Corporate social responsibility and climate change mitigation: Discovering the interaction role of green audit and sustainability committee

Mohy‐ud‐Din, Kamran; Shahbaz, Muhammad; Du, Anna Min

Abstract

This study explores the role of corporate social responsibility in bolstering firm resilience amid the escalating threats of climate change and climate policy uncertainties. Specifically, it assesses whether corporate social responsibility initiatives can act as strategic buffers enhancing corporate sustainability. The research utilizes a panel dataset comprising annual observations from 451 US-based firms over the period 2012 to 2023, yielding a total of 5412 firm-year observations. Our findings indicate that corporate social responsibility potentially reduces the detrimental effects of climate change and policy uncertainty. Furthermore, the study examines the interaction effects between sustainability committees and green audits on the efficacy of corporate social responsibility. Our results reveal that sustainability committees significantly strengthen the nexus between corporate social responsibility investments and effective climate change mitigation strategies, while green audits enhance firm capabilities to navigate climate policy uncertainties. Collectively, these findings suggest that robust corporate social responsibility practices contribute to corporate value creation in the face of climate-related challenges.

Citation

Mohy‐ud‐Din, K., Shahbaz, M., & Du, A. M. (2025). Corporate social responsibility and climate change mitigation: Discovering the interaction role of green audit and sustainability committee. Corporate Social Responsibility and Environmental Management, 32(1), 1198-1212. https://doi.org/10.1002/csr.3011

• Journal Article Type: Article
• Acceptance Date: Oct 2, 2024
• Online Publication Date: Oct 16, 2024
• Publication Date: 2025-01
• Deposit Date: Jan 29, 2025
• Journal: Corporate Social Responsibility and Environmental Management
• Print ISSN: 1535-3958
• Electronic ISSN: 1535-3966
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 32
• Issue: 1
• Pages: 1198-1212
• DOI: https://doi.org/10.1002/csr.3011
• Keywords: climate policy uncertainty, corporate resilience, green audit, sustainability committee, sustainable corporate social responsibility