and thereby, improves ENP. These results are also in line with Gilal, Ashraf, Gilal, Gilal, and Channa (2019) [63], who highlight that under CSR for the community, environmental strategies are designed to be effective to attain environmental goals. Effective environmental strategies are helpful for organizations to improve their ENP. Our results showed that environmental strategy is a significant mediator between CSR, the environment, and ENP. The study of Cordeiro et al. [35] gives similar results and supports this conclusion. Our study also shows environmental strategy to be a mediator between CSR, the environment, and ENP. These results are also in line with Ye, Kueh, Hou, Liu, and Yu [64], who proclaim that organizations’ abidance by the CSR for environmental regulations provides assistance in forming and implementing an environmental strategy.

5.1. Policy Implications

The current research study is of tremendous significance to developing countries like China, where the manufacturing industry is the major one that may influence the natural environment. This study has guidelines for organizations on how they can improve their ENP. This study states that business management must adopt CSR for the community in order to improve ENP. Similarly, CSR for the environment should be implemented for better ENP. This study suggests that green innovation must be adopted within organizations so that higher ENP is possible. Likewise, effective environmental strategy should be implemented for superior ENP. This study suggests that management must implement CSR for the community. This would help them to apply green innovation and, thereby, make ENP. This study also suggests that organizations must follow CSR for the environment. This would help them to apply green innovation and also achieve superior ENP. This study also states that CSR for the community must be followed for effective environmental strategy and higher ENP. This article guides policymakers in making policies related to improving ENP using CSR for the community and environment and green innovation. Moreover, this study conveys that management must make efforts to implement CSR for the environment so that it can help to apply green innovation and, thereby, make ENP possible.

5.2. Theoretical Implications

With important theoretical ramifications, the impact of corporate social responsibility (CSR) on environmental performance in China’s manufacturing sector is a complex issue. First off, by encouraging an organizational culture of accountability and sustainable behaviors, CSR programs can improve environmental performance. Businesses that include corporate social responsibility (CSR) into their core objectives frequently implement extensive environmental policies that conform to legal standards and public expectations. This tactical change can emphasize the value of proactive environmental management by mediating the relationship between CSR and environmental performance. Furthermore, CSR can promote green innovation by incentivizing businesses to allocate resources towards environmental-impact-reducing research and development. The creation of environmentally friendly goods and sustainable production methods, or “green innovation,” serves as a vital bridge that increases the benefits of corporate social responsibility (CSR) for environmental performance. According to the theoretical framework, when CSR is performed well, it not only directly affects environmental results but also creates an atmosphere that is favorable for creative and strategic solutions to environmental problems. The mediating functions of environmental strategy and green innovation are crucial in the context of China’s manufacturing industry, where public scrutiny and regulatory demands are growing, in order to achieve exceptional environmental performance, they emphasize the dynamic interplay between corporate responsibility, strategic planning, and innovation skills. This theoretical viewpoint emphasizes the need for an integrated strategy in which corporate social responsibility (CSR) is not just a side project, but rather, a key element of business strategy that promotes environmental stewardship and competitive advantage.

6. Conclusions

The major objective of the study is to investigate the influences of CSR dimensions like CSR for the community and CSR for the environment on ENP. It also aims to examine the role of green innovation and environmental strategy between CSR for the community, CSR for the environment, and ENP. The authors collected data for CSR for the community, CSR for the environment, green innovation, environmental strategy, and ENP from the manufacturing industry in China by distributing structured questionnaires. The study results showed a positive relationship of CSR for the community and CSR for the environment with ENP. The study concluded that if CSR for the community is applied by an organization, they have motivation to resolve environmental issues, leading to higher ENP. Similarly, if organizations implement CSR for the environment, their activities are directed such as to control pollution emissions. This adds to organizations’ ENP. This study also showed that green innovation and environmental strategy are positively linked to ENP. If there is adoption of green innovation within different organizational departments, this adds to the efficiency of business processes and contributes to ENP. Likewise, the formation and execution of effective environmental strategies as per current requirements overcomes the possibility of pollution emission and contributes to ENP. As per our study results, green innovation and environmental strategy play a mediating role between CSR for the community, CSR for the environment and ENP. If organizations are regulated under CSR for the community and CSR for the environment, they may adopt green innovation and implement environmental strategy effectively. As a result, green innovation and environmental strategy improve ENP.

Limitations

The present article also has some limitations. These limitations must be overcome by authors in the future. First, CSR is a broad business strategic framework which encompasses environmental responsibility, community involvement, employees’ well-being, and ethics. But the current study assessed only the influences of CSR for the community and CSR for the environment on ENP. So, the scope of our research framework is limited. Future researchers must shed light on all CSR dimensions in order to evaluate the ENP of an organization. Second, in this study, the authors assessed only the mediating role of green innovation and environmental strategy between CSR for the community, CSR for the environment, and ENP. However, green innovation and environmental strategy can better be judged as moderators between CSR for the community, CSR for the environment and ENP. Researchers are recommended to consider green innovation and environmental strategy as moderators in this framework.