This paper explores the causal effects of management compensation incentives on corporate social and environmental responsibility (CSR & CER) of Chinese energy enterprises from 2010 to 2021. Using panel data and instrumental variable estimation, the study finds that management salary incentives significantly promote CSR and CER, while equity incentives have a negative effect. Industry and ownership differences are noted, with negative equity incentive impacts being more pronounced in the electricity and environmental industry, and salary incentives having a greater positive effect on CSR for state-owned enterprises. The study suggests focusing on salary incentives and reducing equity incentives for managers, and government attention to the development of state-owned energy enterprises.

Jiaxin He, Jingyi Li, Xing Chen