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Nothing to fear: strong corporate culture and workplace safety
Hanken School of Economics, Vaasa, Finland.
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Business Administration.
Hanken School of Economics, Vaasa, Finland.
Hanken School of Economics, Helsinki, Finland.
2024 (English)In: Review of Quantitative Finance and Accounting, ISSN 0924-865X, E-ISSN 1573-7179, Vol. 63, no 2, p. 519-550Article in journal (Refereed) Published
Abstract [en]

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.

Place, publisher, year, edition, pages
Springer Nature, 2024. Vol. 63, no 2, p. 519-550
Keywords [en]
Corporate culture, Employee well-being, Workplace injuries, Workplace safety
National Category
Business Administration
Identifiers
URN: urn:nbn:se:umu:diva-223234DOI: 10.1007/s11156-024-01264-6ISI: 001195638100001Scopus ID: 2-s2.0-85189525486OAI: oai:DiVA.org:umu-223234DiVA, id: diva2:1852797
Funder
Marcus Wallenbergs Foundation for International Scientific CollaborationTore Browaldhs stiftelseAvailable from: 2024-04-19 Created: 2024-04-19 Last updated: 2024-07-26Bibliographically approved

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Huhtamäki, Fredrik

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CiteExportLink to record
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