Tamp

Research has shown that traditional media serves a monitoring function when it comes to corporate ethics. For example, when a local newspaper closes, incidences of misconduct in area businesses tend to rise. A new study finds that social media can help tamp down wrongdoing as well.

The researchers used digital maps and media reports to pinpoint the introduction of 3G networks in various zip codes across the United States. They gathered data on facility-level violations and penalties from Violation Tracker for the years 2000 to 2017, identifying 11,508 violations by 10,590 facilities of 1,360 public companies. This allowed them to calculate the number of violations and the amount of resulting penalties in the three years before and the three years after 3G’s arrival. Access to the faster technology decreased violations by nearly 2% and penalties by nearly 13%.