<p>With the growing importance of environmental, social, and governance (ESG) practices, many firms engage in communication to showcase their ESG commitments without implementing corresponding substantive actions, a phenomenon known as ESG decoupling. This behavior not only misleads stakeholders but also raises significant ethical and reputational concerns globally. Drawing on the imprinting perspective, which posits that critical life experiences leave enduring effects on individuals’ cognition and behavior, we examine the role of top management team (TMT) foreign experience in shaping ESG practices. Using a sample of 600 Chinese firms, we find that firms led by TMTs with greater foreign experience tend to exhibit lower levels of ESG decoupling and demonstrate more substantial ESG delivering. This relationship is stronger among firms that are cross-listed or have a higher level of foreign ownership. Our findings contribute to the international business literature by highlighting the critical role of foreign experience in shaping organizational sustainability practices and offer important practical implications for improving the credibility of ESG initiatives.</p>

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Decoupling or Delivering? Exploring Managerial Influence on ESG Practices Through an Imprinting Perspective

  • Jiayan Ding,
  • Yiyi Su,
  • Sihong Wu,
  • Xinyu Hu,
  • Di Fan

摘要

With the growing importance of environmental, social, and governance (ESG) practices, many firms engage in communication to showcase their ESG commitments without implementing corresponding substantive actions, a phenomenon known as ESG decoupling. This behavior not only misleads stakeholders but also raises significant ethical and reputational concerns globally. Drawing on the imprinting perspective, which posits that critical life experiences leave enduring effects on individuals’ cognition and behavior, we examine the role of top management team (TMT) foreign experience in shaping ESG practices. Using a sample of 600 Chinese firms, we find that firms led by TMTs with greater foreign experience tend to exhibit lower levels of ESG decoupling and demonstrate more substantial ESG delivering. This relationship is stronger among firms that are cross-listed or have a higher level of foreign ownership. Our findings contribute to the international business literature by highlighting the critical role of foreign experience in shaping organizational sustainability practices and offer important practical implications for improving the credibility of ESG initiatives.