Nothing to fear: Strong corporate culture and workplace safety

Jesper Haga, Fredrik Huthamäki, Dennis Sundvik*, Timmy Thor

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

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.
Original languageEnglish
Peer-reviewed scientific journalReview of Quantitative Finance and Accounting
ISSN0924-865X
DOIs
Publication statusPublished - 02.04.2024
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • employee well-being
  • corporate culture
  • workplace injuries
  • workplace safety

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