Between Tradition and Pretense? Deciphering the Confucian Clan in Corporate Greenwashing Practices

66 Pages Posted: 22 Nov 2024

See all articles by Dongyang Zhang

Dongyang Zhang

Capital University of Economics and Business

Xingyu Chen

Zhongnan University of Economics and Law

Yizhi Wang

Cardiff University, Cardiff Business School

Samuel A. Vigne

Luiss Guido Carli University - Luiss Business School

Dongmin Kong

School of Economics, Huazhong University of Science and Technology

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

Zhang, Dongyang and Chen, Xingyu and Wang, Yizhi and Vigne, Samuel A. and Kong, Dongmin, Between Tradition and Pretense? Deciphering the Confucian Clan in Corporate Greenwashing Practices (September 09, 2024). Available at SSRN: https://ssrn.com/abstract=4977959 or http://dx.doi.org/10.2139/ssrn.4977959

Dongyang Zhang

Capital University of Economics and Business ( email )

Beijing
China

Xingyu Chen

Zhongnan University of Economics and Law ( email )

Yizhi Wang (Contact Author)

Cardiff University, Cardiff Business School ( email )

Aberconway Building, Colum Dr
Cardiff
Cardiff, NY Walse CF10 3EU
United Kingdom

Samuel A. Vigne

Luiss Guido Carli University - Luiss Business School ( email )

Via Nomentana, 216
Roma, 00162
Italy

Dongmin Kong

School of Economics, Huazhong University of Science and Technology ( email )

Bldg. of Econ. School, Louyu Rd. 1037#
HUST, Hongshan Dist.
Wuhan, Hubei 430074
China

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