Kyle Welch, assistant professor of accountancy, co-authored a research paper with Aaron Yoon, Northwestern University Dept. of Accounting Information & Management, “Corporate Sustainability and Stock Returns: Evidence from Employee Satisfaction,” which provides evidence that employee buy-in seems to be a necessary component for firm environmental, social and governance (ESG) efforts to add value to firms. The paper finds that ESG coupled with high employee satisfaction leads to greater value for stockholders. These findings help provide understanding of the circumstances necessary for ESG to generate value and have strong implications for HR professionals.
June 15, 2020