EMBAR

Author:
Raj Kumar Bhattarai
Faculty of Management, Tribhuwan University Nepal

DOI: doi.org/10.58924/rjhss.v5.iss4.p5

Published Date: 16-Sep, 2026

Keywords: Green corporate social responsibility; organizational performance; organizational reputation; sustainability risk management; Nepalese commercial banks; sustainable banking

Abstract:
This study examines the relationship between Green Corporate Social Responsibility (GCSR) and organizational performance in Nepalese commercial banks, with particular attention to the mediating roles of Sustainability Risk Management (SRM) and Organizational Reputation (OR). Drawing on Stakeholder Theory, the Resource-Based View, Legitimacy Theory, and Institutional Theory, the study develops and tests a model linking environmental responsibility with organizational outcomes. A positivist, quantitative and cross-sectional design was adopted. Primary data were collected through a structured five-point Likert-scale questionnaire from 385 managerial and supervisory employees of Nepalese commercial banks. The data were analyzed using reliability and validity assessment and partial least squares structural equation modeling. The measurement model demonstrated satisfactory internal consistency and convergent and discriminant validity. The structural results show that GCSR has a positive but statistically insignificant direct effect on organizational performance (β = 0.087, p = 0.078). In contrast, GCSR significantly improves organizational reputation (β = 0.218, p < 0.001) and sustainability risk management (β = 0.164, p = 0.002). Both organizational reputation (β = 0.220, p < 0.001) and sustainability risk management (β = 0.393, p < 0.001) significantly predict organizational performance. The indirect effect through SRM is significant (β = 0.064, p = 0.006), as is the indirect effect through OR (β = 0.048, p = 0.014), while the total indirect effect is β = 0.112 (p < 0.001). The findings suggest that the performance value of GCSR in Nepalese banking is realized primarily through stronger sustainability risk management and reputational capital rather than through an immediate direct performance effect. The study contributes context-specific evidence from an emerging banking market and offers implications for bank managers and policymakers.

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