Understanding the impact of environmental, social, and governance incidents on food producing corporations.

J Environ Manage

Department of Management, Bogazici University, Istanbul, Turkey; Department of Banking and Finance, University of Zurich, Zurich, Switzerland.

Published: December 2024

AI Article Synopsis

  • The study examines how Environmental, Social, and Governance (ESG) reputational issues impact the financial performance of major agricultural corporations.
  • Larger firms show resilience to ESG-related event impacts, while smaller firms experience notable and lasting declines in stock prices.
  • The importance of strong Corporate Social Responsibility (CSR) practices is highlighted, suggesting that firms need to adopt socially responsible strategies to maintain both reputation and financial health.

Article Abstract

This study investigates the intricate relationship between Environmental, Social, and Governance-related reputational disasters and the financial performance of prominent, food-producing agricultural corporations. Results reveal a significant differential response pattern between large and small firms after ESG-related events. Large entities initially exhibit resilience with no immediate negative returns, while smaller entities face substantial, significant, and persistent stock market depreciation. Furthermore, direct interactions are identified between the depth of Corporate Social Responsibility (CSR) incorporation and the severity of stock price decline. For investors, ESG track record emerges as a critical assessment criterion. The theoretical implications extend to understanding the importance of robust ESG frameworks, not just for reputational integrity but also for financial stability. The findings emphasise corporations' urgency to integrate forward-looking, socially responsible strategies, particularly in the agricultural sector.

Download full-text PDF

Source
http://dx.doi.org/10.1016/j.jenvman.2024.123072DOI Listing

Publication Analysis

Top Keywords

environmental social
8
understanding impact
4
impact environmental
4
social governance
4
governance incidents
4
incidents food
4
food producing
4
producing corporations
4
corporations study
4
study investigates
4

Similar Publications

Want AI Summaries of new PubMed Abstracts delivered to your In-box?

Enter search terms and have AI summaries delivered each week - change queries or unsubscribe any time!