**Abstract**

In this chapter, we analyze the association between CSR and corporate lobbying. Specifically, we study the impact of CSR and corporate lobbying from an environmental perspective on firm performance in the event of environmental misconduct. We further investigate whether these two policies enhance firms' performance and give response to the call for action from their stakeholders and society, or they are just used to cover firms' dirty activities and help them appear cleaner in the market.

**Keywords:** social responsibility, environmental misconduct, corporate lobbying, firms' value
