Between Tradition and Pretense? Deciphering the Confucian Clan in Corporate Greenwashing Practices
66 Pages Posted: 22 Nov 2024
Date Written: September 09, 2024
Abstract
Corporate greenwashing, where firms mislead stakeholders about their environmental practices, is a significant issue in China, where rapid industrialization and environmental degradation have heightened the need for genuine corporate responsibility. This study examines how the historical presence of Confucian clans-rooted in traditional values of integrity, responsibility, and communal welfare-affects the propensity of firms to engage in greenwashing. Using a dataset of 1,346 Chinese firms from 2011 to 2021, we employ cross-sectional regression analysis with genealogy density as a proxy for the strength of Confucian clan heritage. Greenwashing is measured through discrepancies between symbolic and actual ESG performance data. The analysis is robust, incorporating firm-specific, industry-specific, and regional controls. Our findings reveal a significant inverse relationship between Confucian clan presence and corporate greenwashing, suggesting that traditional values serve as a deterrent to deceptive practices. This study underscores the significance of cultural heritage in promoting ethical corporate behavior, offering new perspectives on the role of traditional values in modern business practices.
Keywords: Confucian Clans, Corporate Greenwashing, Cultural Heritage, Environmental Ethics
JEL Classification: G34
Suggested Citation: Suggested Citation