Title: Regulating corporate misconduct: training mandates and ESG performance of US firms

Authors: Jaap Donker; Yurim Lee; Toni Sipic; David Zuckerman

Addresses: College of the Sciences, Central Washington University, USA ' Department of Economics, College of Business, Central Washington University, USA ' Department of Economics, College of Business, Central Washington University, USA ' Department of Economics, College of Business, Central Washington University, USA

Abstract: Drawing on variation in the timing of US state-level law adoption, we examine whether government mandates requiring companies to provide sex-based harassment training influence firms' ESG performance across key social metrics. We leverage a fixed effect panel data regression approach and find significant improvements in overall ESG scores, social and governance ratings, equal opportunities and non-discrimination ratings, measure to promote equal opportunities and diversity ratings, and training and education ratings for firms headquartered in states that adopted such laws. Additionally, we find that greater gender diversity within firms' leadership is associated with higher ESG scores, although its moderating effect on the impact of harassment training laws is mixed. Overall, our findings highlight the important role of government regulation in promoting corporate social responsibility practices.

Keywords: sex-based harassment laws; ESG; mandated harassment training; corporate governance; corporate social governance.

DOI: 10.1504/IJCG.2026.153491

International Journal of Corporate Governance, 2026 Vol.16 No.2, pp.214 - 233

Received: 15 Nov 2025
Accepted: 13 Dec 2025
Published online: 11 May 2026 *

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