Keywords: Environmental and Social Issues, Corporate Responsibility Shifting, Institutional Own-ership, Activism, Violation Tracker, Glassdoor Employee Reviews
JEL classification: G23, G30, G34, M14
학회소식
[2022년 5차 CAFM2022]The Hidden Cost of Going Green: Evidence from Firm-Level Violations & Employee Reviews
작성자 : 관리자
조회수 : 345
게시일 :
2022-12-20
This paper explores whether corporations resort to cutting social investments when responding to pressures from environmental authorities and various stakeholders to adopt pro-environmental policies. Our study documents the first evidence of a robust negative relationship between a firm’s environmental and social responsibilities, as measured by the penalties imposed on the firm’s social violations and Glassdoor employee reviews. We use the engagement by large institutional investors on the environmental performance of their portfolio firms to reinforce our findings that when a firm goes green, it reduces emissions but at the expense of its social responsibility. This phenomenon, which results in more efficient asset utilization, higher profitability, and firm value, becomes more severe when management is under pressure from external and internal forces.
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