You know who's a silent hero when it comes to making companies act responsibly? Unions! Over a decade-long study, researchers discovered that unions are like a secret weapon in reducing big, controversial issues related to the environment, society, and how companies are run (let's call them ESG issues). They also increase the chances of companies bragging about their social responsibility (CSR reporting). How do they do it? By championing employee welfare and sustainability. It's not just the bosses or people who own shares who make this happen. In fact, while bosses can influence CSR reporting, they don't do much to tackle those ESG issues. And surprise, surprise—shareholders, who love profits and control, barely make a ding in these areas. So, next time you think about who's pushing companies to do the right thing, remember the unions!
