National Culture and Carbon Management System

This study examines the impact of national culture on the quality of carbon management system (CMS), addressing a critical gap in the literature that has predominantly focused on regulatory and governance variables while overlooking cultural influences. Using a cross-national sample of large firms from the CDP database, the chapter integrates Hofstede’s cultural dimensions—masculinity, power distance (PD), uncertainty avoidance (UA), individualism, and long-term orientation (LTO)—into a comprehensive framework for analysing CMS quality across governance, operations, accounting, and communication subdimensions. The findings reveal significant relationships between cultural values and CMS quality, with high PD and high masculinity cultures associated with lower CMS quality, while UA and LTO demonstrate higher CMS quality. Further, institutional and sectoral factors moderate these cultural effects. This study highlights the importance of accounting for cultural and institutional contexts to enhance the effectiveness of corporate carbon management strategies, providing actionable insights for policymakers and organizations aiming to address global climate challenges.