Keywords

Environmental Protection Enterprise, Enterprise Sustainable Development, Corporate Governance, Enterprise Growth

Introduction

Sustainable development is a major theoretical and practical issue involving population, resources, economy, society, environment, and other aspects common to all humanity and is a joint development goal pursued by all humanity. Therefore, the country's sustainable development is an important part and a prerequisite for the national economy's sustainable, healthy, and coordinated development.

Among the studies related to the sustainable development of enterprises, past studies have shown on innovation systems (Gerasimova, 2016), industrial policies (Anh & Van, 2016), government subsidies (Stehnei, 2017), development evaluation (Xu, 2018). Combined with the current research on the sustainable development of environmentally friendly enterprises, most of them provide policies, recommendations, and evaluations from a macro perspective. However, few studies examine the relationship between corporate sustainability and business growth from a behavioral perspective. Also, to further expand the research model, the study considers the inclusion of two elements (employees and corporate governance) that are very important in corporate sustainability. Therefore, this paper conducts a relevant study from a behavioural perspective, defines an operational definition of sustainability variables, establishes the dimensions of corporate environmental sustainability, and conducts measurement. Thus, it establishes the impact of environmentally friendly corporate sustainability on corporate growth and enriches previous research models with employee engagement and corporate governance as mediating variables to explore the mechanism of action between variables.

Literature Review and Development of Hypotheses

Variable Definition

Sustainable Development of Enterprises

Martin (2016) has summed up the following three consensuses on the theory of sustainable development. (1)we must adhere to scientific and technological innovation to overcome growth stagnation (provide development power);(2) The increase of wealth must not be at the expense of the ecological environment (maintaining the quality of development);(3) We must realize co-construction and sharing, promote social harmony, overcome social unrest and disorder (seek development equity). In terms of theoretical construction, Niu (2014) believes that the theoretical connotation of enterprise sustainable development can be condensed and measured by three organic and essential unified elements, which are respectively the "power element," "quality element," and "equity element" of enterprise development.

Employee Engagement

Kahn (1990) put forward the concept of engagement earlier. He pointed out that engagement refers to combining self-elements such as personal emotion, ability, and other resources with work roles. Sultana and Jabeen (2018) defined employee engagement as the degree of investment in the performance of work roles. That is, employees will produce professionalism only when they combine themselves with work roles. Jiang divided engagement into three dimensions: behavior, cognition, and emotion.

Cognitive engagement is mainly reflected in their understanding of the classification and characteristics of the environmental protection industry, emotional engagement is mainly reflected in helping local industries carry out environmental protection maintenance, and behavioral engagement is mainly reflected in the use of equipment used in the process of environmental protection.

Corporate Governance

Corporate governance originates from solving the agency problem caused by the separation of two rights, and its primary purpose is to ensure that the interests of investors and stakeholders are not damaged. There are mainly shareholder theory and stakeholder theory. Bhaduri et al. (2016) believe that corporate governance should pay more attention to the interests of shareholders and all stakeholders. Crowther et al. (2017) believe that corporate governance is a set of institutional arrangements to balance the relationship between shareholders, directors, management, and other stakeholders. Its ultimate purpose is to improve enterprise efficiency and enterprise value, realize the enterprise's long-term development, and protect the interests of investors.

Generally speaking, corporate governance mainly includes three levels: shareholders, board of directors, and incentive mechanism. The shareholder level involves ownership concentration and ownership nature. A higher ownership concentration can reduce the agency problem caused by separating shareholders' and personal interests. The board of directors is the core of modern environmental protection governance. The difference and complementarity of knowledge among directors and an appropriate board of directors can alleviate the agency problem of managers in technological innovation and promote managers to carry out technological innovation activities. Salary incentive is the most common incentive method. A high salary is the embodiment of employee value. Some companies have successively implemented management stock ownership plans and option incentive plans for management and core technicians.

Variable Relationship

Sustainable Development and Employee Engagement

The sustainable development of enterprises is determined by dynamic factors, quality factors, and fairness factors, and it also affects employee loyalty. In their research, Alexandrovna, Nikolaevna, et al., (2018) elaborated the direct relationship between sustainable enterprise development and employee engagement and put forward the view that employee engagement is determined by enterprise development driving factors in enterprises. Matinaro Ville, et al., (2019) studied the relationship between enterprise sustainable development and employee engagement and found that good enterprise fair development factors always bring high employee satisfaction and will have a lag effect: customers' corresponding enterprise growth. Thang, et al., (2021), in the research on the sustainable development of banking enterprises, found that the promotion of sustainable development of banking enterprises will directly produce higher employee engagement and establish a good customer enterprise growth comprehensive quality and market share of enterprises. Furthermore, Haitong, et al., (2020) believe that when employees can get the resources they want or feel the fairness of resource allocation, they will enhance their identification with the organization and regard the organization as an essential part of themselves.

For environmental protection enterprises, employee engagement comes from national policies and resource preference, the value of the company's position in the social environment, and the relatively fair and just working environment. If the sustainable development of the enterprise can make employees rely on the company, the employee's satisfaction with environmental protection enterprises is higher. On the other hand, if customers feel that their needs are not met, the employee's satisfaction is lower; There may even be negative emotions. Based on the above research, we propose the following hypotheses.

H1 Sustainable development has a positive impact on employee engagement

Sustainable Development and Corporate Governance

Zh allaeva (2020) believes that corporate governance is a set of institutional arrangements to balance the relationship among shareholders, directors, management, and other stakeholders. Its ultimate goal is to improve the efficiency and value of enterprises, realize the long-term development of enterprises and protect the interests of investors. Furthermore, as sustainable development is the core condition for any enterprise to maintain long-term competitiveness, good corporate governance should be guided by sustainable development. Maryna adamenko, et al., (2020) believed that the sustainable development of enterprises has a direct impact on company management. Mehul Patel (2015) proved that sustainable development is an essential variable in the functional relationship between corporate governance utility and cost. Wenjiao Cai & Jianjun Wang (2020) proved the relationship between sustainable development and corporate governance. Fan Zeng, et al., (2020) also showed a relationship between the two through several verifications, and the relationship was concretely numerical.

In environmental protection enterprises, the factors of development power, quality, and fairness can make employees' perceived value higher, and corporate governance is relatively easy. Moreover, once all employees have common goals, it will reduce the difficulty of corporate governance. Based on the above research, we propose the following hypotheses.

H2 The sustainable development of enterprises has a positive impact on corporate governance.

Sustainable Development and Enterprise Growth

Many studies on the relationship between sustainable development and growth show that sustainable development positively impacts enterprise growth. Furong Guo, et al., (2017) found that three factors affect the growth of enterprises. These three factors are the dynamic element of development, the quality element of development, and the fair element of development, and these three factors are the measurement factors of sustainable enterprise development. Klistik & huseynov ARIF (2021) also believes that the sustainable development of enterprises is an essential driving factor for the development of enterprises. Ptak Chmielewska Aneta, et al., (2021) think that service value will affect the overall enterprise sustainable development and affect the enterprise transformation through overall satisfaction.

To sum up, the study shows that the sustainable development of enterprises has a positive impact on enterprise growth. This study also assumes that the sustainable development of enterprises has a positive impact on enterprise growth. Based on the above research, we propose the following hypotheses.

H3 The sustainable development of enterprises has a positive impact on the growth of enterprises

Corporate Governance and Enterprise Growth

Enterprise growth is affected by many factors, such as the growth of employees, enterprise profits, technological innovation, market share. Therefore, there is an inevitable relationship between corporate governance and the growth of the enterprise. Rushdi, et al. (2020) pointed out that clarify the power, responsibility, and influence of different stakeholders and establish incentive-compatible institutional arrangements between principal-agent. It is the premise to improve the strategic decision-making ability of enterprises and create value management for investors.

Stanley ogoun, et al., (2020) believes that corporate governance plays a decisive role in enterprise growth. Omer unsal & Blake Rayfield (2020) in his research, through the analysis of some industries, it is found that corporate profit is an evaluation and judgment of customers on their corporate governance and occurs after the transaction behavior. Therefore, corporate governance is the antecedent of enterprise reform and enterprise transformation. In environment-friendly enterprises, through the management, production, and sales of the company's resources, the actual profits, technological innovation, and market share are improved to stimulate the transformation and reform of enterprises. Based on the above research, we propose the following hypotheses.

H4 Corporate governance has a positive impact on enterprise growth

Employee Engagement and Enterprise Growth

As for the relationship between employee engagement and enterprise growth, Chinese and foreign scholars have come to different conclusions through theoretical or empirical research. Some scholars believe that there is a strong correlation between employee engagement and enterprise growth. Through the study of service products, Lambert Abbie, et al., (2021) found that employee satisfaction directly affects the growth of enterprises, Weisha Wang, et al., (2021). In the study of banking services and hotel services, we found that employee engagement is related to enterprise development. Van Nguyen long thang, et al., (2021), in the study of retail services, found that employee engagement has a significant positive relationship with enterprise reform and transformation.

Some scholars also believe that there is a correlation between employee dedication and enterprise growth under certain conditions. Ibrahim (2020) found that employee engagement and enterprise transformation have two fundamental problems. Sabu, et al., (2020) believes in a linear and nonlinear relationship between employee engagement and enterprise transformation. Sam erevbenagie usadolo (2020) believes that there is a curvilinear relationship between customer satisfaction and enterprise growth. Based on the above research, we propose the following hypotheses.

H5 Employee engagement has a positive impact on enterprise growth

The Mediating Role of Corporate Governance

Mizruchi (1983) believes that in the environment of sustainable development, the role of the board of directors in the organization is reflected in clarifying the objectives of shareholders, focusing the attention of the company's top managers on the company's performance, and promoting the development of enterprises through the formulation and implementation of strategic decisions. Tirthankar nag, et al., (2020) believed that the critical way to improve the company's development is the board's participation in its strategic decision-making, and it is also the critical factor for the board to play its strategic function.

aehean Choi, et al., (2020) believe that through solid management at the management level, the degree of diversification of the company will be reduced to a certain level, and then the company's operating performance will be improved. Vasant Raval (2020) also believes that the qualifications and working ability of a company's internal board members will directly impact the scientificity and rationality of the company's decision-making and then affect the company's operational efficiency and overall performance.

Omer & Blake (2020) uses corporate governance as an intermediary variable to analyze the relationship between board heterogeneity and corporate value. He points out that corporate governance can enhance corporate value. However, at the same time, corporate governance also has a partial intermediary effect between board heterogeneity and corporate value. It shows that the functional background and heterogeneity of the board of directors directly affect the promotion of the company's value and indirectly affect the company's value by acting on its diversification strategy. Based on the above research, we propose the following hypotheses.

H6 Corporate governance plays an intermediary role in the relationship between sustainable development and growth.

The Mediating Role of Employee Engagement

Meng et al., (2020) believe that the sustainable development of enterprises in the banking service industry directly affects the growth of enterprises and indirectly affects the reform of enterprises by affecting employee engagement. Hafner Marco, et al., (2020) used empirical research to show that the sustainable development of electronic enterprises significantly impacts enterprise growth, and employee perceived satisfaction significantly impacts enterprise transformation and reform. Zalman Leah, et al., (2020), the empirical results show that the level of sustainable development and word-of-mouth has a positive impact on employee engagement and enterprise development.

This paper analyzes the mediating effect of employee engagement between sustainable development and organizational performance and holds that sustainable development impacts organizational performance through strategic decision-making. Chen & Ho (2000) concluded that higher employee engagement could appropriately affect the growth of enterprise performance under the background of sustainable development. Obembe oluwanifemi oladipupo, et al., (2020), through the study of the original model of UE, it is found that employee engagement has a mediating effect between sustainable enterprise development and organizational performance. In addition, Simone meskelis, et al., (2020) studied the relationship between employee engagement and sales growth of the call center companies in the U.S. telecommunications service industry. The research results show that a diversification strategy based on improving employees' skill level and work motivation can usually improve the company's sales by reducing employee turnover. Based on the above research, we propose the following hypotheses.

H7 Satisfaction plays an intermediary role in the relationship between enterprise sustainable ` development and enterprise growth.

Outer Model and Scale Validation

Based on the literature research on the factors influencing the growth of environmental protection enterprises, the paper analyzes the factors influencing the sustainable development of environmental protection enterprises among the factors influencing the growth of enterprises and constructs a conceptual model of the factors influencing the growth of enterprises based on the sustainable development of enterprises by combining the previous scholars' research theories on the sustainable development of enterprises, the growth of enterprises, and the characteristics of work engagement. The model shows that the sustainable development of environmental protection enterprises has a positive impact on the growth of enterprises, and employee engagement and corporate governance play a mediating role between the sustainable development of enterprises and the growth of enterprises(as shown in Figure 1).

This study referenced existing literature to establish operational definitions and measurement items for all of the used constructs (as shown in Table 1).

Table 1 Measurement Items Of Constructs
Construet	Measurement item	Source
Dynamic (DS1- DS5)	Environmental protection enterprises have strong development ability in scientific research, technology, and other fields.	Niu W Y(2014)
	Environmental protection enterprises have excellent development potential in the future.
	In recent five years, environmental protection enterprises have developed faster than in the industry.
	The development efficiency of environmental protection enterprises is much higher than that of the same industry.
	Environmental protection enterprises have a strong driving force for sustainable development.
Quality (QS1- QS4)	Environmental protection enterprises are developing harmoniously in the industry.
	National policies and resources are inclined to environmental protection enterprises.
	Environmental protection enterprises can serve the ecological industry.
	Environmental protection enterprises play an irreplaceable role in national development.
Equity (ES1- ES4)	Environmental protection enterprises make relevant policies to achieve shared prosperity.
	There is little difference between the rich and the poor in environmental protection enterprises.
	There is little difference in the requirements of products, technology, and personnel in environmental protection enterprises.
	The quality requirements of staff in environmental protection enterprises are consistent.
Employee Engagement (EE1-EE6)	My work is full of meaning and value.	Sobia Sultana & Shaista Jabeen (2018)
	I think my work contributes to the achievement of organizational goals.
	I would like to introduce the benefits of working here to people outside the company.
	I will not quit the company easily.
	I put much energy into my work.
	I often do more than I ask for.
	II can experience a sense of accomplishment in my work.
Corporate Governance (CG1-CG4)	The equity structure of our company is reasonable.	Jensen & Ruback(1983),Duan Hui.(2019)
	The governance of our company's board of directors is reasonable.
	I am satisfied with the policies and regulations made by the top management of our company.
	The company can well coordinate the interests of internal and external personnel.
Enterprise Growth (EG1-EG5)	Compared with the competitors in the industry, the number of employees of enterprises grows faster.	JIANG Jian-hua & YANG Huan-huan.(2007)
	Compared with the competitors in the industry, the sales growth of the enterprise is faster.
	Compared with the competitors, the profit of enterprises grows faster.
	Compared with competitors in the industry, new environmental protection technologies or products grow faster.
	Compared with the competitors in the industry, the market share of enterprises grows faster.

Material and Methods

A partial least squares (PLS) research model was used to verify the model stability and hypotheses testing. SmartPLS 2.0 software was utilized to perform the PLS analysis (Ringle et al., 2005). PLS is a structural equation modeling (SEM) technique that is based on path analysis and regression analysis. This technique has recently become critical for analyzing causal relationship models with multiple constructs. PLS is superior covariance-based SEM for the following four reasons (Urbach & Ahlemann, 2010). (1) PLS can simultaneously process reflective indicators and formative indicators;(2) PLS yields stable parameter values from a small sample;(3) PLS overcomes the problem of multicollinearity;(4) PLS can analyze complex predictive models (with many research constructs and variables).

Subjects

From January to May 2021, the study surveyed the front-line employees and management of 202 insurance large, medium and small enterprises in the 2020 list of China's environmental protection industry using field survey and questionnaire survey to obtain corresponding data. A total of 260 questionnaires were distributed, and 260 were recovered, with a recovery rate of 100%. Through the review and screening of the questionnaire, 215 valid samples were obtained after eliminating the data with apparent contradictions, with an effective recovery rate of 82.7%.

Reliability Analysis and Convergent Validity

Two tests were performed to validate the construct validity: the convergent validity test and the discriminant validity test. Fornell & Larcker (1981) suggested that constructs exhibit convergent validity if the factor loads of the indicators are more significant than 0.5, the Average Variance Extracted (AVE) is more significant than 0.5, and reliability is greater than 0.7. Table 3 shows that all constructs comply with the suggestions proposed by Fornell & Larcker (1981), indicating good convergent validity. In addition, whether the square root of AVE was more significant than the correlation coefficient of the constructs was tested to confirm discriminant validity. According to Table 2 and Table 3, the constructs exhibited discriminant validity.

Table 2 Reliability Analysis And Convergent Validity.
Consturct	Measurement items	Factor loading	Cronbach's Alpha	rho_A	Composite reli	AVE
Dynamic (DS1- DS5)	DS1	0.929	0.925	0.926	0.947	0.817
	DS2	0.911
	DS3	0.885
	DS4	0.889
Quality (QS1- QS4)	QS1	0.873	0.926	0.927	0.947	0.818
	QS2	0.9
	QS3	0.928
	QS4	0.916
Equity (ES1- ES4)	ES1	0.908	0.91	0.91	0.937	0.787
	ES2	0.874
	ES3	0.882
	ES4	0.884
Employee Engagement (EE1-EE6)	EE1	0.91	0.93	0.934	0.945	0.742
	EE2	0.852
	EE3	0.856
	EE4	0.865
	EE5	0.871
	EE6	0.812
Corporate Governance (CG1-CG4)	CG1	0.869	0.852	0.854	0.9	0.692
	CG2	0.807
	CG3	0.83
	CG4	0.827
Enterprise Growth (EG1-EG5)	EG1	0.868	0.903	0.904	0.928	0.721
	EG2	0.838
	EG3	0.861
	EG4	0.847
	EG5	0.829

Table 3 Correlation Matrix
	CG	EE	EG	SD
CG	0.832
EE	0.55	0.861
EG	0.396	0.607	0.849
SD	0.631	0.524	0.49	0.713

Note1: Enterprise Growth=EG; Corporate Governance=CG; Employee Engagement=EE; Sustainable Development=SD

Note 2: The diagonal line of the correlation matrix represents the square root of AVE.

Inner Model and Hypotheses Testing

It can be seen from table 4 that among the hypotheses of H1, H2, H3, H4, and H5, the original sample (o) s is 0.524, 0.631, 0.254, 0.840, and 0.494, respectively, and the t-value is 9.239, 14.643, 3.070, 41.990 and 5.625 respectively, P<0.05, so the hypothesis of H1, H2, H3, H4, and H5 is valid.

Table 4 Summary Of Inner Model Results
Hypothesis	Path	Original Sample (O)s	T-value	Supported
H1	SD -> EE	0.524	9.239***	Yes
H2	SD -> CG	0.631	14.643***	Yes
H3	SD -> EG	0.254	3.070 *	Yes
H4	CG -> EG	0.84	41.990**	Yes
H5	EE -> EG	0.494	5.625**	Yes

Table 5   Mediation Effects Testing
Hypothesis	Parameter	Estimate	SE	Lower	Upper	P
H6	SD - CG - EG	0.179	0.058	0.061	0.289	0.002
H7	SD- EE - EG	0.248	0.059	0.242	0.471	0.001

The above table uses the Bootstrap method based on PLS to test the path coefficient, repeats 2000 samples, and calculates the 95% confidence interval. From the results of the above table, we can see that the practical value of the intermediary path [SD-CG-EG] is 0.179, the 95% confidence interval is [0.061-0.289] does not contain 0, and the p-value is less than the significant level 0.05, which indicates that the intermediary effect exists. Therefore, H6 is assumed to be accurate; The mediating path [SD- EE - EG] effect value is 0.248, the 95% confidence interval is [0.242-0.471] does not contain 0, and the p-value is less than the significant level of 0.05, indicating that the mediating effect exists, so the hypothesis H7 is valid.

Discussion

Based on the above research conclusions, this paper further analyzes the specific situation of China's environmental protection enterprises. It discusses the countermeasures to systematically and effectively promote the growth of environmental protection enterprises to improve the development connotation of environmental protection enterprises in the sustainable development strategy.

Through the research, we find that the dynamic, quality and equity factors in the sustainable development of enterprises significantly impact employee engagement, corporate governance, and enterprise growth. To improve the scientific research and development ability, environmental adaptability, and management ability of environmental protection enterprises, enterprise employees should not only master industry trends, technical knowledge, and scientific research ability. At the same time, we should constantly deepen the staff training system, train leaders to have agile, economic management thinking, keen market insight, deepen the training of employees' professional ability and have a certain understanding of the particularational market environment. Furthermore, under the guidance of national policies, improve the company's management process system and personnel supervision system, and shape employees' fair and just attitude in environmental protection enterprises (Li & Li, 2020).

In addition, the sustainable development of enterprises affects the company's growth and constantly pays attention to employee engagement and corporate governance. We should also improve the employee performance system. First, continuously strengthen the company's logistics support system from the perspective of behavior, cognition, and emotion, give strong support to employees in technology, logistics, and emotion, and strengthen strategic cooperation with various fields. For example, strategic cooperation with large enterprises in the industry improves the enthusiasm of employees. Second, encourage employees to participate in enterprise innovation and reform. Finally, improve the employee innovation policy of environmental protection enterprises and continuously improve the benefit distribution of employees.

By strengthening the construction of corporate culture and performance reward system, environmental protection enterprises should base themselves on their posts and do an excellent job in job innovation and scientific research incentives. Establish a scientific employee incentive mechanism. Executives who achieve higher corporate growth should be rewarded according to their performance level. The pension shall be paid reasonably according to their working years to encourage employees to work and serve the company long and stably. In addition, the company shall formulate safeguard provisions for employee management independence in the articles of association. For example, ensure that the salary and position of the employee management will not change abnormally, and the employee supervisor will not be maliciously dismissed at the end of his term of office. In this way, employees and management do not have to worry about hidden retaliation in the future and can devote themselves to their work.

Research Limitations and Future Work

The future, we can start with other variables, such as enterprise performance (Jiay et al., 2020). This research focuses on the relationship between the sustainable development of enterprises and the growth of enterprises and studies the factors that affect the sustainable development of environmental protection enterprises. Based on the theoretical research, this paper gives suggestions to improve the sustainable development of environmental protection enterprises. In the future, we can take the sustainable development of enterprises as a dependent variable to explore the influencing factors of the sustainable development of enterprises, such as talent training, Through the combination of theory and practice, it verifies the effective way to improve the sustainable development of environmental protection enterprises.

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