Impact of entrepreneur's socioeconomic status on corporate environmental conduct and misconduct: The moderating role of family ownership

Abstract

The impact of an actor's status on corporate ethical issues has been debated in strategy management. Drawing on upper echelons theory and status theory, our study aims to address this theoretical puzzle by examining how an entrepreneur's socioeconomic status affects a firm's engagement in positive environmental conduct and negative environmental misconduct, as well as the moderating effects of family ownership in China's emerging economy. Our analysis of 3281 private firms from a national survey in China reveals that an entrepreneur's socioeconomic status not only promotes corporate environmental conduct but also stimulates environmental misconduct. These effects are more pronounced in firms with higher levels of family ownership. By uncovering the complex impact of an entrepreneur's socioeconomic status on corporate environmental actions, our study contributes novel insights to the environmental management literature.