Mediating Role of Green Leadership in Linking Corporate Social Responsibility and Sustainable Performance

Abstract

This study examines the mediating role of green leadership in the relationship between corporate social responsibility (CSR) and sustainable performance within the banking sector of Pakistan. CSR is increasingly recognized as a strategic tool for achieving sustainability; however, limited empirical research explains the mechanism through which CSR initiatives translate into improved sustainable performance, particularly in emerging economies. Drawing on stakeholder and resource-based perspectives, this study proposes that green leadership acts as a critical mechanism linking CSR practices to sustainability outcomes. A quantitative research design was employed using survey data collected from 339 employees selected from a population of 2,244 banking professionals working in conventional, commercial, and Islamic banks across Pakistan. A convenient simple random sampling technique was adopted. Data were analyzed using Smart BLS-SEM to assess measurement reliability, validity, and the structural relationships among variables. The findings reveal that CSR significantly influences sustainable performance and positively predicts green leadership. Moreover, green leadership significantly enhances sustainable performance and partially mediates the CSR–sustainable performance relationship. The results suggest that environmentally responsible leadership strengthens the effectiveness of CSR initiatives in achieving economic, social, and environmental performance. The study contributes to sustainability and leadership literature and provides practical insights for banking managers and policymakers in Pakistan.