Research Briefs

Companies with gender diverse boards are more likely to receive corporate recognition. Research finds that boards with a higher percentage of females are more likely to appear on corporate “best of” lists.

With the increasing prevalence of sustainability reporting, many firms are becoming more sensitive to the external ramifications—including financial penalties—of their environmental performance. Research finds that poor environmental performance results in increased cost to the company through greater expectations for return on equity and higher interest rates.

The benefits of positive corporate citizenship extend to firms’ credit ratings. Those companies that invest in corporate citizenship, especially in the areas of community, diversity, employee relations, the environment, and product characteristics, have better credit ratings.

Corporate citizenship practitioners looking to reap the greatest benefits from long-term volunteering should work to ensure that certain conditions are met. Research finds that— given the presence of certain characteristics (e.g., utilization of professional skills; sufficient support and resources throughout the project)—long-term volunteering will create benefits for the company, its employees, and its non-profit partners in the form of increased employee engagement, skill development, and independent volunteering.

In China, cause marketing was shown to be most effective when coupled with price discounts, provided those discounts were moderate. Deep discounts were shown to diminish the effectiveness of cause marketing.

Many corporate citizenship practitioners are aware that employee telecommuting offers environmental benefits. According to a 2014 study, the practice can also improve job performance, interpersonal work relationships, and dedication of employees.

Investing in environmental products can improve consumer brand attitude. A recent study found that consumers felt more positively about a brand when it introduced green products.

Researchers studied the effects of the 2001 Climate Change Levy—a climate change policy that the U.K. imposed on manufacturing, and found that it reduced energy intensity in the manufacturing sector, with no negative impact on employment, gross output, or productivity.

For companies operating in China, looking at the attributes of your corporate partners may hold some important clues as to what they may expect in your ESG reporting. In China, voluntary reporting guidelines aimed at balancing environmental, social, and governance (ESG) impacts of economic growth are driving CSR reporting, especially when firms have ties to the government.

Building on the findings of more than 100 studies, researchers confirm that female board representation increases firm financial performance, and find that firms located in countries with greater gender equality and shareholder protections especially benefit.

Companies that create formal corporate citizenship policies—complete with targets, measures, and consequences—outperform over the long-term companies that do not.

Firms can benefit by embracing the different mindsets and experiences offered through diversity—advantages observed included by increased new product innovations and better access to foreign markets.