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Culture and Corporate Decarbonization Efforts: A Time-Varying Analysis and Topology Approach

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  • Lingju Chen

    (College of Mathematics and Data Science (Software College), Minjiang University, Fuzhou 350108, China
    School of Business, Western Sydney University, Parramatta, NSW 2150, Australia)

  • Jiancheng Jiang

    (Department of Mathematics and Statistics, University of North Carolina at Charlotte, Charlotte, NC 28223, USA)

  • Sha Yu

    (Department of Mathematics and Statistics, University of North Carolina at Charlotte, Charlotte, NC 28223, USA)

Abstract

This study examines the influence of culture on corporate responses to climate change. Given the inherent uncertainty associated with climate change, cultural values, as a non-market force, are expected to impact corporate’s decision making regarding decarbonization.To investigate this, a sample of large firms from 23 societies participating in the Carbon Disclosure Project (CDP) survey was analyzed, along with cultural measures assessed by the Global Leadership and Organizational Behavior Effectiveness (GLOBE) study. The findings of this study reveal that cultural values have diverse effects on corporate decarbonization efforts. Specifically, a preference for avoiding uncertainty and a future-oriented perspective tend to foster decarbonization, while a strong focus on performance appears to hinder such efforts. Additionally, the relationship between culture and decarbonization demonstrates a time-varying characteristic, indicating the influence of culture on carbon performance is contingent upon the evolution of carbon-related institutions over the study period.

Suggested Citation

  • Lingju Chen & Jiancheng Jiang & Sha Yu, 2023. "Culture and Corporate Decarbonization Efforts: A Time-Varying Analysis and Topology Approach," JRFM, MDPI, vol. 16(8), pages 1-22, July.
    • Handle: RePEc:gam:jjrfmx:v:16:y:2023:i:8:p:354-:d:1203377
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    References listed on IDEAS

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