Corporate Environmental Responsibility and Change Readiness: The Moderating Role of Perceived circular economy Drivers and mediating role of Perceived circular economy Barriers: A conceptual framework

Abstract

As concerns about environmental sustainability continue to grow, many corporations are adopting Corporate Environmental Responsibility (CER) practices as a means of mitigating their environmental impact. However, the success of these efforts is often contingent on the organization's Change Readiness (CR), or its ability to adapt to environmental change. This paper proposes a conceptual framework that examines the moderating role of Perceived Circular Economy (CE) Drivers and the mediating role of Perceived CE Barriers in the relationship between CER and CR.The proposed framework suggests that Perceived CE Drivers (such as resource efficiency, closed-loop systems, and waste reduction) can enhance the positive relationship between CER and CR by strengthening the motivation and commitment of employees and stakeholders. At the same time, Perceived CE Barriers (such as lack of knowledge, resources, and infrastructure) can act as a barrier to the implementation of CER practices, ultimately hindering the organization's CR. The proposed framework also suggests that Perceived CE Barriers can mediate the relationship between CER and CR, as the barriers associated with CER can impact an organization's ability to adapt to environmental change. Overall, this conceptual framework highlights the importance of considering both Perceived CE Drivers and Perceived CE Barriers when examining the relationship between CER and CR. By doing so, organizations can better understand the potential barriers to successful implementation of CER practices and work to mitigate them, ultimately enhancing their ability to adapt to environmental change and promote sustainability.