As an essential innovation in China’s environmental governance, the central environmental protection inspector policy (CEPI) plays a crucial role in driving the development of the corporate responsibility system. Using the difference-in-differences model with multiple time periods, samples of A-share listed companies in Shanghai and Shenzhen from 2013 to 2020 are chosen to examine the impact of the CEPI on corporate social responsibility within the context of China’s modern governance system. The results indicate the following: first, the CEPI can significantly promote enterprises to fulfil social responsibility; second, the local government environmental regulation and public participation are the dual guarantees for the effect of the CEPI’s policy, and market-based environmental regulation of the local government is more effective than command-and-control environmental regulation; and third, a high propensity for technological innovation is a critical incentive for businesses to fulfil their social responsibilities under the CEPI. For enterprises to actively respond to society, the compensation effect of innovation must be greater than its cost effect. By examining the interaction between the Central Government, the local government, companies and the public, this research aims to provide theoretical support for accelerating the creation of China’s contemporary environmental governance system.
In the context of China's development of modern environmental governance systems, it is crucial to recognise the vital role played by businesses. The internal impetus for environmental governance will be generated by accelerating the emergence of a universal industry trend of enterprises proactively fulfilling their environmental responsibilities. Therefore, this study utilises listed A-share companies in Shanghai and Shenzhen stock exchanges from 2010 to 2020 as samples to investigate the peer impacts of corporate environmental responsibility (CER). It was discovered that industry peers across and within regions might influence CER. When companies meet their environmental duties, the peer effects of CER may be seen as convergent responsiveness to external pressure. In a cross-regional context, the combination of industry competitive pressure and severe environmental uncertainty may greatly amplify the peer implications of CER, and small businesses are more susceptible to convergence. In an intra-regional scenario, environmental regulatory pressure has dramatically diminished the peer effects of CER, and the high-level marketisation process ensures that environmental regulatory pressure will favour the independent fulfilment of CER. Moreover, this phenomenon is magnified in state-owned enterprises.
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