Do climate risk beliefs shape corporate social responsibility?

Qiping Huang and Meimei Lin

Global Finance Journal, 2022, vol. 53, issue C

Abstract: Global climate change is one of the most pressing issues of our time, potentially affecting everyone, both individuals and businesses. This paper examines whether differences in beliefs about climate change affect firms' decision-making in Corporate Social Responsibility (CSR) commitment. Using county-level climate change beliefs data from Yale Climate Opinion Maps, we find that firms' Environmental, Social, and Governance (ESG) scores are higher if they are located in counties where more people believe in global climate change. We then use natural disasters as exogenous shocks to the beliefs about climate risk and continue to find a positive association between CSR and perceptions of climate risks. Furthermore, we discover a stronger correlation between CSR and climate risk beliefs when firms have more local investors.

Keywords: Climate change beliefs; Corporate social responsibility; ESG scores; Natural disasters (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:53:y:2022:i:c:s1044028322000412

DOI: 10.1016/j.gfj.2022.100739

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