Simony as strategy? The role of political contributions in managing ESG engagement

IF 8 2区环境科学与生态学 Q1 ENVIRONMENTAL SCIENCES

Journal of Environmental Management Pub Date : 2025-03-03 DOI:10.1016/j.jenvman.2025.124753

R. Carè , M. Cerciello , R. Fatima , S. Taddeo

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引用次数: 0

Abstract

This study examines the relationship between political contributions and Environmental, Social, and Governance (ESG) measures in US firms. Using data from LSEG Workspace (2010–2023), we implement GMM-SYS estimation to analyze the impact of corporate political donations on ESG metrics. Our results show that political contributions increase the ESG Score (through the E and G pillars) but also cause more ESG controversies for the firm. This suggests that firms may resort to political donations to obtain artificially high ESG Scores, which however do not translate into fewer ESG controversies. This work makes three key contributions. First, it bridges a gap in the literature by empirically examining the interplay between political donations and ESG performance across the three ESG pillars. Second, it highlights the dual role of political contributions: enhancing ESG scores while exacerbating ESG controversies, thus raising concerns about greenwashing practices. Lastly, our findings emphasize the importance of strengthening regulatory oversight to ensure that political activities do not undermine corporate sustainability goals.

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来源期刊

Journal of Environmental Management 环境科学-环境科学

CiteScore

13.70

自引率

5.70%

发文量

2477

审稿时长

84 days

期刊介绍： The Journal of Environmental Management is a journal for the publication of peer reviewed, original research for all aspects of management and the managed use of the environment, both natural and man-made.Critical review articles are also welcome; submission of these is strongly encouraged.