Does creation-oriented culture promote ESG activities? Evidence from the Chinese market

Abstract

This study investigates the relationship between a creation-oriented culture and environmental, social, and governance activities in Chinese listed companies between 2008 and 2022. We conduct a textual analysis of firms’ annual reports to quantify the creation-oriented culture and environmental, social, and governance levels. The results reveal that a creation-oriented culture positively affects environmental, social, and governance activities. The findings also show that creation-oriented culture can positively affect environmental, social, and governance activities through the channels of corporate green innovation and chief executive officers’ career horizons. The findings of this study have implications for stakeholders and policymakers aiming to enhance environmental, social, and governance activities at the corporate level.