How do Media Coverage and CEOs' Ascribed Ties help Regulate Corporate Environmental Responsibility in heavily polluting Chinese industries?

Abstract

Numerous studies have highlighted the influence of non-monetary incentives for executives in shaping organizational outcomes. We examined the non-monetary motivation process by introducing the concept of the "fundamental attribution error." We argued and confirmed that ethical CEOs can compound attribution errors by tying the company's reputation to their moral standing, emphasizing personal fulfillment, and steering the firm towards environmental engagement for self-promotion. We confirmed that the positive impact of ethical CEOs on corporate environmental responsibility is amplified for those with established political ties, especially when firms garner extensive media coverage. We tested our hypotheses using 7,038 observations of 673 firms listed among the highly polluting Chinese industries from 2010 to 2022. This study has significant implications for the corporate sector, environmental authorities, media regulatory authorities, and policymakers.