Research Briefs

Firms in environmentally intensive industries that choose to invest in environmental efforts during times of stability and growth may experience financial benefits.

Companies that invest in corporate citizenship may strengthen their financial performance over the long-term. A recent study of firms that adopted responsible social and environmental practices outperformed other firms in sales growth, experienced less financial volatility, and were more likely to survive over the course of 15 years.

CEO and CFOs who provide quality disclosure regarding their company’s financial performance may be rewarded with higher bonuses, as quality disclosure can serve as a signal of responsible management to a firm’s Board of Directors that is highly valued.

For the majority of consumers, if the communication frames the listener to identify as part of a local community, environmental messages targeted at addressing an issue locally are more effective at increasing purchase intentions than those that frame the issues as global.

Environmental boycotts and proxies are increasingly used by stakeholders to alter a firm’s environmental behavior. Firms seeking to avoid proxy proposals or boycotts would do well to proactively adopt environmental management systems.

Manufacturers in emerging economies that voluntary adopt a labor code experience lower employee absenteeism, a substantial and immediate increase in sales volume, and can offer more competitive prices on products through operational improvements than non-adopting competitors.

When faced with mounting competition from foreign rivals, U.S. companies tend to increase corporate citizenship investment as a way to differentiate themselves.

Observations of more than 19 years of social and financial performance data reveals that companies that consistently engage in corporate citizenship initiatives benefit from positive short-term financial results.

Firms that engage in positive employee-related activities—in addition to customer-related activities—achieve greater firm value.

Corporate citizenship practitioners should make the most out of limited resources by applying to indices that emphasize activities that are already integral to company strategy and measure efforts for which you have metrics.

On April 13, 2016, the Securities and Exchange Commission issued a new Concept Release regarding public company disclosures through Regulation S-K. The public comment period will be open until July 21, 2016.

Firms that partner with activist groups to voluntarily boycott social and environmental violators in their supply chains are less likely to be targeted themselves by a boycott in the short term.