This comprehensive study delves into the intricate dynamics shaping the relationship between corporate lobbying and corporate environmental responsibility, offering valuable insights into the nuanced interplay within this critical intersection of business and sustainability. By scrutinizing a meticulously selected sample of US-listed companies from the S&P 500 index spanning the period 2015 to 2019, our investigation uncovers a significant and adverse correlation between corporate lobbying activities and the extent of corporate environmental engagement. Notably, our findings extend beyond, revealing that heightened corporate lobbying is associated with a tangible reduction in environmental investment initiatives undertaken by these companies. This suggests that the influence exerted through lobbying channels may potentially hinder internal environmental commitment and resource allocation towards sustainability initiatives.

Additionally, amidst this negative relationship, our research uncovers a contrasting positive correlation between corporate lobbying and firms' engagement in environmental partnerships. This intriguing dimension implies that, while lobbying may impede internal environmental investments, it paradoxically fosters collaborative efforts with external entities for environmental causes. Crucially, our results stand the test of robustness through meticulous subsample analyses, reinforcing the reliability and validity of our findings. In essence, this study contributes significantly to the evolving discourse on corporate environmental responsibility by unraveling the complex and multifaceted impact of lobbying on both internal and external facets of corporate sustainability initiatives

Kewords: Lobbying, Environmental responsibility, Environmental misconduct
JEL Classification : D72, M14, R11