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INTRODUCTION

1.1 Background of the study

1.2 Statement of the Problem

1.2.1 Purpose of Study

1.3 Objectives of the study

1.3.1 General Objective

1.3.2 Specific Objectives

1.4 Research questions

1.5 Significance of the study

1.6 Overview of Methodology

1.7 Scope of the study


THE EFFECTS OF SUSTAINABLE
1.8 Limitations of the Study
LEADERSHIP ON SUSTAINABLE
1.9 Organisation of the Study
PERFORMANCE : THE MEDIATING AND
1.10 Operational definition of terms
MODERATING RULES OF GREEN COMMITMENT
Eminent Group
AND STAKEHOLDERS' NEEDS

. PROJECT TOPIC
CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

In recent years, the concept of sustainability has garnered considerable attention across

diverse sectors, notably in business, underscoring the imperative for organizations to adopt

environmentally responsible practices. Central to this discourse is the emergence of

sustainable leadership, which underscores the pivotal role of leaders' conduct and attitudes in

nurturing sustainable practices within organizations (Brown & Treviño, 2019). Sustainable

leadership embodies principles such as ethical decision-making, long-term orientation, and

incorporating environmental and social considerations into business strategies.

Furthermore, the concept of sustainable performance has gained traction as organizations

endeavour to harmonize economic growth with environmental and social stewardship.

Sustainable performance entails organizations’ ability to achieve their objectives while

mitigating adverse environmental impacts and enhancing positive social outcomes (Bansal

& Song, 2017). Achieving sustainable performance necessitates a holistic approach that

integrates environmental, social, and economic dimensions into organizational operations

and decision-making frameworks.

Sustainable leadership is not only about complying with regulations; it involves

proactive engagement with stakeholders to identify and address environmental and social

challenges (Elkington, 1997). Leaders who embrace sustainable practices recognize that

environmental degradation and social inequalities can pose significant risks to their

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organizations in the long run. Therefore, they prioritize initiatives that go beyond short-term

profit maximization to promote environmental sustainability, social justice, and economic

resilience (Chen & Chang, 2013).

Moreover, sustainable leadership is characterized by a forward-thinking approach that

considers the interconnectedness of environmental, social, and economic systems (Bakker et

al., 2015). This holistic perspective acknowledges that organizational success is contingent

upon the health and well-being of ecosystems, communities, and economies. By adopting

sustainable leadership practices, organizations can foster innovation, enhance

competitiveness, and build trust with stakeholders (Frick et al., 2019). In today's business

landscape, sustainability has evolved from being a mere regulatory requirement to becoming

a strategic imperative for organizations (Elkington, 1997). Organizations are increasingly

recognizing that proactive sustainability strategies can lead to competitive advantages,

including enhanced brand reputation, cost savings, and improved stakeholder relations

(Frick et al., 2019). Sustainable leadership plays a central role in driving these initiatives by

influencing organizational culture, setting the direction for sustainability efforts, and

fostering responsible decision-making practices (Chen & Chang, 2013).

One key aspect of sustainable leadership is its emphasis on stakeholder engagement and

collaboration (Sharma & Henriques, 2005). Leaders recognize that addressing complex

sustainability challenges requires collective action involving various stakeholders, including

employees, customers, suppliers, governments, and civil society organizations. By involving

stakeholders in decision-making processes, leaders can gain valuable insights, build

partnerships, and generate shared value for all parties involved (Jabbour et al., 2018).

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In addition, sustainable leadership is closely linked to organisational culture and values

(Fullan, 2014). Leaders who espouse sustainability principles cultivate a culture of

responsibility, accountability, and continuous improvement within their organizations. They

inspire employees to embrace sustainability as a core value and integrate it into daily

operations, decision-making processes, and strategic planning (Chin & Trimble, 2019).

Organizational culture also plays a crucial role in supporting sustainable leadership

initiatives (Fullan, 2014). Sustainable leaders cultivate a culture of sustainability by

promoting values such as integrity, transparency, and accountability (Chin & Trimble, 2019).

This culture permeates throughout the organization, influencing employee behaviors,

attitudes, and actions towards sustainability

Green commitment is a cornerstone in discussions of sustainable leadership and

performance. Green commitment denotes an organization's steadfast dedication to

environmentally sustainable practices, encompassing initiatives aimed at curbing carbon

emissions, minimizing waste generation, and preserving natural resources (Zhu & Sarkis,

2020). Organizational values, leadership priorities, and stakeholder pressures often shape

green commitment.

Stakeholders wield considerable influence in shaping organizational sustainability

endeavours, as their interests and expectations inform decision-making processes and

strategic agendas. Stakeholders comprise a broad spectrum of individuals and groups,

including employees, customers, suppliers, communities, and regulatory bodies, each

harbouring unique perspectives on environmental matters and sustainability initiatives

(Epstein & Roy, 2020). An in-depth understanding of stakeholders' needs and preferences is

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imperative for organizations to effectively engage with them and garner support for

sustainable practices.

In summary, sustainable leadership is a multifaceted concept that encompasses

environmental stewardship, social responsibility, and economic viability. Leaders who

embrace sustainable practices recognize the interconnectedness of environmental, social,

and economic systems and prioritise initiatives that create value for stakeholders while

mitigating environmental impacts. By fostering stakeholder engagement, promoting

organizational culture, and embracing innovation, sustainable leaders can drive positive

change and ensure the long-term success of their organizations.

1.2 STATEMENT OF THE PROBLEM

Despite growing awareness of the importance of sustainability in leadership, there remains a

gap in understanding how sustainable leadership practices impact organizational

performance in terms of environmental commitments and stakeholder engagement. Although

various studies have explored the individual components of sustainability, scant attention has

been paid to the intricate mechanisms through which sustainable leadership impacts green

commitment and stakeholders' engagement in sustainability endeavours. Moreover, evidence

suggests that sustainable leadership positively influences organisational sustainability

efforts, the mechanisms through which this occurs and the extent of its impact on green

commitment and stakeholder satisfaction require further investigation.

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Furthermore, there is a need for comprehensive research that examines the

interconnectedness between sustainable leadership, sustainable performance, green

commitment, and stakeholders' needs within organizational contexts.

This research endeavours to bridge this gap by investigating the effects of sustainable

leadership on sustainable performance, with a particular focus on the mediating role of green

commitment and the influence of stakeholders' needs.

1.2.1 PURPOSE OF THE STUDY

This research aims to investigate the effects of sustainable leadership on sustainable

performance, specifically focusing on the rules of green commitment and meeting

stakeholders' needs. By exploring these relationships, the study seeks to contribute to a

deeper understanding of how leadership behaviours and organizational practices influence

sustainability outcomes.

1.3 OBJECTIVES OF THE STUDY

This section looks at the clear illustration of this study sense of purpose and direction. The

following research objectives have been set out to be of significance in helping to arrive at

that aim:

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1.3.1 GENERAL OBJECTIVES OF THE STUDY

The general objective of this research is to explore the effects of sustainable leadership on

sustainable performance, focusing on the rules of green commitment and stakeholders'

needs.

1.3.2 SPECIFIC OBJECTIVES OF THE STUDY

The specific objectives of this study are as follows:

1. To analyze the relationship between sustainable leadership behaviours and organisational

green commitment.

2. To assess the impact of sustainable leadership on meeting stakeholders' needs.

3. To assess the impact of green commitment on sustainable performance.

4. To explore the mechanisms through which sustainable leadership practices contribute to

sustainable performance.

1.4 RESEARCH QUESTIONS

To address the objectives outlined above, the following research questions will guide this

study:

1. How do sustainable leadership behaviours influence organisational green commitment?

2. What is the impact of sustainable leadership on meeting stakeholders' needs?


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3. What is the impact of green commitment on sustainable performance?

4. What mechanisms mediate the relationship between sustainable leadership and sustainable

performance?

1.5 SIGNIFICANCE OF THE STUDY

This study holds significance on multiple fronts. Firstly, it contributes to the extant literature

on sustainable leadership and performance by offering insights into the mechanisms through

which sustainable leadership practices impact organizational outcomes. Secondly, it provides

actionable implications for leaders and managers seeking to bolster their organizations'

sustainability initiatives by understanding the significance of green commitment and

stakeholder engagement. Additionally, this research bears broader implications for

sustainability policy and practice, informing discussions on the role of leadership in

addressing environmental challenges and promoting sustainable development. Finally, this

study holds significance for both theory and practice. Theoretically, it contributes to the

growing body of knowledge on sustainable leadership by providing empirical evidence of its

effects on organizational outcomes. Practically, the findings can inform organizational

leaders, academics, policymakers and sustainability practitioners about the importance of

integrating sustainability principles into leadership practices to enhance performance and

address stakeholder concerns.

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1.6 OVERVIEW OF THE METHODOLOGY

This research will adopt a qualitative approach to explore the complex relationships between

sustainable leadership, green commitment, and sustainable performance. Data collection

method will include semi-structured interviews, focus group discussions, and documentary

analysis allowing for a comprehensive understanding of the effects of sustainable leadership

on sustainable performance. Thematic analysis will be employed to analyse the qualitative

data and derive key themes and patterns.

1.7 SCOPE OF THE STUDY

This study will focus primarily on the effects of sustainable leadership on sustainable

performance within the context of organizational settings. It will specifically examine the

role of sustainable leadership in driving green commitment and addressing stakeholders'

needs. The study will involve organizations from various sectors, with a particular emphasis

on those actively engaged in sustainability initiatives.

1.8 LIMITATIONS OF THE STUDY

While efforts will be made to ensure the validity and reliability of the findings, this study

may be subject to certain limitations. These may include constraints related to sample size,

access to organizations, and potential biases in data collection and analysis. Additionally, the

generalizability of the findings may be limited by the specific contexts and characteristics of

the organizations involved.

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Moreover, the study's reliance on qualitative research methods may limit the ability to

establish causal relationships between variables.

1.9 ORGANIZATION OF THE STUDY

This study will be organized into several chapters, each focusing on different aspects of the

research topic. Chapter Two will review relevant literature on sustainable leadership, green

commitment, and sustainable performance. Chapter Three will outline the research

methodology, including data collection and analysis procedures. Chapter Four will present

the findings of the study, while Chapter Five will discuss the implications of the findings,

offer recommendations, and suggest areas for future research.

1.10 OPERATIONAL DEFINITION OF TERMS

Certainly, here are some additional operational terms that researchers have commonly used

in the context of sustainable leadership and related concepts:

 Corporate Social Responsibility (CSR): The voluntary actions taken by companies

to address social, environmental, and economic impacts of their operations, beyond

legal requirements.

 Triple Bottom Line (TBL): A framework that evaluates organizational performance

based on three dimensions: economic, social, and environmental.

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 Environmental Management System (EMS): A systematic approach to managing

an organization's environmental impacts, often based on standards such as ISO

14001.

 Socially Responsible Investing (SRI): Investment strategies that consider

environmental, social, and governance (ESG) criteria alongside financial returns.

 Ethical Leadership: Leadership characterized by integrity, honesty, fairness, and

concern for the well-being of others.

 Corporate Governance: The system of rules, practices, and processes by which a

company is directed and controlled, including oversight of sustainability issues.

 Sustainable Development Goals (SDGs): A set of global goals adopted by the

United Nations to address social, economic, and environmental challenges by 2030.

 Circular Economy: An economic model aimed at minimizing waste and

maximizing the use of resources by closing material loops and promoting

regenerative practices.

 Life Cycle Assessment (LCA): A methodology for evaluating the environmental

impacts of a product, process, or service throughout its entire life cycle.

 Shared Value: A business strategy that aims to simultaneously create economic

value for shareholders and social value for communities.

 Corporate Citizenship: The extent to which a corporation fulfils its societal

responsibilities beyond legal obligations, including philanthropy, community

engagement, and environmental stewardship.

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