Environmental Performance Boosts Market Value, But a Firm’s Collective Reputation May Sink It

As it turns out, maybe you should give a darn about your bad reputation—at least if you’re a major corporation. A study on corporate sustainability by Ann Terlaak of the Wisconsin School of Business suggests that while environmental performance matters, so does whether its organizational structures are perceived to be unethical.

Terlaak, an associate professor of management and human resources, and co-authors Seonghoon Kim and Matthew Potoski of the University of California–Santa Barbara, found that while markets generally value strong environmental performance, they value it less if a firm belongs to an “organizational form” that is associated with unethical behavior.

Read full article at: https://business.wisc.edu/news/environmental-performance-boosts-market-value-but-a-firms-collective-reputation-may-sink-it/