Honor and independence: How poverty alleviation awards reduce the corporate major clients’ dependence in China

• Poverty governance awards reduce firms’ dependence on major clients. • Awards enhance public attention and improve disclosure quality. • Increased visibility helps firms attract a broader client base. • Government recognition encourages CSR engagement in poverty alleviation. • Policy incentives promote sustainable development through corporate action. This study explores the intersection of corporate social responsibility (CSR) and sustainable economic practices by examining the impact of poverty alleviation awards on corporate client dependency. Grounded in social responsibility theory and customer relationship management theory, this research investigates whether recognition for poverty alleviation efforts can influence firms' dependence on major clients. Utilizing a dataset of non-financial listed companies on the Shanghai and Shenzhen A-shares from 2014 to 2023, we employ a robust empirical methodology to assess the effect of award participation on client concentration. Our findings reveal that companies recognized for their contributions to poverty alleviation exhibit a significant reduction in reliance on major clients. This effect is particularly pronounced among firms with lower operating risk and stronger market competitiveness. We further identify two key mediating mechanisms: enhanced public attention and improved information disclosure quality. These pathways highlight how CSR initiatives can not only contribute to social welfare but also enhance corporate resilience and sustainability. The results suggest that governments should continue to incentivize corporate participation in poverty alleviation through awards and supportive policies. Meanwhile, companies can leverage CSR activities to improve their public image and mitigate the risks associated with over-reliance on major clients. This study contributes to the broader discourse on sustainable development by demonstrating the potential for CSR to drive both social and economic sustainability.