The Impact of Pakistan’s Environmental Laws on Corporate Social Responsibility (CSR) in Industrial Sectors: A Quantitative Survey Analysis

Abstract

This research is a quantitative study that examines how environmental laws in Pakistan, which regulate the environment, influence Corporate Social Responsibility (CSR) practices in the industrial sector. A survey was conducted among 497 workers in manufacturing companies in Karachi, Lahore, and Faisalabad, providing insight into the relationship between regulatory pressure and CSR adoption. The results indicate a positive relationship between regulatory stringency and CSR engagement (b = 0.42, p < 0.01), implying that more stringent environmental regulations prompt firms to become more committed to sustainable practices. Moreover, there is a mediating relationship between regulatory pressure and green innovation, as green innovation acts as a facilitator in translating regulatory pressure into actual environmental programs. The second implication of the work is the significance of environmental laws in encouraging green activities within the emerging economies, especially in regulated Pakistan, where compliance is not entirely enforced. Although the study acknowledges the value of environmental regulations, it notes that their effectiveness is marred by the fact that more than half of the respondents indicated that enforcement is inadequate. All in all, this study highlights the need for more effective enforcement tools to ensure that regulatory regimes can effectively promote CSR and sustainable development in the industrial sector. This research supports the discourse on how the legal environment can impact corporate conduct, especially in the developing world, which is struggling to deal with its complexities.