Do Consumers Care About ESG? Evidence from Barcode-Level Sales Data

49 Pages Posted: 29 Oct 2022 Last revised: 25 Sep 2023

See all articles by Jean-Marie Meier

Jean-Marie Meier

The Wharton School, University of Pennsylvania; University of Texas at Dallas - Naveen Jindal School of Management

Henri Servaes

London Business School; Centre for Economic Policy Research (CEPR)

Jiaying Wei

Southwestern University of Finance and Economics

Steven Chong Xiao

University of Texas at Dallas - Naveen Jindal School of Management

Date Written: July 24, 2023

Abstract

Using granular barcode-level sales data from retail stores, we show that environmental and social ratings are positively related to local sales, especially in counties with more Democratic-leaning and higher-income households. Higher ratings of a firm's product market rivals negatively affect a firm's own sales. Controlling for product-year-level heterogeneity, monthly product sales decline after negative firm news on environmental and social issues. Finally, immediately after major natural and environmental disasters, sales in counties located close to the disasters become more sensitive to environmental ratings. Our study provides direct evidence that environmental and social activities affect the revenues of a firm.

Keywords: Retail, ESG, Corporate Social Responsibility

JEL Classification: D12, G32, M14

Suggested Citation

Meier, Jean-Marie and Servaes, Henri and Wei, Jiaying and Xiao, Steven Chong, Do Consumers Care About ESG? Evidence from Barcode-Level Sales Data (July 24, 2023). European Corporate Governance Institute – Finance Working Paper No. 926/2023, Available at SSRN: https://ssrn.com/abstract=4260716 or http://dx.doi.org/10.2139/ssrn.4260716

Jean-Marie Meier

The Wharton School, University of Pennsylvania ( email )

The Wharton School
3620 Locust Walk
Philadelphia, PA 19104
United States

HOME PAGE: http://www.jean-mariemeier.com

University of Texas at Dallas - Naveen Jindal School of Management ( email )

Jindal School of Management
800 W. Campbell Road
Richardson, TX 75080
United States

HOME PAGE: http://www.jean-mariemeier.com/

Henri Servaes

London Business School ( email )

Sussex Place
Regent's Park
London NW1 4SA
United Kingdom
+44 20 7000 8268 (Phone)
+44 20 7000 8201 (Fax)

HOME PAGE: http://faculty.london.edu/hservaes/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Jiaying Wei

Southwestern University of Finance and Economics ( email )

Chengdu
China

Steven Chong Xiao (Contact Author)

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

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