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Supply-Chain Sustainability Benefits Investors, Study Finds

The focus on environmental, social and governance practices is expanding to companies’ supply chains—and with good reason. Not only does responsible sourcing and greater disclosure of supply-chain risks benefit society, such practices can benefit shareholders, too.

Information on ESG-related issues along supply chains has been hard to come by and difficult to collect. I teamed up with Xuanpu Lin and Guoman She of the University of Hong Kong Business School and Haoran Zhu of China’s Southern University of Science and Technology to create a data set that would allow us to examine what it means for shareholders when a company embraces ethical sourcing.

Read more from The Wall Street Journal.

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