How Does Environmental Corporate Social Responsibility Matter in a Dysfunctional Institutional Environment? Evidence from China

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

26 Scopus Citations
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Original languageEnglish
Pages (from-to)209-223
Journal / PublicationJournal of Business Ethics
Volume140
Issue number2
Early online date29 May 2015
Publication statusPublished - Jan 2017

Abstract

Drawing on institutional and signaling theories, this study examines how environmental corporate social responsibility (ECSR) affects firm performance in a dysfunctional institutional environment. We extend the ECSR literature by suggesting that ECSR indirectly influences firm performance through the mediating effects of business and political legitimacy. Based on a dataset of 238 firms in China, we find that ECSR affects business and political legitimacy followed by firm performance. Moreover, legal incompleteness weakens and legal inefficiency strengthens the effects of ECSR on business and political legitimacy.

Research Area(s)

  • Environmental corporate social responsibility, Institutional theory, Legal incompleteness, Legal inefficiency, Legitimacy, Signaling theory

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