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Is Corruption Sand or Grease in the Wheels of Corporate Sustainability?

Lookup NU author(s): Dr Irene ChuORCiD

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This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0).


Abstract

Applying the institutional logics perspective, we examine how pervasive corruption influences the economic, social and environmental dimensions of corporate sustainability. We argue that pervasive corruption functions as an institutionalized logic, whose compatibility with the stakeholder accountability logic, underpinning corporate sustainability practices, varies across sustainability dimensions, and that this relationship is moderated by stakeholder pressure, financial slack and institutional ties. Using time-lagged survey data from CEOs (t1) and sustainability managers (t2) in 242 domestic firms in Ghana, we find that pervasive corruption has a negative relation with environmental sustainability, a negative but insignificant, thus negligible, relation with social sustainability and a positive relation with economic sustainability. Firms’ financial slack and institutional ties strengthen the negative relations, while pro-sustainability stakeholder pressure weakens the negative relations, but has not significant influence on positive relations. Our study extends the corruption–sustainability debate by highlighting its multidimensional nature and the conditions that perpetuate corruption and shape how pervasive corruption interacts with corporate sustainability.


Publication metadata

Author(s): Vazquez-Brust D, Adomako S, Preuss L, Chu I

Publication type: Article

Publication status: Published

Journal: Journal of Enviromental Management

Year: 2026

Volume: 400

Print publication date: 15/02/2026

Online publication date: 04/02/2026

Acceptance date: 31/01/2026

Date deposited: 17/04/2026

ISSN (print): 0301-4797

ISSN (electronic): 1095-8630

Publisher: Elsevier BV

URL: https://doi.org/10.1016/j.jenvman.2026.128849

DOI: 10.1016/j.jenvman.2026.128849

Data Access Statement: The data that has been used is confidential


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