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Title:The cost of CSR misconduct
Date of publishing:July 01, 2015
Hits:7593
Category:News
Language:English
Also available in the following languages:Dutch, French

The cost of CSR misconduct
July 01, 2015

In its most recent study, Vigeo analyses the occurrence and costs of legal sanctions related to Corporate Social Responsibility (CSR) issues. The analysis observes more than 2.500 companies and their incurred sanctions between 2012 and 2013.

During this period, almost 20% of the analysed companies were subject to sanctions for CSR-related offences. The total costs for the companies, be it judicial convictions, administrative sanctions or settlements, totalled 95.5 billion euro.

By region, most CSR-related sanctions were detected in North-America, where 30% of the analysed companies incurred sanctions. In Europe, this was 22% and in Asia-Pacific 8%. The study also identifies a number of sectors where companies increasingly face legal sanctions such as, for instance, Waste and Water Utilities, the automobile industry, the food industry, pharmaceutical companies and banks.

Most sanctions regard topics related to business behaviour or market ethics. Cases include withholding information from customers, involvement in corrupt affairs and price-fixing. No less than 55% of all legal sanctions are related to this sustainability aspect. The costs incurred from these sanctions accounted for 60 billion euros or 2/3rd of the total.

Consult the full study on this page.