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Knowledge-Based Faultlines and Corporate Social Irresponsibility: Evidence from Chinese High-Polluting Companies

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  • Jingchen Ma

    (School of Business Administration, Southwestern University of Finance and Economics, Chengdu 610074, China)

  • Xu Huang

    (School of Business Administration, Southwestern University of Finance and Economics, Chengdu 610074, China)

Abstract

Government requests and societal expectations have pressured high-polluting companies to focus on corporate social responsibility strategies. Using the upper echelons theory as a theoretical framework, we investigated how top management team (TMT) faultlines influence corporate social performance (CSP) based on data from 212 high-polluting companies. The results showed that CSP can be improved by reducing corporate social irresponsibility (CSiR), knowledge-based faultlines have a U-shaped effect on CSiR, and there is a knowledge-based faultline critical point. This implies that knowledge-based faultlines can improve CSiR before reaching this critical point. Additionally, medium-strength knowledge-based faultlines are more conducive to improving irresponsible behavior. CEO power plays a significant moderating role in the relationship between TMT faultlines and CSiR and slows the U-shaped effect of knowledge-based faultlines on CSiR. These findings could help enterprises optimize team structures, adjust corporate social responsibility strategies, and maintain sustainable development in high-polluting sectors.

Suggested Citation

  • Jingchen Ma & Xu Huang, 2023. "Knowledge-Based Faultlines and Corporate Social Irresponsibility: Evidence from Chinese High-Polluting Companies," Sustainability, MDPI, vol. 15(17), pages 1-18, September.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:17:p:13156-:d:1230781
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