ESG impact of Michigan and Indiana right-to-work laws

We examine the Environmental, Social, and Governance (ESG) performance of Michigan and Indiana companies before and after they passed the Right-to-Work (RTW) laws in 2012 by referencing it against that of companies in states with and without RTW laws. Our findings indicate that after the laws were p...

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Bibliographic Details
Published in:Applied economics letters 2021-10, Vol.28 (17), p.1441-1445
Main Authors: Gondhalekar, Vijay, Picard, Joerg, Vannette, Morgan
Format: Article
Language:English
Subjects:
Companies
difference in difference
Economic analysis
Economic theory
Economics
ESG
Governance
Indiana
Michigan
Right to work
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Summary:We examine the Environmental, Social, and Governance (ESG) performance of Michigan and Indiana companies before and after they passed the Right-to-Work (RTW) laws in 2012 by referencing it against that of companies in states with and without RTW laws. Our findings indicate that after the laws were passed the Environmental and Social performance of companies in these two states declined on the compliance dimension and so did some of their Social performance on the proactive dimension. Outside of some of the common trends in the ESG performance of companies in states with and without RTW laws, the Social performance of companies in states without RTW laws declined on the proactive dimension as well after the laws were passed. Performance pertaining to Governance was unaffected for companies after the enactments.
ISSN:1350-4851
1466-4291
DOI:10.1080/13504851.2020.1822509