Research Briefs

How does firm behavior affect financial performance? Depends on your competitive context

RESEARCH BRIEF - Corporate social responsibility is related to positive financial performance.

Reduced carbon emissions lead to improved financial performance—the extent of improvement is industry-dependent

RESEARCH BRIEF - Companies that reduce carbon dioxide (CO2) output enjoy better financial performance.

Sustainability rankings can increase a company’s visibility and equity in the long run

RESEARCH BRIEF - While a firm’s listing on a sustainability ranking such as the Dow Jones Sustainability Index (DJSI) may not influence stock price immediately, there are increasing benefits over time related to visibility and analyst coverage.

External pressure increases gender diversity on boards, but women may still be viewed as outsiders

RESEARCH BRIEF - Companies facing external pressure to increase board gender diversity are more likely to increase the number of women directors.

Boycotting consumers hold companies responsible for negative events, not themselves

RESEARCH BRIEF - Consumers hold companies accountable negative events and disasters, including environmental disasters, supply chain conditions, and mistreatment of employees.

Interdepartmental collaboration improves perceptions of performance of older workers

RESEARCH BRIEF - Organizations should encourage formal and informal collaboration across departments to combat age discrimination and maximize workforce potential.

Empowered female executives reduce corporate legal risk

RESEARCH BRIEF - Increasing high-powered female representation at the executive level can reduce a firm’s exposure to legal risk by up to 20 percent in the following year.

Corporate citizenship is associated with lower cost of equity

RESEARCH BRIEF - Firms that engage in corporate citizenship activities are more likely to benefit from lower equity costs and therefore are more likely to see higher returns on investment overall.

For suppliers, strong environmental goals and firm performance go together

RESEARCH BRIEF - Manufacturing firms have stronger financial performance when they embed environmental practices and targets into business processes and overall corporate culture.

Independent board directors may lead to more transparent sustainability reporting

RESEARCH BRIEF - Companies with independent directors are more likely to create a CSR committee on their boards, which ultimately helps encourage a more transparent culture and disclosure through sustainability reporting using widely adopted standards, such as GRI.

Outside knowledge can improve a firm’s environmental innovation

RESEARCH BRIEF - Firms with access to a larger variety of knowledge sources are in a better position to identify opportunities for environmental innovation.

Firms respond to competitors’ corporate citizenship with ESG investments of their own

RESEARCH BRIEF - ESG votes (whether passed or not) can signal opportunities to gain financial advantage for improved ESG performance.