Opioid abuse and corporate social responsibility

This study examines the effect of adopting restrictive opioid prescribing laws (i.e., opioid laws) on corporate social responsibility (CSR) performance. Using the staggered adoption of opioid laws by US states, we find that the adoption of opioid laws leads to higher CSR performance. Moreover, the positive impact of opioid laws on firms' CSR performance is more pronounced in states with stronger enforcement of opioid laws. Given the impacts of opioid abuse in the US, our findings should be of great interest to investors, directors, managers, and public policy makers.

Automated summary

This study examines the impact of adopting restrictive opioid prescribing laws on corporate social responsibility performance. The results show that the adoption of these laws leads to higher CSR performance among firms, especially in states with stronger enforcement. Given the significance of opioid abuse in the US, these findings are important for investors, directors, managers, and policymakers.