Nothing to fear: strong corporate culture and workplace safety

Jesper Haga (), Fredrik Huhtamäki (), Dennis Sundvik () and Timmy Thor ()
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Jesper Haga: Hanken School of Economics
Fredrik Huhtamäki: Umeå University
Dennis Sundvik: Hanken School of Economics
Timmy Thor: Hanken School of Economics

Review of Quantitative Finance and Accounting, 2024, vol. 63, issue 2, No 4, 519-550

Abstract: Abstract In this paper, we investigate the link between corporate culture and workplace safety. Using a machine learning based measure of corporate culture and data on employee- and safety-related violations, we find that firms with stronger corporate culture are less likely to be penalized, incur lower regulatory fines, and have a reduced number of violations. As a potential channel, we document higher safety expenditures with stronger corporate culture. When we examine establishment-level data on actual injuries and illnesses, we find that firms with stronger corporate culture have significantly lower injury and illness rates. While shareholders have previously been found to benefit from a stronger corporate culture, we contribute with both research and practical implications on the positive effects of a strong corporate culture for employees and society at large.

Keywords: Employee well-being; Corporate culture; Workplace injuries; Workplace safety (search for similar items in EconPapers)
JEL-codes: G3 J28 K32 M41 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s11156-024-01264-6

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