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ORIGINAL RESEARCH article

Front. Environ. Sci.
Sec. Environmental Policy and Governance
Volume 12 - 2024 | doi: 10.3389/fenvs.2024.1426046

Environmental Penalties and Corporate Carbon Disclosure in China: Divergent Effects of Resource Availability and the Role of Social Media Pressure

Provisionally accepted
Jing Shao Jing Shao 1Wenjie Li Wenjie Li 1Lingtong Huang Lingtong Huang 1Yuanhao Tian Yuanhao Tian 2*
  • 1 Qingdao University, Qingdao, Shandong Province, China
  • 2 Florida International University, Miami, United States

The final, formatted version of the article will be published soon.

    In response to environmental concerns potentially escalating into severe climate change, governments worldwide have set ambitious targets to reduce carbon emissions. Given that corporations are major contributors to carbon output through their extensive economic and social activities, understanding their compliance behaviors is crucial. This study examines the impact of environmental penalties on carbon disclosure among Chinese corporations listed from 2009 to 2019, drawing on organizational legitimacy theory. We analyze how these penalties, serving both as incentives and controls, influence corporate practices, particularly under varying financial conditions. The results indicate that penalties significantly enhance carbon disclosure primarily in firms with limited access to funding, whereas their impact lessens in financially robust firms. Additionally, this research explores how social media scrutiny can amplify the effects of environmental penalties by increasing public pressure on companies to improve transparency in carbon reporting. The findings suggest that enhanced regulatory frameworks, coupled with active social media involvement, can drive better corporate transparency regarding carbon emissions. Consequently, this underscores the need for integrated strategies involving governments, businesses, and social media platforms to foster comprehensive carbon management and disclosure practices.

    Keywords: Sustainability strategy, transformation, punishment mechanisms, corporate resources management, Social Media, Carbon disclosure, carbon reduction regulation

    Received: 20 May 2024; Accepted: 10 Dec 2024.

    Copyright: © 2024 Shao, Li, Huang and Tian. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

    * Correspondence: Yuanhao Tian, Florida International University, Miami, United States

    Disclaimer: All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.