Green corporate image: Assessing the effects of climate change management practices on corporate reputation

Abstract

Abstract The overarching aim of this study is to determine how distinct climate change management practices (CMPs), ranging from the establishment of carbon targets to the adoption of renewable energy and carbon assurance, resonate in the realm of corporate reputation (CR). The study sample comprises US S&P 500 companies (2016–2018). Reputation insights are obtained from the Global RepTrak® Pulse of the Reputation Institute, and data on the adoption of various CMPs are extracted from Carbon Disclosure Project reports. Logistic regression analysis shows that the findings underscore the pivotal role of absolute carbon and renewable energy use targets in enhancing CR. However, the effects of CMPs on CR vary with carbon trading regulations and intensive sector affiliation. The main findings hold after the Heckman selection model is used as an endogeneity technique. This research offers valuable insights to corporations that seek to strategically manage their reputation amidst the challenges of climate change.

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