Environmental Governance as a Mediating and Moderating Variable Between Environmental Auditing and Sustainable Performance

• Published in: Foundations of management Vol. 17; no. 1; pp. 7 - 24
• Main Authors: ABDULHUSSEIN, Azher Subhi, ABBAS, Ali Abdulhassan
• Format: Journal Article
• Language: English
• Published: Warsaw Sciendo 01.01.2025; De Gruyter Poland
• Subjects: Auditing; Audits; Decision makers; Economic Performance; Environmental accounting; Environmental Auditing; F64; Governance; Iraqi Environmental Policies; O13; O44; Q56; R11; Sustainability; Sustainable Performance; Iraq
• ISSN: 2300-5661; 2080-7279; 2300-5661
• DOI: 10.2478/fman-2025-0001

This study aims to determine the impact of environmental governance (EG) as a mediating and moderating variable between environmental auditing (EA) and sustainable performance (SP) in Al-Noura factory, Karbala, Iraq. The impact of environmental auditing upon improving the sustainable performance and the role of EG in increasing the responsibility among the industries were also analyzed. For this study, the authors considered Al-Noura factory, located at Karbala, Iraq, and the data were collected in September 2023 from 183 respondents and analyzed using partial least squares-structural equation modeling (PLS-SEM) technique. The outcomes infer the strong impact of environmental audit on sustainable performance and EG, while the environmental governance’s impact on sustainable performance was partially significant. Based on the indirect effect, the study confirmed the mediator role played by EG between environmental auditing and sustainable performance. Based on the study outcomes, policy recommendations have been made for the decision makers at both organizational and government levels.