Corporate Environmental Responsibility Research Articles

The demand for reporting environmental sustainability and social responsibility: insight from Saudi Arabia corporate reports

Purpose In countries where disclosing and reporting matters on sustainability are optional, what are the drivers promoting voluntarily disclosing information related to social responsibility and environmental sustainability corporate environmental and social responsibility? Exploring drivers promoting the demand for voluntarily disclosing information related to social responsibility and environmental sustainability in Saudi Arabia, where regulatory and professional bodies have not mandated information on corporate environmental and social responsibility, motivates this study. Design/methodology/approach A total of 48 individuals voluntarily participated in the survey. Findings Findings reveal that creating a better social, ethical and mental image, building a public relations image for the company, improving stakeholder trust in the company, signaling to investors the company’s care for the earth to meet the ethical motivation of stakeholders, enhancing corporate social responsibility awareness and exhibiting surpasses the mere generation of profits, all derive such disclosure. Such disclosure also signifies the firm’s value as well as improves the overall firm’s economic performance. Practical implications Regulatory and professional bodies must issue and adopt reporting models for entities, principally private companies, whether publicly traded or not, of the content. Their reports should aim to inform users and stakeholders about fulfilling the social and environmental responsibilities of entities toward society and its members. Social implications Out of the drivers for the demand, perceptions of elders toward meeting ethical motivation of senior management significantly differ from that of younger. Originality/value Few studies have been attempted on drivers of the demand for reporting environmental sustainability and social responsibility in an environment where such reporting is not mandated. This study offers insight from Saudi Arabian corporate reports.

Corporate environmental responsibility’s influence on risk-taking in Chinese A-share listed companies

Purpose This study aims to investigate the relationship between corporate environmental responsibility (CER) and risk-taking in Chinese A-share listed companies from 2011 to 2020. It seeks to understand the influence of CER on risk-taking behavior and explore potential moderating factors. Design/methodology/approach A quantitative approach is used, using data from Chinese A-share listed companies over the specified period. Regression analysis is used to examine the relationship between CER and risk-taking, while considering moderating variables such as performance aspiration, environmental enrichment and contextual factors. Findings The findings indicate that CER positively influences corporate risk-taking, with significant impacts on information asymmetry and corporate reputation. Moreover, positive performance aspiration strengthens the effect of CER on risk-taking, while negative performance aspiration and environmental enrichment weaken this effect. Cross-sectional analysis shows that the positive association between CER and risk-taking is more prominent for firms located in areas with strict environmental regulation, for nonstate-owned firms, and for firms with higher levels of internal control. Originality/value This research contributes to the literature by providing insights into the dynamics between CER and risk-taking in the Chinese market context. It expands existing knowledge by considering the influence of performance aspiration on this relationship, offering practical implications for firms seeking to enhance corporate performance through strategic management of environmental responsibilities.

Uncovering hidden truths: identifying the basics of corporate environmental responsibility

Uncovering hidden truths: identifying the basics of corporate environmental responsibility

The Influence Mechanism of Public Environmental Concern on the Corporate Environmental Responsibility: Evidence from China

The Influence Mechanism of Public Environmental Concern on the Corporate Environmental Responsibility: Evidence from China

Impact of Digital Transformation on Green Innovation in Manufacturing under Dual Carbon Targets

The development of green innovation in the manufacturing industry is crucial for sustainability, as it can lead to significant environmental and economic benefits. Meanwhile, the impact of digital transformation on green innovation in the manufacturing industry has been proven to be significant in a previous study. To further explore the impact of digital transformation on the development of green innovation in the manufacturing industry under the dual carbon goal, this article selects data from Chinese A-share manufacturing listed companies from 2013 to 2022 as the observation sample, proposes research hypotheses based on stakeholder theory, and conducts empirical analysis. The results indicate that digital transformation can significantly promote the development of green innovation in the manufacturing industry, which is transmitted through corporate environmental responsibility. Corporate environmental responsibility plays a partial mediating role in the impact of digital transformation on the development of green innovation. Meanwhile, media attention can strengthen the positive impact of digital transformation on green innovation. In heterogeneity analysis, it was found that the higher the institutional shareholding and analyst attention, the more likely a company’s digital transformation can promote green innovation. In addition, by comparing and analyzing the data of the two years before and after the proposal of the dual carbon target, it was found that the incentive effect of the dual carbon target did not achieve the expected effect in this article, which may be related to the short time of the proposal of the dual carbon target and the impact of the epidemic.

Resistance or motivation? Impact of climate risk on corporate greenwashing: An empirical study of Chinese enterprises

Increasing climate risk (CR) has pushed corporate environmental responsibility into the limelight, requiring a deeper understanding of its impact on corporate environmental behavior. This study examined the impact of CR on corporate greenwashing using data from A-share listed enterprises in China from 2009 to 2022. The findings indicate the following: (1) Augmented CR significantly discourages corporate greenwashing, primarily by improving corporate innovation capabilities; (2) Strong external and internal corporate governance magnifies the inhibitory effect of CR on greenwashing, stimulating authentic environmental actions during crises; (3) The impact of CR on greenwashing is more pronounced in executive teams with greater gender diversity, higher educational levels, shorter tenures, and increased visibility; (4) In the context of CR, greenwashing hinders corporate high-quality development; (5) The impact of CR is particularly notable in state-owned enterprises, enterprises in industries with lower competitive intensity, and enterprises in their maturity or decline stages.

Research on Corporate Environmental Responsibility: A Case Study of Multinational Corporations

In light of the expanding global environmental challenges, multinational corporations (MNCs) are often held accountable for their disproportionate role in environmental degradation. This study looks at how MNCs safeguard the environment and what factors lead to ecological dangers that are related with them. The production volumes of MNCs and their inclination to relocate pollution-intensive industries to developing countries are the specific subjects of the study. A few of the main obstacles that the study identifies to MNCs' environmental responsibility are the deficiency of the current international legal framework, the lack of harmonization of environmental legislation, and the tendency of developing countries' economic priorities to overlook strict environmental measures. To address these issues, the study recommends the following measures: the establishment of robust monitoring and accountability mechanisms; the direct imposition of practicable environmental liabilities; the strengthening of international judicial cooperation; and the clarification of judicial ambiguities regarding MNCs' legal responsibilities in the environmental sector. The paper uses a case study methodology to provide a comprehensive review of best practices and tactics for improving MNCs' environmental management. The findings underline the importance of governments working together to ensure that multinational firms' actions are consistent with environmental sustainability ideals.

Green wealth, green responsibility: How does natural capital influence corporate environmental practices?

This paper aims to understand the effects of natural capital on environmental responsibility. Based on a sample of 28,402 firm-year observations from 60 countries between 2010 and 2018, the results show that natural capital negatively affects companies’ environmental responsibilities. In particular, the availability of non-renewable natural capital leads firms to overexploit resources, leading to weaker engagement in environmental activities. We also show that the Paris Agreement in 2015 improved the focus of firms operating in natural capital–rich countries on environmental responsibility. Further evidence shows that the influence of natural capital on corporate environmental responsibility is more prevalent for firms in developing countries and manufacturing industries. This negative effect also holds for the emission-reduction and resource-use subdimensions of environmental responsibility. However, renewable natural capital positively affects environmental innovation. Our results are robust to endogeneity concerns.

Corporate Environmental Responsibility and Cultural Contexts: Fostering Pro-Environmental Behaviors in China's mainland and Hong Kong

Corporate Environmental Responsibility and Cultural Contexts: Fostering Pro-Environmental Behaviors in China's mainland and Hong Kong

Can issuing carbon neutral bonds promote low-carbon investment in renewable energy industry？

Guiding by the goal of carbon neutrality and carbon peaking, the importance of low-carbon finance in renewable energy industry is becoming increasingly prominent, and carbon neutral bond (CANB) is showing a strong development trend. This study explores the impact of CANB on low carbon investment (LOCI) in renewable energy industry based on the OLS method combined with the quarterly samples, and the following results are obtained. First, issuing CANB can lead to a 4.7 % increase in LOCI. Second, the higher the scale, duration, and rating of CANB, the more they can promote LOCI. Third, CANB may promote LOCI by strengthening corporate environmental responsibility and alleviating financing constraints, while CANB may reduce LOCI by increasing operational pressure. Fourth, CANB has a stronger promoting effect on the LOCI of large-scale firms, central state-owned firms, and eastern firms. Fifth, under the pressure of carbon peaking and public low-carbon attention, CANB has a higher promoting effect on LOCI. This study aims to provide policy implications for promoting low-carbon development of renewable energy firms.

Environmental Responsibility of Micro and Small Enterprises in The Services Sector in Baja California, Mexico, Its Effect on Competitive and Financial Performance

Objective: The study evaluates the impact generated by Corporate Environmental Responsibility (CER) activities on Competitive Performance (CP) and Financial Performance (FP) of Micro and Small Business (MSMEs) in the service sector in Mexicali, Baja California, Mexico. Theoretical Framework: From a sustainability perspective, corporate environmental responsibility and its relationship with various constructs and their interactions such as competitive and financial performance are analyzed. Method: A survey was developed and applied to 57 company managers in the following sectors: private sector medical laboratories, car repair and laundries, differentiated by the management of waste with potential environmental impact and greater demands in compliance with environmental standards. To confirm the hypotheses raised, an exploratory factor analysis and linear regressions of the constructs formed were applied. Results and Discussion: It was found that there is a strong relationship between CER and CP, however, there is no influence of CER on CP. Research implications: Service sector entrepreneurs continue to view RAE activities as expenses and financial burdens, which prevents them from taking RAE as a development strategy. They have not adopted strategies that allow them to benefit from the RAE actions they carry out, and it prevents a better environmental performance of SMEs in the service sector. Originality/Value: By demonstrating that there is no positive effect of RAE on finances, it is evidence of why the service sector continues to lag behind in its environmental performance and commitment, compared to other economic sectors at local and regional level. It also provides evidence in the theoretical discussion of the effect of RAE on the competitive and financial performance of the company.

“Green Companies” and Financial Performance: The Green Premium

We examine the relationship between Corporate Environmental Responsibility and Corporate Financial Performance for the S&P500 firms over a period of fifteen years. We test the effect of Jensen's alpha, stock returns, return-on-asset, size, sales, and profit on Corporate Environmental Responsibility by building a CAPM model of risk-adjusted excess returns under efficient-market hypothesis and introduce the “Green Premium,” the cost in stock return stockholders have to incur for their company's “greenness”. Although, “green” practices are positively related to sales and profit, the results suggest that market value of the company is not increased and that a significant negative relationship exists between “greenness” and stock's performance.

Green mergers and acquisitions and corporate environmental responsibility: Substantial transformation or strategic arbitrage?

Green mergers and acquisitions (GM&A) are pivotal for attaining green competitive advantages and fostering sustainable development. This study exploits data from Chinese publicly traded companies spanning 2010–2021 to examine the impact of GM&A on corporate environmental responsibility (CER). Utilizing a difference-in-differences design, the results document that GM&A significantly enhances firms' environmental responsibility. This conclusion remains robust after a comprehensive set of checks. GM&A spurs green technology innovation, eases financial constraints, and elevates corporate environmental awareness, thus mitigating environmental pollution. Additionally, the positive impact of GM&A on CER is particularly pronounced in regions with high market liberalization and firms with substantial social capital. These findings offer valuable insights for policymakers crafting GM&A policies to raise environmental quality and contribute to the literature on the relationship between GM&A and CER.

Corporate Environmental Responsibility, Media Attention and Financial Performance

Corporate Environmental Responsibility, Media Attention and Financial Performance

Collection channel selection strategy for a supply chain considering incomplete remanufacturing and shared environmental responsibility

AbstractThis article investigates a closed‐loop supply chain where the manufacturer and the retailer share corporate environmental responsibility regarding the environmental impact caused by non‐collected used products. To model the interactions between the two players, game theoretical models are established. The results show that (1) when the manufacturer's environmental responsibility is high, the follower‐managed collection is better than the leader‐managed collection. (2) The collection rate rises if the membership with high corporate environmental responsibility leads the channel or manages the collection. (3) Unless the manufacturer or consumers' environmental responsibility is sufficiently high, the retail price is higher in retailer‐managed collection than manufacturer‐managed collection.

The moderating effects of national cultural practices on the relationship between international diversification strategies and corporate environmental responsibility disclosures

This study examines the relationships between an important market strategy (international diversification) and corporate environmental responsibility disclosure (CERD), a nonmarket strategy. We rely on institutional theory and the stakeholder perspective and hypothesize a positive relationship between international diversification and CERD. We also hypothesize a direct effect of performance-based cultural practices (PBC) and socially supportive cultural practices (SSC), derived from the GLOBE culture database on CERD and its moderating effect on the international diversification – CERD link. The sample includes 335 large Multinational enterprises (MNEs) from 31 countries then distributed among three corporate social responsibility (CSR) regimes: European, Anglo-Saxon, and Asian and emerging markets. The results show support for the hypothesized relationships between international diversification strategies and CERD and that the direction of the relationship varies by region of the world. We find significant support for the moderating role of national cultural practices on the international diversification-environmental disclosure links.

Green finance pilot policy and corporate environmental social responsibility: empirical evidence from China's green finance reform and innovation pilot zones.

The establishment of green finance reform and innovation pilot zone (GFRIPZ) is a pivotal strategy for harmonizing the twin goals of economic prosperity and environmental preservation. By applying panel data on Chinese A-share listed firms from 2011 to 2022, this study examines the influence of China's green finance pilot policy on corporate environmental social responsibility (ESR) using a difference-in-differences (DID) model. The study's findings indicate that the green finance pilot policy promotes corporate environmental social responsibility. The results remain robust after a series of robustness tests. Moreover, mechanism analysis reveals that the pilot policy promotes firms' ESR through three key channels: financing constraints, green innovation, and corporate governance mechanisms. Additionally, analyst attention can positively moderate the promotional effect of the green finance pilot policy on corporate ESR. Furthermore, this study reveals that the green finance pilot policy's impact on corporate ESR is more pronounced among large-scale firms and firms operating in regions characterized by stringent environmental regulations and greater marketization. The empirical findings present evidence for enhancing ESR through the implementation of the green finance pilot policy in China and offer insights for refining the green finance system.

How to drive heavily polluting companies to fulfill environmental responsibility? The synergy between environmental regulation and digital media coverage

This paper addresses the question of how environmental regulation and digital media coverage, as formal and informal external monitoring mechanisms, affect corporate environmental responsibility fulfillment. Using the data of Shanghai and Shenzhen A-share listed companies in China's heavily polluting industries, this study showed that both environmental regulation and digital media coverage significantly improve responsive and strategic environmental responsibility fulfillment. After distinguishing the media tone, it was found that positive digital media coverage promotes the fulfillment of both responsive and strategic environmental responsibilities. In contrast, negative digital media coverage only stimulates the fulfillment of responsive environmental responsibility, which reflected an asymmetrical effect of media tone. Further, the hierarchy of governance amplifies the role of environmental regulation in triggering the fulfillment of responsive environmental responsibility but weakens its value to strategic environmental responsibility. Inconsistent with our predictions, the relationship between digital media coverage and corporate environmental responsibility fulfillment could not be significantly moderated by Confucian culture. In addition, environmental regulation and digital media coverage only existed in companies with separate chairperson and manager positions, which indicated that an excellent internal governance environment is a prerequisite for external monitoring mechanisms to play a role in environmental governance. This study enriches the literature on how to drive responsive and strategic environmental responsibility by uncovering an external governance effect of environmental regulation and digital media coverage on the fulfillment of corporate environmental responsibility, and provides inspiration for multiple environmental governance actors to promote the construction of ecological civilization collaboratively.

Analysis of Zijin Mining's Green Transformation and Effectiveness under ESG Concepts

Based on the ESG concept, this paper discusses the practice and effect of non-ferrous metal industrial enterprises in green transformation. Taking Zijin Mining as a case study, it analyses the motivation of Zijin Mining's green transformation and combs through its green governance path, assesses the effectiveness of the transformation from the three levels of governance, environment and society, and evaluates the effect of governing Zijin Mining's green transformation. The study finds that Zijin Mining's green transformation has significantly improved economic performance, energy saving and emission reduction, and actively promoted social performance, reflecting the corporate environmental and social responsibility. The conclusions of this paper not only provide feedback for Zijin Mining's green governance, but also provide practical references for the green transformation of enterprises in the same industry, helping enterprises to achieve the goal of sustainable development.

Dual driving forces for corporate environmental responsibility performance: The synergistic effects of government environmental regulation and market multi-agent green supervision

The 26th United Nations Climate Change Conference reached a series of agreements on implementing the Paris Agreement, empowering governments to independently establish emission reduction goals and encouraging market participants to invest in sustainable development. It highlighted that enhancing corporate environmental responsibility performance (CERP), driven by the collaborative efforts of government and market forces, is key to achieving global sustainability. In this context, this study is the first attempt to investigate the synergistic effects of government environmental regulation (GER) and market multi-agent green supervision (MGS) on CERP. The findings are as follows. First, GER, encompassing the multidimensional environmental responsibilities of governments, has not effectively spurred CERP. MGS, incorporating the green concerns of diverse investors and intermediaries, serves as a significant catalyst for enhancing CERP. The synergy between GER and MGS, involving multi-stakeholder collaborative governance, plays a significant motivating role in promoting CERP. Second, financing constraints and executives' attention to corporate environmental responsibility (CER) are two key channels through which the synergy between GER and MGS influences CERP. Third, firms located in regions with better economic development, those operating in non-heavily polluting industries, or non-state-owned firms exhibit heightened proactivity in improving CERP under the synergy between GER and MGS. This paper expands research on multi-agent collaborative environmental governance from the regional macro-perspective to the micro-firm level, providing a fresh perspective and theoretical basis. The novel findings offer valuable insights for policymakers and firms, especially in economies similar to China, in containing growing environmental challenges and advancing global sustainability.