Does corporate environmental responsibility enhance sustainable development? a perspective based on green innovation

Abstract

This study investigates whether and how corporate environmental responsibility (CER) enhances manufacturing enterprise sustainability in China, incorporating green innovation mechanisms. Employing a panel of 237 Chinese listed firms over 20152021, we find CER participation significantly improves enterprise sustainability. This positive effect is further amplified by strengthening environmental regulations. We also demonstrate CER s influence is transmitted via stimulating green technology innovations. Additionally, our analysis reveals heterogeneity in CER s effectiveness across large versus small, state-owned versus private, and eastern versus central/western enterprises. As China balances economic targets with ecological goals amid industrial transformation stresses, these findings underline that embedding environmental stewardship within business decisions can catalyze win-win sustainable outcomes. However, contextual and structural differences modulate CER impacts, necessitating policy solutions tailored to localized, firm-level conditions.