The Effect of Political Connections on Corporate Environmental Social Responsibility: Large Sample Evidence from China

摘要

This study investigates the relationship between firms' political connections and corporate environmental social responsibility (CESR). Results indicate: (1) Private corporations are more likely to engage in CESR if their leaders are members of the "Two Meetings." (2) Private corporations with greater financial resources are more likely to engage in actions related to CESR and financial resources provide firms with access to political connections. (3) Private corporations whose leaders take government position as officials tend to participate in more substantial activities related to CESR instead of adopting decoupling strategy when engaging in CESR activity. The basic motivation for corporations to voluntarily engage in environmental protection is to achieve political legitimacy. The result provides the environmental policymakers a useful way to encourage CESR.