Found 8 article(s) for author 'Michael Toffel'

Shareholder Activism and Firms’ Voluntary Disclosure of Climate Change Risk

Shareholder Activism and Firms’ Voluntary Disclosure of Climate Change Risk. Michael Toffel, October 2019, Paper, “This paper examines whether—in the absence of mandated disclosure requirements—shareholder activism can elicit greater disclosure of firms’ exposure to climate change risks. We find that environmental shareholder activism increases the voluntary disclosure of climate change risks, especially if initiated by investors who are more powerful (institutional investors) or whose request has more legitimacy (long-term institutional investors). We also find that companies that voluntarily disclose climate change risks following environmental shareholder activism achieve a higher valuation, suggesting that investors value transparency with respect to climate change risks.Link

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CSR Needs CPR: Corporate Sustainability and Politics

CSR Needs CPR: Corporate Sustainability and Politics. Michael Toffel, June 6, 2018, Paper, “Corporate sustainability has gone mainstream, and many companies have taken meaningful steps to improve their own environmental performance. But while corporate political actions such as lobbying can have a greater impact on environmental quality, they are ignored in most current sustainability metrics. It is time for these metrics to be expanded to critically assess firms based on the sustainability impacts of their public policy positions. To enable such assessments, firms must become as transparent about their corporate political responsibility (CPR) as their corporate social responsibility (CSR). For their part, rating systems must demand such information from firms and include evaluations of corporate political activity in their assessments of corporate environmental responsibility.Link

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The Integrity of Private Third-Party Compliance Monitoring

The Integrity of Private Third-Party Compliance Monitoring. Michael Toffel, January 5, 2017, Paper, “Government agencies are increasingly turning to private, third-party monitors to inspect and assess regulated entities’ compliance with law, just as companies hire auditors to assess their financial accounts, operations, and supply chains. The integrity of these regimes rests on the validity of the information third-party monitors provide. The challenge in designing third-party monitoring regimes is that for-profit private monitors, typically selected and paid by the firms subject to monitoring, have incentives to downplay problems they observe in order to satisfy and retain their clients or to earn income from selling other services. This paper discusses the most important factors that our research and the research of many others has shown can affect the integrity of third-party monitoring and highlights some policy implications for regulators and companies designing third-party monitoring regimes.Link

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Monitoring Global Supply Chains

Monitoring Global Supply Chains. Michael W. Toffel, March 2, 2015, Paper. “Firms seeking to avoid reputational spillovers that can arise from dangerous, illegal, and unethical behavior at supply chain factories are increasingly relying on private social auditors to provide strategic information about suppliers’ conduct. But little is known about what influences auditors’ ability to identify and report problems. Our analysis of nearly 17,000 supplier audits reveals that auditors report fewer violations when individual auditors have audited the factory before, when audit teams are less experienced or less trained, when audit teams are all-male…” Link

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Codes in Context: How States, Markets, and Civil Society Shape Adherence to Global Labor Standards

Codes in Context: How States, Markets, and Civil Society Shape Adherence to Global Labor Standards. Michael Toffel, September 8, 2014, Paper. “Transnational business regulation is increasingly implemented through private voluntary programs—like certification regimes and codes of conduct—that diffuse global standards. But little is known about the conditions under which companies adhere to these standards. We conduct one of the first large-scale comparative studies to determine which international, domestic, civil society, and market institutions promote supply chain factories’ adherence to the global labor standards embodied in codes of conduct imposed by multinational buyers. We find that suppliers are more likely to adhere when they are embedded in states that participate actively in the ILO treaty regime and that have stringent domestic labor law and high levels of press freedom. We further demonstrate that suppliers perform better when they serve buyers located in countries where consumers are wealthy and socially conscious. Taken together, these findings suggest the importance of overlapping state, civil society, and market governance regimes to meaningful transnational regulation …” Link

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Women Make More Rigorous Supply Chain Auditors

Women Make More Rigorous Supply Chain Auditors. Michael Toffel, April 24, 2014, Opinion. “A year after the Rana Plaza factory collapse killed more than 1,100 garment workers, we continue to look for ways to improve working conditions in developing countries like Bangladesh. One focus has been on private audits, which add a valuable layer of oversight, determining which suppliers remain eligible to receive client orders. Social auditors from the private sector assess the extent to which factories in developing countries adhere to codes of conduct set by multi-national corporations to address workplace conditions…” Link verified June 19, 2014

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Monitoring the Monitors: How Social Factors Influence Supply Chain Auditors

Monitoring the Monitors: How Social Factors Influence Supply Chain Auditors. Michael Toffel, February 9, 2014, Paper. “Supply chain auditors provide companies with strategic information about the practices of suppliers, yet little is known of what influences auditors’ ability to identify and report dangerous, illegal, and unethical behavior at factories. Drawing on insights from the literatures on street-level bureaucracy and on regulatory and audit design, we theorize and investigate the factors that shape the practices of private supply chain auditors…” Link verified June 19, 2014

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Customer-Driven Misconduct: How Competition Corrupts Business Practices

Customer-Driven Misconduct: How Competition Corrupts Business Practices. Michael Toffel, August 2013, Paper. “Competition among firms yields many benefits but can also encourage firms to engage in corrupt or unethical activities. We argue that competition can lead organizations to provide services that customers demand but that violate government regulations, especially when price competition is restricted. Using 28 million vehicle emissions tests from more than 11,000 facilities, we show that increased competition is associated with greater inspection leniency…” Link Verified October 11, 2014

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