The world is going through unprecedented environmental crisis. The type of destruction and dissolution of natural resources and elements by individuals and institutions that has been witnessed in the last century is much more than that witnessed in the previous millennia. To tackle this, for more than three decades, a number of discussions have taken place at diverse international fora, and frameworks and propositions have been put forth for corporate implementation. Consequently, a perceptible change has come about in the (...) understanding of corporations and their approach towards the Natural Environment, as a vital organizational stakeholder. While many companies use the pro-tection and preservation of the Natural Environment as a tool for brand building and corporate communications, many others have integrated economic and environmental goals to create mutually beneficial win-win situations. This article attempts to study such Natural Environmental Responsibility (NER) practices in corporate India. Through a mixed-method inductive study the article also proposes ‘Natural Environmental Responsibility Framework’. This is based on the triangulation of data wherein the quantitative data has been gathered through responses to an Executive Perception Survey with 400 responses from 125 organizations; and qualitative data has been gathered through personal interactions with 40 senior management executives from six eminent corporations across industry categories in India. The framework and its major components are based on empirical data of practices as existent in corporate India in contemporary times. Hence, the framework could be considered as a working model of NER in India. (shrink)

Using a sample of Chinese listed firms in polluting industries for the period of 2008–2010, we empirically investigate whether and how Buddhism, China’s most influential religion, affects corporate environmental responsibility (CER). In this study, we measure Buddhist variables as the number of Buddhist monasteries within a certain radius around Chinese listed firms’ registered addresses. In addition, we hand-collect corporate environmental disclosure scores based on the Global Reporting Initiative (GRI) sustainability reporting guidelines. Using hand-collected Buddhism data and corporate (...) environmental disclosure scores, we provide strong and robust evidence that Buddhism is significantly positively associated with CER. This finding is consistent with the following view: Buddhism can serve as social norms to evoke the consciousness of social responsibility, and thereof strengthen CER. Our findings also reveal that the positive association between Buddhism and CER is attenuated for firms with higher law enforcement index. The results are robust to various measures of Buddhism and a variety of sensitivity tests. (shrink)

This paper uses an innovative way to screen stocks and analyzes the relationship between corporate environmental responsibility and long-run stock returns. By our definition, an environmentally responsible (green) company gives no environmental concern and shows environmental strength(s). Using 20 years’ data of 1992–2011, we find evidence that environmentally responsible company outperforms, in the 4th to 7th year after the screening year. An equal-weighted environmentally responsible portfolio earned an annual four-factor alpha of 4.06 % in the 4th (...) year, 3.00 % above industry benchmarks, and 3.87 % above characteristic benchmarks. The results are robust to alternative portfolio weighting methodologies, controlling for firm characteristics, and the removal of outliers. Testing using industry-adjusted Tobin’s Q, we find consistent evidence that environmental strength creates firm value. We argue that environmental responsibility is an intangible asset, likely to be undervalued by the market, especially in the long horizon, thereby causing environmentally responsible companies to exhibit long-horizon excess returns. (shrink)

We examine how corporate environmental responsibility affects the cost of equity capital for manufacturing firms in 30 countries. Using several approaches to estimate firms’ ex ante equity financing costs, we find in regressions that control for firm-level characteristics as well as industry, year, and country effects that the cost of equity capital is lower when firms have higher CER. This finding is robust to addressing endogeneity through instrumental variables, to using alternative specifications and proxies for the cost of (...) equity capital, and to accounting for noise in analyst forecasts. We conclude that investment in CER reduces firms’ equity financing costs worldwide. (shrink)

In this study, we examine the relation between corporate environmental responsibility and risk in U.S. public firms. We develop and test the risk-reduction, resource-constraint, and cross-industry variation hypotheses. Using an extensive U.S. sample during the 1991–2012 period, we find that for U.S. industries as a whole, CER engagement inversely affects firm risk after controlling for various firm characteristics. The result remains robust when we use firm fixed effect or an alternative measure of CER using principal component analysis or (...) downside risk measures. To address the concern of endogeneity bias, we use a system equations approach and dynamic system generalized methods of moment regressions, and continue to find that environmentally responsible firms experience lower risk. These findings support the risk-reduction hypothesis, but not the resource-constraint hypothesis, along with the notion that the top management in U.S. firms is generally risk averse and that their CER engagement facilitates their risk management efforts. Our cross-industry analysis further reveals that the inverse CER-risk association mainly comes from the manufacturing sector, whereas in the service sector, CER tends to increase firm risk. (shrink)

In this study, we examine the determinants of corporate environmental responsibility, as well as the relationship between legal systems and CER as measured by a unique set of global environmental cost data. Results of our analyses show that firms’ legal origins affect CER, which requires a long-term management perspective. Specifically, our results indicate that civil law firms exhibit significantly higher levels of CER than common law firms. In addition, results of an auxiliary test suggest that manager shareholding (...) has a significant, nonlinear relationship with CER. The association between a firm’s legal origin and its CER performance remains robust after controlling for the effects of managerial ownership and issues related to endogeneity. Our findings imply that although the majority of corporate law studies in the past few decades provide support for the common law system emphasizing the maximization of shareholder value and investor protection, the civil law system stressing the maximization of stakeholder wealth and the importance of CER may become more influential in the coming decades as CER becomes central to firms’ operations. (shrink)

The promotion of tourists’ environmentally responsible behavior plays a central role in destination management for sustainability. Based on the stimulus–organism–response framework, this study proposes an integrated model for behavior management by examining the relationship between stimuli and response factors through the organism. Survey data from 458 tourists visiting Mount Heng in Hunan Province, Southern China, were used to empirically evaluate the proposed framework. The findings demonstrate that the perception of a destination’s natural environment positively impacts tourists’ sense of awe and (...) satisfaction; the perception of availability of infrastructure positively and significantly influences awe, satisfaction, and TERB; and awe positively impacts satisfaction and TERB. Moreover, the emotion of awe plays a significant mediating role in this proposed model. The theoretical significance of this study and the implications for tourism destinations are discussed. (shrink)

In this study, we examine whether corporate environmental responsibility plays a role in enhancing operating performance in the financial services sector. Because achieving success with CER investing is often a long-term process, we maintain that by effectively investing in CER, executives can decrease their firms’ environmental costs, thereby enhancing operating performance. By employing a unique environmental dataset covering 29 countries, we find that the reducing of environmental costs takes at least 1 or 2 years before (...) enhancing return on assets. We also find that reducing environmental costs has a more immediate and substantial effect on the performance of financial services firms in well-developed financial markets than in less-developed financial markets. These results are economically and statistically significant and robust even after alleviating endogeneity and using an additional performance measure. We interpret our empirical results as supporting the social impact and reputation-building hypothesis. Our findings also suggest that policy makers dealing with corporate sustainability management should pursue an environment-centered industry policy not only at the manufacturing sector but also at the financial services sector, as firms in both sectors with lower environmental costs perform better. (shrink)

This paper offers directions for the continuing dialogue between business ethicists and environmental philosophers. I argue that a theory of corporate social responsibility must be consistent with, if not derived from, a model of sustainable economics rather than the prevailing neoclassical model of market economics. I use environmental examples to critique both classical and neoclassical models of corporate social responsibility and sketch the alternative model of sustainable development. After describing some implications of this model at the (...) level of individual firms and industries, I offer an ethical justification of the sustainability alternative that is derived from the same values that underlie traditional market economics. (shrink)

This study explored the relationship between egoistic, altruistic and biospheric values and pro-environmental attitudes, as well as their impact on the pro-environmental behaviours of Indian consumers. India is currently facing the burgeoning challenge of a rapidly increasing urban population, which is leading to waste segregation issues in households and the need for sustainable green products due to rising awareness among consumers. The goal of this research was to understand the effect of Indian consumers’ values and pro-environmental attitudes (...) on the following three specific behaviours: waste-sorting intention, green-consumption intention and social-activity intention. The authors found that values were positively related to pro-environmental attitudes, which in turn positively impacted the three pro-environmental behaviours. These findings suggest that, in order to strengthen individuals’ perceptions of the individual benefits of a cleaner and better environment, marketers should promote responsible consumption in tandem with government policymakers. (shrink)

In this article, we examine how firms design executive compensation in light of their risk environment. Prior literature shows that corporate environmental responsibility (CER) of a firm inversely affects firm risk. We argue that firms with better CER performance benefit from the reduced firm risk, and therefore are more likely to provide greater managerial risk‐taking incentives to encourage the risk‐averse managers to undertake risk‐increasing but positive net present value (NPV) investments. Consistent with our hypotheses, we find that a (...) firm’s CER rating is positively associated with its CEO risk‐taking incentives (vega) in the following year. We also document cross‐sectional variations in the CER‐vega relationship, that is, a weaker association in the controversial industries. This study contributes to the literature by investigating the role of CER on executive compensation design from the perspective of risk management. (shrink)

Proponents of corporate environmental responsibility argue that corporations shortchange shareholders by investing too little in environmental responsibility. They claim that corporations can improve their financial performance by increasing their investment in environmental responsibility. Opponents of corporate social responsibility argue that corporations shortchange shareholders by investing too much in environmental responsibility. They claim that corporations can improve their financial performance by reducing their investment in environmental responsibility. Yet, others claim that (...) corporations serve their shareholders well by investing just enough in social responsibility, not too little and not too much. If so, corporations increase their investment in environmental responsibility when an increase improves financial performance and reduce their investment in environmental responsibility when a decrease improves financial performance. Our evidence is consistent with this last claim. We find that the behavior of corporations is consistent with the claim that they act in the interest of shareholders, increasing or decreasing their investment in environmental responsibility as necessary to improve their financial performance. (shrink)

This paper examines the antecedents of organizational commitment for adopting corporate environmental responsibility and green practices in the case of the logistics industry in South Korea. Seven hundred and eighty employees and top management from logistics companies were sampled. The data were analyzed using factor analysis, structural equation modeling techniques, and one-way analysis of variance. The results showed that social expectations, organizational support, and stakeholder pressure were the important antecedents for the adoption of corporate environmental responsibility (...) and green practices. In the path analysis, social expectations had the greatest impact on both stakeholder pressure and green practice adoption. Moreover, we found that the higher the job titles were, the more willing they were to adopt green practices. This indicated that the current top management of Korean logistics companies is well aware of being mandated to make a commitment to corporate environmental responsibility and green practices. (shrink)

The question of how an individual firm's social and environmental performance impacts its firm risk has not been examined in any empirical UK research. Does a company that strives to attain good environmental performance decrease its market risk or is environmental performance just a disadvantageous cost that increases such risk levels for these firms? Answers to this question have important implications for the management of companies and the investment decisions of individuals and institutions. The purpose of this (...) paper is to examine the relationship between corporate environmental performance and firm risk in the British context. Using the largest dataset assembled so far, with community and environmental responsibility (CER) rankings for all rated UK companies between 1994 and 2006, we show that a company's environmental performance is inversely related to its systematic financial risk. However, an increase of 1.0 in the CER score is associated with only a 0.028 reduction in its β. (shrink)

Although the same environmental regulations apply to all regions in China, legal enforcement can be different due to local economic development priorities. There is still a lack of knowledge about how regional disparities affect the operating performance results of the implementation of corporate environmental management practices, thus providing little information for foreign companies when they invest and develop their production base in China. To fill this research gap, this paper collects data from the Fortune 500 Chinese firms to (...) investigate the moderating role of regional disparities in affecting the performance results of corporate environmental management efforts based on the institutional theory. The disclosed corporate environmental responsibility practices serve as proxy to represent corporate environmental management practices. Content analysis approach was applied to collect and analyze CER practices published in the corporate reports of Chinese manufacturers. The results show that CER has a positive impact on operating income, while regional disparities influence the relationship between CER and corporate operating income. Specifically, CER and operating income are positively related in Eastern China; on the contrary, they are negatively related in Western China. This paper adds to the body of knowledge about environmental discrepancies in the same emerging economy, and provides insights for systematic consideration in terms of the issues of government environmental regulations and corporate environmental strategies. (shrink)

Despite the growing interest in examining the role of religious beliefs as a guide towards environmental conscious actions, there is still a lack of research informed by an analysis of divine messages. This deficiency includes the extent to which ethics for environmental responsibility are promoted within textual divine messages; types of environmental themes promoted within the text of divine messages; and implications of such religious environmental ethics for business practice. The present study attempts to fill (...) this gap by conducting a thorough content analysis of environmental themes within the divine message of Muslims focusing on their related ethical aspects and business implications. The analysis has revealed 675 verses in 84 chapters throughout all 30 parts of the Qur’an, with environmental content relating to the core components of the natural world, i.e. human beings, water, air, land, plants, animals, and other natural resources. This environmental content and its related ethics are grounded on the belief that humans are vicegerents of God on the earth and their behaviours and actions are motivated by earthly and heavenly rewards. Implications of these findings for different sectors/businesses are also highlighted. (shrink)

It is widely claimed that climate change has increased the magnitude and the frequency of natural phenomena such as storms, droughts, and floods with the concomitant costs in terms of damages and victims. This paper using weekly data from global stock market indices in a Fama–French model, examines how and to what extent market agents and investors react to such events. As a yardstick for comparison purposes, the possible market impact of industrial accidents is also incorporated and examined in the (...) empirical investigation. The study uses in a comparative approach the STOXX Global ESG Environmental Leaders index and the STOXX Global index diversified across 1800 top companies. Results reported herein seem to indicate that natural and anthropogenic adversity have no immediate impact on the stock indices, while wildfires have an immediate reduction impact on market risk in the case of the ESG Environmental Leaders index. Moreover, wildfires and industrial accidents appear to cause a significant reduction of systematic risk over the next week following the incident. However, the magnitude of the effect is higher in the case of the ESG Environmental Leaders stock index. Finally, the effect on systematic risk by industrial accidents is temporarily without any lasting imprint. (shrink)

This study assesses the impact had by institutional isomorphic pressures in the organisational fields of 185 businesses operating within the United Kingdom. The emphasis throughout is on how external institutions affect the socially and environmentally responsible aspects of an organization’s purchasing practice. Factor analyses and a linear regression model are employed to test the influence of these pressures. Initial findings suggest that what other industry participants are doing in this area is not as important in affecting the procurement practice of (...) the focal organisation as is the managers’ perception of how legitimacy is awarded by stakeholders and, indeed, if competitors with well-developed social and environmental supply chain management programs are perceived favourably in the industry. (shrink)

The aim of this paper is to shed some light on understanding why companies adopt environmentally responsible behavior and what impact this adoption has on their performance. This is an empirical study that focuses on the United Nations (UN) Global Compact (GC) initiative as a Corporate Social Responsibility (CSR) mechanism. A survey was conducted among GC participants, of which 29 responded. The survey relies on the anticipated and actual benefits noted by the participants in the GC. The results, while (...) not conclusive, indicate that companies have more than one reason for adopting environmentally responsible behavior and that ethical and economic reasons co-exist. In terms of performance, the impact of participation in the GC seems to be particularly high in securing network opportunities and improved corporate image. The results indicate that companies that have participated many years in the GC, have submitted the most projects and have attended the most GC meetings also regard their CSR involvement as having had a strong, positive influence on their market performance. GC participation does not result in significant cost advantages, but this does not seem to have been regarded as a goal anyway. Costs seem to be affected to a␣large extent by existence of in-house research and␣development and the capability of developing environmentally sound technologies. Overall, the company receives both ethical and economic benefits from joining the GC. (shrink)

The growing collective consensus among the public is to possess environmental attitudes, as the majority consider themselves to be “environmentalists.” However, does the public’s environmental attitudes or concern translate into environmentally responsible behaviors? This study sought to verify among undergraduate students the level of environmentalism—the relation of environmental attitudes and responsible behaviors. College students were targeted because they will be the future custodians, planners, policy makers, and educators of the environment and its issues. Environmental attitudes were (...) analyzed using the revised New Ecological Paradigm (NEP) scale, and behaviors were measured with the Environmentally Responsible Behavior Index. Overall, college students in this sample were sympathetic toward the environment, and they supported the NEP ideology. However, except for recycling, students were not very participative in various environmentally responsible behaviors. Additionally, consistent with previous studies, the attitude-behavior relations were weak or modest at best. (shrink)

As social entrepreneurial intention has received increasing attention from scholars and practitioners, no clear conclusions have been drawn regarding antecedent or external factors that influence social entrepreneurial intention. This study aims to develop a structural model to shape the social entrepreneurial intention of business administration students, which involves the theory of planned behavior, social capital, individual environmental responsibility, and individual absorptive capacity. Furthermore, this study regards potential absorptive capability as a multi-dimensional construct of a higher-order structure. The participants (...) were students from business administration colleges/universities in Taiwan. The empirical data from 969 participants were analyzed using Smart PLS 3.0 to obtain the results. The results revealed that: social capital had a significant positive effect on attitudes and subjective norms; attitudes, subjective norms, individual environmental responsibility, and realized absorptive capability had a positive effect on social entrepreneurial intention; however, social capital and potential absorptive capability had a negative effect. The results were discussed, and some specific recommendations for practitioners of business administration education were proposed. (shrink)

This paper examines how competition and competitive strategy influence companies’ propensity to engage in socially and environmentally responsible procurement processes (SERP). We interview 141 British procurement managers, on their perception of their company’s competitive strategy and the competitive environment in which they operating in. In addition, participants were asked how important responsible procurement was for their overall business and their strategy.Our results suggest that companies that produce a differentiated product engage in relatively proactive SERP process, compared to their counterparties, who (...) aimed to produce a product at the lowest price possible. (shrink)

Resenha do livro The Ethics of Environmentally Responsible Health Care.

This book shows how environmental decline relates to human health and to health care practices in the U.S. and other industrialized countries. It outlines the environmental trends that will strongly affect health, and challenges us to see the connections between ways of practicing medicine and the very environmental problems that damage ecosystems and make people sick. In addition to philosophical analysis of the converging values of bioethics and envrionmental ethics, the book offers case studies as well as (...) a number of practical suggestions for moving health care toward sustainability. (shrink)

This paper argues that multinational corporations face levels of environmental and social responsibility higher than their national counterparts. Drawing on the literatures of stakeholder salience, corporate reputation management, and evidence from the confrontation between Shell and Greenpeace over the Brent Spar, in 1995, two mechanisms – international reputation side effects, and foreign stakeholder salience – are identified and their contribution in creating an environment more restrictive, in terms of environmental and social responsibility, is elaborated on. The (...) paper concludes with discussing the links of the work presented here with a number of ongoing debates within the filed of international business ethics, and the managerial implications of the two mechanisms identified. (shrink)

The financial services sector has the potential to be an important driver for improved corporate social and environmental responsibility through its control over corporate financing. But, so far, only ad hoc policy initiatives have arisen in the European Union and other countries. Because the financial services sector is where wholesale decisions regarding future development, and thus pressures on the environment, arise, the reform of investment and banking services to promote long term investment and better consideration of environmental (...) impacts may be an effective way to promote sustainable development. Reforms such as corporate environmental reporting requirements and lender liability for borrowers’ environmental harm, are some of the ways by which an institutional framework for mobilising financial organizations as instruments of environmental regulation could be constructed. (shrink)

China is currently experiencing rapid economic growth. The price of this, however, is environment pollution. Many Chinese corporations are lacking in corporate environmental responsibility (CER). Therefore, this study employs data from Chinese and multinational corporations to identify why Chinese corporations seldom engage in CER by investigating their motivations and stakeholders. The results show that the most important reason why Chinese corporations do not engage in CER is the fact that their competitive strategy of cost cutting makes them limited (...) in resources, such as money, employees, information, or added value. Further study implies that Chinese corporations face more survival pressure, though they are willing to take environmental responsibilities as multinational corporations do. The results also imply that government and social surroundings can play an important role to arouse CER consciousness of Chinese corporations in all stakeholders. Consequently, Chinese government has a heavy duty to promote corporations to respond to their CER in the long run. (shrink)

We aim to investigate the effect of corporate environmental responsibility (CER) engagement on investors' reactions. We also explore heterogeneity of this impact among different types of companies and different company's market performance. We use panel data models and quantile regression based on data related to firms listed on the A-share China security market and the final sample consists of 3,776 firm-year observations. The results show that CER engagement has a significant positive impact on investors' investment decisions. Further, investors (...) are more sensitive to CER engagement of high energy-consumption companies and no matter the company is a state-owned or a non-state-owned, CER engagement has a significant positive impact on investors' reactions. CER engagement has a significant positive impact on investors' reactions in all quantiles except one and the promoting effect increases first and then decreases with the growth of corporate market value from lower to upper quantiles. (shrink)

This chapter contains sections titled: Responsibility for environmental harm to humans Responsibilities to the natural world Business ethics in the age of sustainable economics.

Environmental policies to promote environmentally sustainable economic activity have often concentrated on larger firms. However, increasing attention is being paid to the role of small- and medium-sized enterprises (SMEs) and entrepreneurial actors. In this paper, we examine how policy tools are being used to improve the environmental performance of SMEs and to redirect entrepreneurial energies in more environmentally benign directions. The empirical section adopts a case-based comparative method to examine four instances of policymaking, drawn from different countries and (...) industry sectors. The paper argues that while some interventions have proved effective in their own terms, better integrated approaches are required to address today's complex and deep-rooted sustainability challenges. The paper identifies several policy implications including the need to: clarify the purpose of any intervention, address potential interactions and trade-offs; select appropriate tools based on informed reviews of the options; remain sensitive to context-specific factors; and devise effective vehicles for the promotion and governance of entrepreneurial initiatives. (shrink)

This study explores both the negotiating styles and moral reasoning processes of business people and governmental officials in Taiwan, so as to provide a footing for outsiders when negotiating with Taiwanese over environmental concerns. Findings imply that Taiwanese business people and governmental officials can and will reason both at the conventional level and at the postconventional level of moral judgment. But, results of this study also indicate that Taiwanese negotiating styles do not necessarily match their levels of moral reasoning. (...) With respect to pollution concerns, Taiwanese seem unwillingly to accept responsibility as autonomous individuals. Instead, responsibility is accepted when mandated by the law. (shrink)

Following an established two-dimensional dichotomy for environmental leadership, environmentally friendly behavior as a leadership style has become an important topic in both research and practice. However, so far, it has remained unclear how these new concepts relate to well-established leadership styles such as transformational leadership, responsible leadership, and leaders' organizational citizenship behavior. In this study, we provide an in-depth examination of the environmentally focused substyles in contrast to their well-established counterparts, their antecedents, and the incremental value in predicting corporate (...) environmental responsiveness (CER). For that purpose, we surveyed N = 211 German leaders: Confirmatory factor analysis (CFA) and path model analyses suggest that, overall, established leadership styles and their respective environmentally specific substyle are empirically distinct constructs. Moreover, environmentally specific leadership behaviors explained significant variance beyond established concepts in predicting corporate environmental sustainability. Finally, our analyses suggest that leaders' extraversion and political orientation emerge as valid predictors (i.e., antecedents) of environmental leadership behavior. Overall, this study shows that CER is influenced on an individual level, underlining the important role of leaders' behavior in a rapidly worsening climate crisis. (shrink)

We have empirically examined the relationship between top executives’ turnover and the corporate environmental responsibility by identifying the influence of ten specific turnover reasons resulting in the chairman’s departure and two important types of chairman’s succession. Using a sample of 782 manufacturing listed companies across 3 years in China, we find that the corporate environmental responsibility is negatively associated with the involuntary and negative turnover (i.e., dismissal, health and death, and forced resignation) and positively associated with (...) improving corporate governance, and not associated with the normal turnover (i.e., retirement and contract expiration) and the types of chairman’s succession (i.e., independence, and internal or external promotion). Our study significantly contributes to research in environmental disclosure by revealing the relationship between chairman’s turnover and the corporate environmental responsibility. A feasible way is suggested to regulators and other stakeholders in monitoring or assessing the possible abnormality of environmental responsibility when firms experience involuntary and negative chairman’s turnover in the emerging economies. (shrink)

Since the times of yore, the Indian culture has always laid importance on service to society as an important responsibility of the business/trader community. The society and local community is the resource pool from which any organization gets its manpower and also so to say ‘the license to operate’. The society is the entity to which an organization owes its existence. Any organization must pay its due in various ways to this important constituency. Though a number of models and (...) frameworks have been identified by experts for Corporate Social Responsibility, the author has found a dearth of real-life cases of leading organizations (especially in the Indian context) and their endeavours towards societal welfare and environmental protection. The author has used the case of Hindustan Unilever Ltd (HUL), a leading company in the FMCG (Fast Moving Consumer Goods) sector in India for the past seven decades, to highlight their best practices towards the society, local community, NGOs and the natural environment. In spite of being a multinational organization, the Company has lived up to the Indian values of service to society. The case follows a descriptive research design and the findings include diverse, innovative and landmark initiatives undertaken by the Company to contribute to societal welfare through rural and women’s empowerment, livelihood generation, rehabilitation and natural environment protection and preservation. The data collection for this case has been done by the author through personal interviews with top executives of the Company and supplemented through other information available in the public domain. (shrink)

The existing literature has explored the impact of high-speed rail (HSR) opening on macrolevel environmental performance. However, few studies have validated its effects on microlevel corporate environmental responsibility performance. Therefore, on the basis of data from Chinese A-share listed companies from 2011 to 2020, we examine the relationship between HSR opening and corporate environmental responsibility performance, along with the underlying reasons for this relationship. Our research reveals that HSR opening can significantly improve the corporate (...) class='Hi'>environmental responsibility performance. Talent aggregation and supervisory pressure constitute the two main channels that explain the positive relationship. Furthermore, the results of heterogeneity tests indicate that this positive effect is more significant in cities with larger populations and administrative centers, as well as in nonpolluting industries and companies certified through ISO14001 environmental management systems. This paper confirms that HSR opening contributes to generating positive externalities for firms and provides valuable insights into improving and understanding corporate environmental responsibility performance. (shrink)

In recent years, the Audit Pilot of Natural Resources Assets (APNRA) pilot program has been implemented by the Chinese government to strengthen the protection of natural resources and the ecological environment. Based on the APNRA pilot program, we use the multi-period differences–in–differences model to investigate the response of corporate environmental responsibility to external governance pressure. We find that firms significantly improve their environmental investment and performance after the implementation of the APNRA pilot program. Sewage charges (including green (...) fees) and ecological protection incentives constitute the two main channels that explain the positive relationship. We further find that the impact of the program on corporate environmental investment and performance is more pronounced for firms in regions with poor environmental quality, and for firms in heavy-polluting industries. This paper introduces the role of government governance in generating positive externality for firms and provides a valuable understanding of environmental governance in an emerging market. (shrink)

As environmental issues have become increasingly prominent around the world, corporate environmental responsibility has begun to attract more attention. As the decision-makers of firms, top executives play an important role in the environmentally ethical behavior of their corporations. Few studies, however, have explored the motivations behind corporations’ environmentally responsible behavior from the perspective of how CEOs’ early experiences shape their decisions. This paper explores the impact that CEOs who experienced the Send-down movement have on their companies’ environmentally (...) responsible behavior and the boundary conditions of this impact from the perspective of the imprinting theory. Based on the data of listed Chinese companies from 2009 to 2020, we have found that CEOs who were themselves “Sent-down youth” have a positive impact on corporate environmental responsibility. For firms with a higher proportion of state ownership and CEOs with Chinese Communist Party membership, the relationship between experience with the Send-down movement and corporate environmental responsibility is strengthened, whereas a higher level of market competition weakens the relationship. This article enriches and deepens the research on the imprinting theory, and it also has certain practical implications for firms that hire top executives with unique types of early experiences to promote business ethics improvement. (shrink)

This study examines the relationship between corporate diversification strategy and the pollution activity of subsidiaries within the U.S. chemical industry using TRI data (EPA's Toxic Release Inventory). The subsidiaries of conglomerates were found to exhibit higher pollution levels for direct emissions than those of firms pursuing more related diversification strategies. Additionally, the subsidiaries of conglomerates exhibited more variance in overall pollution emissions compared to related diversified firms.

Six planetary boundaries have already been exceeded, including climate change, loss of biodiversity, chemical pollution, and land-system change. The health research sector contributes to the environmental crisis we are facing, though to a lesser extent than healthcare or agriculture sectors. It could take steps to reduce its environmental impact but generally has not done so, even as the planetary emergency worsens. So far, the normative case for why the health research sector should rectify that failure has not been (...) made. This paper argues strong philosophical grounds, derived from theories of health and social justice, exist to support the claim that the sector has a duty to avoid or minimise causing or contributing to ecological harms that threaten human health or worsen health inequity. The paper next develops ideas about the duty’s content, explaining why it should entail more than reducing carbon emissions, and considers what limits might be placed on the duty. (shrink)

This paper examines whether corporate environmental responsibility is influenced by regional differences in climate change denial. While there is an overwhelming consensus among scientists that climate change is happening, recent surveys still indicate widespread climate change denial across societies. Given that corporate activity causing climate change is fundamentally rooted in individual beliefs and societal institutions, we examine whether local perceptions about climate change matter for firms’ engagement in environmental responsibility. We use climate change perception surveys conducted (...) in the U.S. to compute a novel measure of climate change denial for each U.S. county. We find that firms located in counties with higher levels of climate change denial have weaker environmental performance ratings, are more likely to commit environmental violations, and impose greater environmental costs on society. Regional differences in religiosity, social capital, political leaning, or county-level demographic characteristics cannot explain these results. Furthermore, we document that strong corporate governance mechanisms and corporate culture moderate the negative relationship between climate change denial and corporate environmental responsibility. Overall, our findings offer new insights into how local beliefs and perceptions about climate change may influence firm-level sustainability practices. (shrink)

In recent years, corporate environmental policies have become urgently needed, demanded by influential environmentalist groups and launched by an increasing number of companies. Those demands and efforts, however, often lack an ethical underpinning. This paper deals with some basic ethical issues and outlines three perspectives for further investigation: (1) How can we take into account ethical pluralism that characterizes most contemporary societies?; (2) What is the content of environmental ethics viewed from a Christian perspective, taken as an example (...) of various existent doctrines in the pluralistic world?; and (3) What relevance may this "Christian environmental stewardship" have for the understanding of corporate environmental responsibility? (shrink)

To what extent is any individual morally obligated to live environmentally sustainably? In answering this, I reject views I see as constituting two extremes. On one, it depends entirely on whether there exists a collective agreement; and if no such agreement exists, no one is obligated to reduce her/his consumption or pollution unilaterally. On the other, the lack of a collective agreement is morally irrelevant, and regardless of what others are doing, each person is obligated to limit her/his pollution and (...) consumption to a level that would be sustainable if everyone were to act in this way. I argue that the truth is somewhere between these, but that a very precise specification of the extent of one's responsibility is impossible. Roughly, what can be said is that each individual ought constantly to strive to do more than she/he does currently and to push her/himself into new, uncomfortable territory, though no one is obligated to martyr her/himself for an environmental cause. (shrink)

Recent research indicates that environmentally responsible stakeholders’ green needs and practices effectively enhance substantive or symbolic corporate environmental responsibility. However, few studies have noted the potential for these green needs and practices to backfire. We integrate moral licensing theory and upper echelons theory to develop a theoretical framework. This framework can predict the differential effects of stakeholders’ green needs on corporate green innovation, contingent on the moral credits that these needs confer upon executives. The evidence comes from the (...) practice of green bond issuance by listed firms and a quasi-natural experiment of China’s environmental tax policy. We find that a 1% increase in the regional environmental protection tax is associated with a 0.036% decrease in a firm’s green innovation. Conversely, a 1% increase in green bond issuance corresponds to a 0.020% increase in a firm’s green innovation. Moreover, these effects are enhanced when managerial discretion is high and mitigated in firms with prosocial executives. Our findings suggest that executives engage in moral mental accounting/balancing, and thus treat stakeholders’ green needs differently. (shrink)