Can corporate good deeds reduce environmental injustice? Evidence from China

This study explores the role of corporate social responsibility (CSR) in enhancing environmental justice. We argue that CSR helps mitigate environmental injustice, a responsibility stemming from ethical considerations faced by corporations. Furthermore, building on previous studies that identify income disparity as the key factor contributing to environmental injustice, we find that regional economic growth, poverty alleviation among the rural poor, and the enhancement of political power are the primary channels through which CSR influences environmental justice. An analysis of Chinese listed companies provides evidence supporting our view, revealing a more pronounced mitigating effect of CSR on environmental injustice in non-state-owned, environmentally friendly, and large-scale firms. Notably, this contribution of CSR to environmental justice is more evident in the economically developed eastern region of China, which boasts a high level of marketization and a favorable business environment. This highlights the substantive role of CSR in environmental justice. By incorporating CSR into environmental justice studies, our research makes a meaningful theoretical advancement in understanding corporate ethical responsibilities and offers practical implications.