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Nothing to fear: strong corporate culture and workplace safety

Author

Listed:
  • Jesper Haga

    (Hanken School of Economics)

  • Fredrik Huhtamäki

    (Umeå University)

  • Dennis Sundvik

    (Hanken School of Economics)

  • Timmy Thor

    (Hanken School of Economics)

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.

Suggested Citation

  • Jesper Haga & Fredrik Huhtamäki & Dennis Sundvik & Timmy Thor, 2024. "Nothing to fear: strong corporate culture and workplace safety," Review of Quantitative Finance and Accounting, Springer, vol. 63(2), pages 519-550, August.
    • Handle: RePEc:kap:rqfnac:v:63:y:2024:i:2:d:10.1007_s11156-024-01264-6
    DOI: 10.1007/s11156-024-01264-6
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    References listed on IDEAS

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    More about this item

    Keywords

    Employee well-being; Corporate culture; Workplace injuries; Workplace safety;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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