How Corporate Responsibility Influences Organizational Performance: An Overview on the Role of Green Transformational Leadership

Introduction

There has been a growing recognition of the need for sustainable practices in the business world recently, including the hospitality industry which has a significant impact on the environment, from energy and water consumption to waste management and carbon emissions. To address this challenge, many firms are exploring innovative methods of leadership and human resource management that can promote environmental behaviour among employees and stimulate innovation in sustainable practices. GTL of CEOs' is strongly correlated with increased green engagement among top management teams and, by extension, the adoption of more PEB (Huang, et al., 2021) and environmentally focused transformational leadership significantly predicted green behaviour in the workplace (Kura, K. M., 2016). By establishing workplace practices and policies that can reflect employees' values and preferences, such as opportunities for learning and development, policies that support work-life balance, and initiatives that foster a sense of community and social responsibility, the leadership can work to make work a pleasant experience for workers. It is necessary for companies to consider both environmental and social imperatives in addition to economic considerations.

In the realm of business, there exists a widely held belief that ethical conduct is not only desirable but also imperative. Businesses are thus required to adhere to principles of righteousness, justice, and fairness, while also striving to mitigate or prevent harm to all parties involved in their operations, commonly referred to as stakeholders. The utilization of concepts such as corporate citizenship, sustainability, and stakeholder interests serves to illustrate the imperative for corporations to embrace social responsibility. The existing body of literature on CSR extensively recognizes the interconnectedness between corporations and society, emphasizing the imperative for corporations to engage in actions that promote societal well-being (Tamvada, 2020).

The requirement for green training, green process innovation, and green management innovation all grows when GTL is implemented (Jamshed, et al., 2022). The objectives of this chapter were to check if GTL and CSR can significantly improve organizational performance by fostering sustainability, employee involvement, innovation, and advocacy of responsible practices. Because CSR initiatives enhance a company's social legitimacy and commitment to ethical principles, environmental conservation, and social advancement. 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. CSR is a strategic approach to a company's social performance, focusing on initiatives such as pro bono work, philanthropy, community education, and environmental protection. The current body of scholarly research primarily focuses on analyzing the effects of CSR on various organizational outcomes, including competitive advantage, long-term performance, reputation, customer satisfaction, customer loyalty, and overall business performance. The study explores the impact of GTL on employee environmentally friendly behavior, focusing on transformational leadership and identity theories. It highlights the role of value congruence as a mediator and green identity as a moderating factor.