Talent Loss Proves Costly to Businesses Following Corporate Wrongdoing

Cornell Chronicle's "Talent Loss Proves Costly to Businesses Following Corporate Wrongdoing" features the latest research from Forrest Briscoe, who holds the Maurice and Hinda Neufeld Founders Professorship in Industrial and Labor Relations in the ILR School. Studies show that corporate stakeholder violations, including fraud and environmental harm, significantly increase employee turnover. Departures are higher when sanctions are broad, frequent, or unprecedented, and affected employees tend to move to firms with stronger ethical records. The findings show that talent losses impose substantial economic costs beyond legal penalties and reputational damage.