<scp>CSR</scp> Fraud, Employee Green Behaviour, Green Capability: The Mediating Role of Person‐Organisation Fit

ABSTRACT The aim of this study is to enrich scholarly discourse on sustainable development by presenting empirical findings aimed at mitigating fraudulent activities linked to corporate social responsibility (CSR). As a focus of study, we examine the influence of employee green behaviour and green capability on CSR fraud, with person‐organisation fit as a mediating factor. To deal with such concerns, questionnaires were administered to eight mining companies operating in Indonesia, located in East Java Province. The findings demonstrate that person‐organisation (P‐O) fit has a significant negative effect on corporate social responsibility fraud (CSRF), whilst employee green behaviour (EGB) and green capability (GC) positively influence P‐O fit. Furthermore, EGB and GC interact to strengthen P‐O fit, which in turn mediates their partial relationship with CSRF. The results also support the mediated moderation effect, indicating that the combined influence of EGB and GC indirectly impacts CSRF through P‐O fit. However, demographic factors (age, education, gender and tenure) do not significantly affect CSRF, and alternative paths do not provide additional significant insights beyond the main model. Theoretical and practical implications are discussed.