Leading by Ideology: The Role of CEO Partisanship in Corporate Environmental Records

Harshil Dalal

No ubf5d, SocArXiv from Center for Open Science

Abstract: Concern over corporate environmental violations is growing. Evidence suggests that corporate misconduct, including violations of environmental regulations, is pervasive. Existing research points to various internal and external factors contributing to such violations. This research seeks to examine a previously unexplored connection: the potential influence of a CEO's political partisanship and ideology on a company's environmental record. The analysis will use upper echelons theory and the ideology-as-values framework to suggest that the political ideologies of CEOs, specifically their position on the liberal-conservative scale, affect their companies' environmental actions. It is hypothesized that a CEO's political partisanship is positively linked to environmental violations by their firm. The study’s findings provide some evidence that relative CEO partisanship does indicate that firms led by more Republican-leaning CEOs are associated with more EPA violations; with firms headed by conservative leaning CEOs having a higher propensity to be investigated for environmental violations by the EPA.

Date: 2024-12-18
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:ubf5d

DOI: 10.31219/osf.io/ubf5d

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