Good Jobs First

The Effect of Legal Violations on Perceived Sustainability Performance

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Hundreds of companies violate US federal, state, and local laws each year. Do these transgressions affect how these companies are rated by ESG (Environment, Social, and Governance) experts? Using an excellent data set called Violation Tracker from Good Jobs First, we show there is a 52% correlation between the change in number of violations over a 15 month period and the change in our Leadership Ethics rating.

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