Session 3 | Institutional investors and family firms on social issues

The 2025 IESE-ECGI Corporate Governance Conference was held on March 31, 2025, at IESE Business School’s Madrid campus, co-hosted by IESE and ECGI.

Session 3, "Institutional Investors and Family Firms on Social Issues," explored stakeholder responses to corporate diversity, equity, and inclusion (DEI) controversies. Moderated by Núria Mas (IESE Business School), the session featured Luc Renneboog (Tilburg University and ECGI), who presented empirical findings from over 5,000 U.S. DEI-related litigation events, revealing limited reaction from shareholders, bondholders, suppliers, and governments. However, high-skilled employees—especially female innovators—showed notable attrition, and short-term consumer backlash suggested reputational sensitivity. Pascual Berrone (IESE Business School) offered commentary emphasizing the importance of stakeholder salience and the interplay between normative and instrumental motivations in shaping corporate responses.

Click to access the presentation slides from the speaker and the discussant.