The new paper from @HarvardHBS professor Jonas Heese confirms that the press serves as a watchdog and keeps businesses in check https://t.co/K0xbCmygpo
— Harvard University (@Harvard) October 13, 2021
In the US, "a study of misbehavior among publicly traded companies illustrates the critical watchdog role that newspapers play, and the problems that arise when publications go out of business", according to research by Harvard Business School Professor Jonas Heese.
When local newspapers shutter, some businesses evidently treat the lack of press coverage as permission to act badly and end up committing more illegal violations, including pollution, workplace safety infractions, and financial fraud, according to Heese’s research.
According to Professor Heese:
If you can do whatever you want and no one is looking, you’re more likely or more willing to engage in fraud. If the local media doesn’t make a fuss, you can pay the penalty to regulators without it affecting your reputation.
For his research, Professor Heese relied on Violation Tracker, "the first wide-ranging database on corporate misconduct" which traces violations and penalties from 44 federal regulatory agencies.
Here's the Violation Tracker entry for LafargeHolcim – the parent company of Aggregate Industries. Penalties since 2000 in the US alone total $281,993,283 at the time of writing.
Other violations around the world can be found here.
Fortunately in East Devon, the local press continues to survive. A search of the Sidmouth Herald archive shows the newspaper has followed the Straitgate debacle since 2011.
Around the globe, @LafargeHolcim is accused of polluting waterways and other forms of pollution. In the US alone, Lafarge has paid $279 million in penalties since 2000 (cc @GoodJobsFirst) https://t.co/odVMUN3Mjv
— CleanWaves (@CleanWaves3) May 3, 2021
For years, @LafargeHolcim violated the law and leaked toxic chemicals into tributaries of the Hudson River.
— NY AG James (@NewYorkStateAG) April 30, 2021
As a result of their illegal actions, we recovered $850,000 and we're forcing Holcim to take measures to prevent any future environmental harm.https://t.co/pE6xAdvwcn
