Paying the penalty: The cost of CSR misconduct
In this study, Vigeo observes more than 2,500 listed companies around the world, offering an evidence of the existence of a strong link between CSR principles, goals and management and consequent legal risks and costs incurred by companies.
During the two years under review, one out of five companies has received a legal sanction for failing to comply with at least one social responsibility factor. These sanctions represented costs for around 95.5 billion euros. The study identifies sectors and regions in which the largest proportion of companies is exposed to legal sanctions together with the CSR topics whose violation has most frequently generated sanctions and that have generated the highest costs.
The integration of Corporate Social Responsibility in the company’s strategy, therefore, enables the prevention of legal risk and the enhancement of judicial security as a key immaterial asset for the company.
Keywords : ESG, World