Drawing on tournament theory, we argue that when environmental goals are incorporated into the cadre evaluation system, compared to officials who are close to retirement (i.e., retiring officials), non-retiring officials may exert more effort to foster risky green innovation. Based on a sample of publicly traded firms from heavily polluting industries in China between 2008 and 2016, we hypothesize and find that confronted with severe environmental pollution, firms in provinces with non-retiring governors have higher green innovation performance than those in (...) provinces with retiring governors. Moreover, we find that this effect is stronger for firms in provinces whose governors have higher promotion anticipation, for local state-owned enterprises (SOEs), and for politically connected firms. Our study identifies the political incentives of government officials as an important antecedent of corporate green innovation and highlights the value of establishing a “green” cadre evaluation system to promote sustainable development. (shrink)

The purpose of this article is to investigate to what extent is business and society literature idealistic as it advocates the adoption of high moral norms for business performance. The author discusses the central theses of mainstream themes in this literature—corporate social responsibility, corporate social responsiveness, social issues, corporate social performance, stakeholder management, corporate citizenship, business ethics, sustainable development, and corporate sustainability—and evaluates their descriptive accuracy, normative validity, and instrumental power. Poor description of reality, underdeveloped business logic, and questionable prescriptions (...) are indicative of the idealism of these themes. This study reveals many realistic and achievable propositions, which dilute the concern that business and society literature is idealistic. However, three elements in the field—its (rhetorical) criticism of corporate conduct, the predominantly normative notions of its concepts, and its underdeveloped instrumental ideas—underline its idealistic orientation. (shrink)