Alam, M.S., Haque, F., Puwanenthiren, P. and Uddin, S.M.S. 2025. Whoever Walks in Integrity Walks Securely: Does Corporate Integrity Culture Mitigate Climate Change Exposure? Journal of Business Ethics. Advanced online publication. https://doi.org/10.1007/s10551-025-06088-5
| Title | Whoever Walks in Integrity Walks Securely: Does Corporate Integrity Culture Mitigate Climate Change Exposure? |
|---|---|
| Type | Journal article |
| Authors | Alam, M.S., Haque, F., Puwanenthiren, P. and Uddin, S.M.S. |
| Abstract | This study examines the relationship between corporate integrity culture and firm-level climate change exposure. Using insights from social norm theory and a sample of 31,187 firm-year observations from US firms between 2001 and 2021, we conclude that corporate integrity culture is negatively associated with climate change exposure. Our results remain robust across various robustness tests, including propensity score matching (PSM), an instrumental variable approach, and difference-in-differences (DiD) analysis. Further, our channel analysis suggests that a strong integrity culture mitigates corporate climate change exposure through a stronger internal control environment and higher environmental, social, and governance (ESG) disclosures. Finally, our cross-sectional analysis shows that the negative association between corporate integrity culture and climate change exposure is more pronounced for firms with higher climate policy uncertainty and greater financial distress. Overall, we present novel evidence on how corporate integrity culture mitigates climate risk with important implications for managers and policymakers. |
| Keywords | Climate change exposure |
| corporate integrity culture | |
| social norm theory | |
| ESG | |
| internal controls | |
| climate policy uncertainty | |
| Journal | Journal of Business Ethics |
| ISSN | 0167-4544 |
| Year | 2025 |
| Publisher | Springer Nature |
| Publisher's version | License CC BY 4.0 File Access Level Open (open metadata and files) |
| Digital Object Identifier (DOI) | https://doi.org/10.1007/s10551-025-06088-5 |
| Publication dates | |
| Published online | 29 Aug 2025 |