Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Business
Beyond Shareholder Value? Why Firms Voluntarily Disclose Support For Black Lives Matter, A. J. Chen, Patricia M. Dechow, Samuel T. Tan
Beyond Shareholder Value? Why Firms Voluntarily Disclose Support For Black Lives Matter, A. J. Chen, Patricia M. Dechow, Samuel T. Tan
Research Collection School Of Accountancy
We investigate why firms voluntarily disclose support for the Black Lives Matter movement (BLM firms) even though these disclosures have little impact on shareholder value. We examine two competing explanations: that managers are acting in the interests of a broad set of stakeholders, or that they are engaging in “woke-washing.” Our evidence supports the stakeholder perspective since we find that BLM firms have more inclusive cultures on multiple dimensions – from their board members, to employees, to the rights of shareholders, and to the compensation structure of top executives. Furthermore, BLM firms face less risk in speaking out since they …
Caremark And Esg, Perfect Together: A Practical Approach To Implementing An Integrated, Efficient, And Effective Caremark And Eesg Strategy, Leo E. Strine Jr., Kirby M. Smith, Reilly S. Steel
Caremark And Esg, Perfect Together: A Practical Approach To Implementing An Integrated, Efficient, And Effective Caremark And Eesg Strategy, Leo E. Strine Jr., Kirby M. Smith, Reilly S. Steel
All Faculty Scholarship
With increased calls from investors, legislators, and academics for corporations to consider employee, environmental, social, and governance factors (“EESG”) when making decisions, boards and managers are struggling to situate EESG within their existing reporting and organizational structures. Building on an emerging literature connecting EESG with corporate compliance, this Essay argues that EESG is best understood as an extension of the board’s duty to implement and monitor a compliance program under Caremark. If a company decides to do more than the legal minimum, it will simultaneously satisfy legitimate demands for strong EESG programs and promote compliance with the law. Building …