How <scp>CSR</scp> Disclosure Quality and Employee Engagement Boost Environmental Outcomes in the Textile Sector?

ABSTRACT The goal of this research is to examine the relationship between green leadership and environmental performance. The perceived quality of corporate social responsibility disclosure is examined as a mediator and employee involvement as a moderator in the textile industry. This study scrutinized the relationship using quantitative research methodology and a sample of 530 employees working in the logistics, import/export, and packing departments was compiled. The structural model and hypotheses were tested through Partial Least Squares Structural Equation Modeling (PLS‐SEM). The data show that leaders committed to sustainable practices, that is, green leadership and PQCSR significantly predict environmental performance. Moreover, the PQCSR significantly enhances the link between green leadership (GL) and environmental performance (EP). Additionally, in the textile industry, employees' involvement remains a driving force, strengthening the relationship between GL and EP. The enhanced CSR reporting practices create positive perceptions of employees. This furthers employees' involvement and improves green leadership initiatives for the environmentally responsible textile industry. Textile companies that follow CSR disclosure quality adopt transparent communication's impact on employee involvement and environmental results. This research studies the rarely observed relationships in the textile industry in the light of stakeholder theory. By examining CSR disclosure perceived quality, this research shows novel insights for shaping both employee involvement and environmental performance.