HC 7 Flashcards
Academic evidence public tax-return disclose
Pro: increased transparency will improve tax compliance
Con: it divulges sensitive information that is misunderstood
interactive feature of corporate social media (pos/neg)
Neg: interactivity gives disgruntled customers a forum to air their negative views not only with the firm but with other stakeholders. Interactive social media accounts can facilitate a viral distribution of negative sentiment, exacerbating the negative perceptions of the firm and its products.
Pos: Interactive social media enables the firm to monitor user concerns (including otherwise hidden user to user dialogue) and respond accordingly. The firm has the ability to direct and influence conversations, and to demonstrate its sensitivity to customer needs and concerns.
Academic Evidence
Does social media interaction with customers help?
Corporate social media, in general, attenuates the negative stock price reaction to product recall announcements
Lyon T, Delmas M., Maxwell J et al., 2018, CSR needs CPR: corporate sustainability and politics
More transparency is needed on corporate political actions, such as lobbying and campaign financing. ESG rating agencies are not measuring political connections.
Those who assess firms on their social and environmental performance should add another critical dimension to their assessment of civic virtue and responsibility, namely, the extent to which firms support (or oppose) public policies that contribute to sustainability.
CSDDD due diligence should cover:
human rights and environmental adverse impacts generated throughout the majority of the life-cycle of production, distribution, transport and storage of a product or provision of services.