The influence of green taxation, tax compliance, and employee behavior on environmental sustainability: The mediating role of corporate social responsibility

Environmental fiscal instruments are increasingly adopted to promote corporate sustainability; however, their effectiveness depends on internalisation mechanisms within organisations. This research investigates the mediating role of Corporate Social Responsibility (CSR) in the relationships among green taxation, tax compliance, employee behaviour, and environmental sustainability in Ghanaian organisations. Drawing on legitimacy theory, a quantitative approach was used, with a survey of 400 respondents, and the analysis was performed using SmartPLS 3.2.9. CSR was found to significantly mediate the effects of green taxation, tax compliance, and employee behaviour on environmental sustainability. Thus, Ghanaian organisations that adopt strong CSR practices are more likely to comply with environmental regulations without undermining their contextual legitimacy, resulting in better sustainability outcomes. The study contributes to the environmental governance literature and suggests a stronger role for CSR within regulatory frameworks to help facilitate sustainable development efforts in emerging economies such as Ghana. This paper offers original insights by empirically examining the mediating role of CSR in the relationships between green taxation, tax compliance, employee behaviour, and environmental sustainability within Ghanaian organisations: an area previously underexplored in both local and international literature.