Navigating green horizons: An empirical exploration of business practices aligned with environmental goals in the era of sustainable economy

Abstract

AbstractIn modern business operations, ensuring that business strategies are in harmony with environmental goals has emerged as a pivotal consideration. More and more companies are realizing the significance of integrating environmentally friendly methods into their activities. This boosts their performance and adds value for stakeholders in an economy focused on sustainability. This quantitative research explores the alignment of business practices with environmental goals in the context of green finance (GF) and corporate strategy for enhanced performance and stakeholder value within a sustainable economy. Utilizing a structured online questionnaire, data was collected from 420 entrepreneurs through a stratified random sampling method, ensuring diverse representation. The subsequent analysis using SPSS software yielded robust statistical insights into the intricate relationships between variables. The findings support six hypotheses, indicating that strategic integration of GF positively influences financial performance, enhances resilience, positively affects stakeholder satisfaction, fosters innovation, leads to cost efficiency, and facilitates long‐term sustainable growth. Investigating how GF‐driven practices lead to cost efficiency and enhance operational effectiveness brings forth practical implications for organizations seeking financial savings through sustainable practices. This aspect introduces a novel perspective on the financial benefits of green initiatives. These results contribute as empirical evidence to the field of GF, offering practical insights for businesses, policymakers, and researchers seeking to align strategies with environmental goals for sustainable and responsible corporate practices.