This paper aims to explore how environmental management practices impact different dimensions of corporate sustainability. It also explores the mediating impact of environmental regulation and reports on the relationship between environmental management practice and corporate sustainability.
A brief focus group discussion and a preliminary test were conducted through a focused group meeting with industry experts before data were collected from senior management of 116 registered operations in the hospitality and tourism industry in the Maldives. To analyse the data, a mediation model is proposed and tested using partial least squares structural equation modelling.
Results showed that environmental management practices have a direct and positive effect on corporate sustainability. Furthermore, environmental regulation and reporting positively mediate the effect of environmental management practices on corporate sustainability. Among the sustainability dimensions, it is important to note that the social sustainability aspect has the highest impact, followed by the economic and environmental aspects of corporate sustainability.
Findings provide empirical evidence in understanding achieving corporate sustainability through environmental management practices. The study is practical for stakeholders and policymakers to follow through with the environmental regulations and be transparent on environmental reporting measures that impact overall sustainability.
This study serves as noteworthy research for stakeholders to evaluate against regulatory and reporting requirements for businesses they invest in the future. It adds value to the literature and attempts to advance environmental management and sustainability research in the context of small island developing states.
