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Corporate environmental responsibility (CER) weakness, media coverage, and corporate philanthropy: Evidence from China

Author

Listed:
  • Xingqiang Du

    (Xiamen University)

  • Yingying Chang

    (Xiamen University)

  • Quan Zeng

    (Xiamen University)

  • Yingjie Du

    (Shanghai University)

  • Hongmei Pei

    (Xiamen University)

Abstract

This study investigates the hidden connection between corporate philanthropy and corporate environmental responsibility (CER) weakness. Using a sample of Chinese listed firms in polluting industries and hand-collected data on corporate environmental performance and corporate philanthropy, we show that CER weakness is significantly positively associated with corporate philanthropy, suggesting that corporate philanthropy may be used by environmentally unfriendly firms to mitigate the negative influence of CER weakness and offset pressures from stakeholders. This finding also implies that Chinese enterprises in polluting industries are inclined to engage in greenwashing via the conduit of corporate philanthropy. In addition, media coverage reinforces the positive association between CER weakness and corporate philanthropy. Above results are still valid after controlling for the potential endogeneity between CER weakness and corporate philanthropy.

Suggested Citation

  • Xingqiang Du & Yingying Chang & Quan Zeng & Yingjie Du & Hongmei Pei, 2016. "Corporate environmental responsibility (CER) weakness, media coverage, and corporate philanthropy: Evidence from China," Asia Pacific Journal of Management, Springer, vol. 33(2), pages 551-581, June.
    • Handle: RePEc:kap:asiapa:v:33:y:2016:i:2:d:10.1007_s10490-015-9449-5
    DOI: 10.1007/s10490-015-9449-5
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