Shielding or propelling? Political connections and corporate environmental sustainability: the moderating role of social performance feedback

Purpose Prior studies offer mixed evidence on how political connections (PCs) affect corporate environmental behavior. To address this puzzle, the authors distinguish between ascribed and achieved PCs and examine their differential impacts on corporate environmental sustainability (CES) by drawing on resource dependence theory and stakeholder theory. Moreover, this study aims to investigate the moderating role of social performance feedback (SPF). Design/methodology/approach Using a fixed-effects model, the authors analyze a panel data set of 1,127 Chinese A-share listed firms from 2010 to 2022. Findings Firms with ascribed PCs are less engaged in CES (shielding effect), whereas firms with achieved PCs are more involved in CES (propelling effect). Positive SPF strengthens both the shielding effect of ascribed PCs and the propelling effect of achieved PCs on CES, while negative SPF weakens the shielding effect of ascribed PCs. Practical implications In politically embedded environments, firms should strategically differentiate and manage their PCs, to ensure that environmental initiatives are aligned with regulatory mandates, stakeholder demands and sustainability goals. Social implications By uncovering the unequal effects of ascribed and achieved PCs on CES, this study reveals institutional inequalities rooted in political privilege, and underscores the role of stakeholder vigilance and public oversight in promoting corporate accountability, environmental justice and sustainable development. Originality/value This study reveals the double-edged effect of ascribed and achieved PCs on CES, and introduces SPF as a key contingency that shapes firms’ environmental strategy. By linking political ties, stakeholder evaluations and environmental sustainability, the authors develop an integrated framework that advances prior studies.