This article examines the impact of cultural inclusion on corporate sustainability in China. A food taste deviation index, measuring cultural inclusion based on food culture, was developed and correlated with corporate total factor productivity (TFP). Findings reveal an uneven distribution of cultural inclusion across China, impacting firm sustainability. Firms in regions with higher cultural inclusion exhibited higher TFP. Instrumental variable regression (using mountainous undulation) and regression discontinuity design were used to establish causality and mitigate bidirectional effects. The study also highlights the role of top managers' home region cultural inclusion in enhancing corporate sustainability and the mechanism of increased social responsibility toward staff in more inclusive regions. Heterogeneous effects were observed across firms with different levels of industry competition and analyst attention.

Guangfan Sun, Xin Lin, Junyi Chen, Nuo Xu, Ping Xiong, Hanqi Li