ESG - Costello / en The mindset shift that will move you from “manager” to “leader” /news/2026-04/mindset-shift-will-move-you-manager-leader <span>The mindset shift that will move you from “manager” to “leader”</span> <span><span>Katelynn C Hipolito</span></span> <span><time datetime="2026-04-29T13:55:07-04:00" title="Wednesday, April 29, 2026 - 13:55">Wed, 04/29/2026 - 13:55</time> </span> <div class="layout layout--gmu layout--twocol-section layout--twocol-section--70-30"> <div class="layout__region region-first"> <div data-block-plugin-id="field_block:node:news_release:body" class="block block-layout-builder block-field-blocknodenews-releasebody"> <div class="field field--name-body field--type-text-with-summary field--label-visually_hidden"> <div class="field__label visually-hidden">Body</div> <div class="field__item"><p><span class="intro-text" lang="EN-SG">Most managers are promoted because of their good </span><em><span class="intro-text" lang="EN-SG">individual </span></em><span class="intro-text" lang="EN-SG">performance. Such a mindset—that one’s </span><em><span class="intro-text" lang="EN-SG">own&nbsp;</span></em><span class="intro-text" lang="EN-SG">performance is the most important—is devilishly difficult to change, however, and employees suffer.&nbsp;</span></p> <figure role="group" class="align-right"> <div> <div class="field field--name-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/medium/public/2026-05/kevin_rockmann.png?itok=MzeNYVM5" width="560" height="560" loading="lazy"> </div> </div> <figcaption>Kevin Rockmann. Photo by Jeffrey Porovich/Costello College of Business.</figcaption> </figure> <p><span lang="EN-SG">“It’s a hard lesson to learn, but the job of the manager actually is to help </span><em><span lang="EN-SG">others&nbsp;</span></em><span lang="EN-SG">do their job: Select them, guide them, help them, train them, but ultimately let </span><em><span lang="EN-SG">them </span></em><span lang="EN-SG">thrive and achieve. Not easy for someone who has reached the pinnacle by doing things themselves,” says </span><a href="https://business.gmu.edu/profiles/krockman" title="Kevin Rockmann"><span lang="EN-SG">Kevin Rockmann</span></a><span lang="EN-SG">, assistant dean for research, professor of management, and the CGI Corporate Partner Faculty Fellow at </span><a href="https://business.gmu.edu/" title="Costello College of Business | 91"><span lang="EN-SG">Costello College of Business</span></a><span lang="EN-SG"> at 91.</span></p> <p><span lang="EN-SG">Rockmann’s research focuses on the brighter side of employee relationships—bonds that, without crossing any lines of propriety, promote trust and mutually beneficial collaborations. It is both common knowledge and common sense that organizations that </span><a href="https://hbr.org/2022/06/the-power-of-healthy-relationships-at-work" target="_blank" title="Learn more"><span lang="EN-SG">prioritize such relationships</span></a><span lang="EN-SG"> benefit from greater employee engagement, higher retention, and enhanced productivity, among other positive effects.</span></p> <p><span lang="EN-SG">No wonder business leaders wax rhapsodic about the importance of healthy working relationships between managers and employees. But </span><a href="https://business.gmu.edu/news/2023-09/whats-worse-toxic-workplace-one-gaslights-employees" title="Learn more"><span lang="EN-SG">Rockmann's research</span></a><span lang="EN-SG"> shows that in most cases, such talk exists in inverse proportion to the amount of attention managers actually devote to relationships and relationship dynamics. In the battle for managerial bandwidth, relationships routinely lose out to more immediate bottom-line issues (e.g., whether the "work" is getting done).&nbsp;</span></p> <blockquote><p><span lang="EN-SG">“It’s a hard lesson to learn, but the job of the manager actually is to help </span><em><span lang="EN-SG">others&nbsp;</span></em><span lang="EN-SG">do their job: Select them, guide them, help them, train them, but ultimately let </span><em><span lang="EN-SG">them&nbsp;</span></em><span lang="EN-SG">thrive and achieve. Not easy for someone who has reached the pinnacle by doing things themselves.”&nbsp;</span></p> <p><span lang="EN-SG"><strong>— Kevin Rockmann, assistant dean for research, professor of management, and the CGI Corporate Partner Faculty Fellow at Costello College of Business at 91</strong></span></p> </blockquote> <p><span lang="EN-SG">“Most of what bosses say about their ‘collaborative’ and ‘close-knit’ corporate culture is a form of gaslighting. And employees know it, which serves only to alienate them. That’s a major reason why disenchantment and disengagement are running rampant in today’s organizations,” Rockmann says.</span></p> <p><span lang="EN-SG">In a recent executive development training involving a national fast-casual dining chain, Rockmann and his team took steps to address this. Participants were assigned to focus on the relational aspects of their job, intervene where necessary and document their results. Such outcomes not only were inspiring but also translate easily to any organization. “Giving systematic attention to relationships not only improved the interpersonal atmosphere in their units but also helped them personally and professionally in four main ways,” Rockmann says.&nbsp;</span></p> <p><span lang="EN-SG">#<strong>1 Deeper, higher-level conversations.</strong> As Rockmann tells it, concentrating on relationships changed the nature of the participants’ conversations at work. “Instead of seeing things purely from their own individual point of view, they gained a more all-around perspective based on the input of others,” he says. Managers asked first for thoughts and ideas regarding problem areas rather than punishing or criticizing. This elevated their awareness from a limited focus on what most directly affected them to a broader mindset encompassing more of their context and environment.</span></p> <p><span lang="EN-SG"><strong>#2 Less reactive decision-making.</strong> Relational attention separated stimulus from response, leading to less reactionary and more thoughtful responses during meetings and email exchanges. One regional manager was able to do this consistently with his people and found himself “not as angry” and that his people were taking greater ownership over their actions. As a result, decision-making became less knee-jerk, more deliberate, and ultimately more effective from a strategic standpoint.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</span></p> <p><span lang="EN-SG"><strong>#3 Reinventing restrictive roles.</strong> The new orientation enabled participants to engage in more intentional “relational job crafting,” whereby they began to embrace unprecedented partnerships and collaborations. One of the participants in HR connected with another in IT during the program and started to plan out trainings they could build together. Being together in a learning environment created possibilities for these types of solutions, simply by virtue of paying attention to interdependencies between individuals and teams.</span></p> <p><span lang="EN-SG"><strong>#4 Escaping middle-manager entrapment.</strong> The participants were able to escape the trap that ensnares many a middle manager and prevents them from rising—namely, getting stuck playing caretaker or being the “answer man” for their teams. For example, one participant noted that her tendency was to solve problems right away, especially for other people. By relaxing this she was able to empower others in her team and grow </span><em><span lang="EN-SG">their&nbsp;</span></em><span lang="EN-SG">confidence. Forced to look outward and focus on how their teams were relating, they readily identified trusted and reliable team members who were natural candidates for greater responsibility. “This removed the sense of risk that often prevents managers from delegating day-to-day and, by extension, keeps them putting out fires instead of aiming higher. They moved from saying ‘fix things this way’ to asking ‘what do </span><em><span lang="EN-SG">you&nbsp;</span></em><span lang="EN-SG">think is the best way to address this issue?’, Rockmann says.</span></p> <p><span lang="EN-SG">While these individuals in the exercise were in the food industry, Rockmann believes the leadership lessons to be learned here are universal.</span></p> <p><span lang="EN-SG">Rockmann notes: “When managers take the focus off themselves and their own achievements so that they can pay close attention to others, they effectively step off the stage and enter the balcony. They remove themselves from the play and can see better what is going on around them. They become attuned and responsive to the complex relational environment and can confidently coach their people through it, ultimately bringing themselves, their teams, and their organization more success.”</span></p> </div> </div> </div> <div data-block-plugin-id="field_block:node:news_release:field_content_topics" class="block block-layout-builder block-field-blocknodenews-releasefield-content-topics"> <h2>Topics</h2> <div class="field field--name-field-content-topics field--type-entity-reference field--label-visually_hidden"> <div class="field__label visually-hidden">Topics</div> <div class="field__items"> <div class="field__item"><a href="/taxonomy/term/20986" hreflang="en">Costello Research Careers</a></div> <div class="field__item"><a href="/taxonomy/term/20896" hreflang="en">Costello Research Teams</a></div> <div class="field__item"><a href="/taxonomy/term/20966" hreflang="en">Costello Research Evaluating Performance</a></div> <div class="field__item"><a href="/taxonomy/term/21021" hreflang="en">ESG - Costello</a></div> <div class="field__item"><a href="/taxonomy/term/12501" hreflang="en">Costello College of Business News</a></div> <div class="field__item"><a href="/taxonomy/term/13796" hreflang="en">Costello College of Business Faculty Research</a></div> <div class="field__item"><a href="/taxonomy/term/13106" hreflang="en">Management Faculty Research</a></div> <div class="field__item"><a href="/taxonomy/term/21828" hreflang="en">Future of Work and Leadership - Costello</a></div> <div class="field__item"><a href="/taxonomy/term/271" hreflang="en">Research</a></div> </div> </div> </div> </div> <div class="layout__region region-second"> <div data-block-plugin-id="field_block:node:news_release:field_associated_people" class="block block-layout-builder block-field-blocknodenews-releasefield-associated-people"> <h2>In This Story</h2> <div class="field field--name-field-associated-people field--type-entity-reference field--label-visually_hidden"> <div class="field__label visually-hidden">People Mentioned in This Story</div> <div class="field__items"> <div class="field__item"><a href="/profiles/krockman" hreflang="en">Kevin Rockmann</a></div> </div> </div> </div> <div data-block-plugin-id="inline_block:call_to_action" data-inline-block-uuid="a1601d53-95b8-4c72-825f-d9f064483a78"> <div class="cta"> <a class="cta__link" href="https://business.gmu.edu/"> <p class="cta__title">Explore the Costello College of Business <i class="fas fa-arrow-circle-right"></i> </p> <span class="cta__icon"></span> </a> </div> </div> <div data-block-plugin-id="inline_block:call_to_action" data-inline-block-uuid="311ac8eb-bd44-4d5a-8b6c-e126b0b63f29"> <div class="cta"> <a class="cta__link" href="https://gmu.edu/research"> <p class="cta__title">Learn more about Research at George Mason <i class="fas fa-arrow-circle-right"></i> </p> <span class="cta__icon"></span> </a> </div> </div> <div data-block-plugin-id="inline_block:text" data-inline-block-uuid="98424cfc-b7da-4c30-8100-48df0d321781" class="block block-layout-builder block-inline-blocktext"> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>&nbsp;</p> <hr> </div> </div> <div data-block-plugin-id="inline_block:news_list" data-inline-block-uuid="38366d4a-0204-4571-9b72-50f143ecbab1" class="block block-layout-builder block-inline-blocknews-list"> <h2>Related Stories</h2> <div class="views-element-container"><div class="view view-news view-id-news view-display-id-block_1 js-view-dom-id-ed56413bd01b086b8ad1d295edb1248104b19f268304615fcf58feb4334eba48"> <div class="view-content"> <div class="news-list-wrapper"> <ul class="news-list"> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/george-mason-and-us-air-force-partner-rapidly-field-emerging-capabilities" hreflang="en">George Mason and U.S. Air Force partner to rapidly field emerging capabilities </a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 18, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/power-showing-how-honors-college-student-built-career-seizing-every-opportunity" hreflang="en">The power of showing up: How this Honors College student built a career by seizing every opportunity </a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 12, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/wrap-april-30-bov-meeting" hreflang="en">Wrap up for April 30 BOV meeting </a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 11, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/costello-senior-good-business-win-win" hreflang="en">For this Costello senior, good business is a win-win</a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 7, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2025-11/senior-year-works-create-opportunities-all" hreflang="en">Senior of the Year works to create opportunities for all </a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 7, 2026</div></div></li> </ul> </div> </div> </div> </div> </div> </div> </div> Wed, 29 Apr 2026 17:55:07 +0000 Katelynn C Hipolito 345851 at Can machine learning make the world a fairer place? /news/2026-04/can-machine-learning-make-world-fairer-place <span>Can machine learning make the world a fairer place?</span> <span><span>Katelynn C Hipolito</span></span> <span><time datetime="2026-04-22T11:08:00-04:00" title="Wednesday, April 22, 2026 - 11:08">Wed, 04/22/2026 - 11:08</time> </span> <div class="layout layout--gmu layout--twocol-section layout--twocol-section--70-30"> <div class="layout__region region-first"> <div data-block-plugin-id="field_block:node:news_release:body" class="block block-layout-builder block-field-blocknodenews-releasebody"> <div class="field field--name-body field--type-text-with-summary field--label-visually_hidden"> <div class="field__label visually-hidden">Body</div> <div class="field__item"><p><span class="intro-text">A paradox hovers over our increasingly AI-dependent world. On the one hand, artificial intelligence can make the world a better place (or so we’re told). On the other hand, algorithms have no imagination or consciousness, and thus can know only the status quo—as reflected in the data they are trained on. And our current world is far from perfectly meritocratic or fair.</span></p> <figure role="group" class="align-right"> <div> <div class="field field--name-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/small_content_image/public/2026-05/jingyuan_yang.png?itok=qMFqZkKP" width="350" height="350" loading="lazy"> </div> </div> <figcaption><em>Jingyuan Yang. Photo by Jeffrey Porovich/Costello College of Business.</em></figcaption> </figure> <p><a href="https://business.gmu.edu/profiles/jyang53" title="Jingyuan Yang">Jingyuan Yang</a>, assistant professor of information systems and operations management at <a href="https://business.gmu.edu/" title="Costello College of Business | 91">Costello College of Business</a> at 91, suggests that the paradox is compounded by conventional thinking around AI. “The standard view is that fairness is a tax on efficiency. The way conventional systems are structured, fairness checks are added almost as an afterthought that is assumed to negatively impact system performance,” she says.</p> <p>Is the “better,” optimized world of AI destined to replicate, or perhaps even exacerbate, existing inequalities? Yang’s ongoing research—in collaboration with Pengzhan Guo of Duke Kunshan University and Keli Xiao of Stony Brook University—points to an appealing alternative. It uses AI systems as a proving ground for a theorized “fairness-performance complementarity”—the idea that, under certain conditions, fairness and performance reinforce one another.</p> <p>“Our 'fairness-by-design’ framework utilizes reinforcement learning, which is a type of machine learning (ML). But unlike most machine learning algorithms, ours includes multiple agents competing for finite resources in a dynamic environment, not a static one,” Yang says. “That makes our paradigm much more structurally similar to many real-world environments in which various people compete over time for finite resources.”</p> <p>Fairness was integrated in two stages. First, the framework was designed to “nudge” high-performing agents towards exploratory choices that might maximize their rewards. As Yang explains, “In this framework, high-performing agents are held in an exploratory mode for longer, while lower-performing agents settle into stable paths sooner.” Second, options that were abandoned as a result of agents’ reward-seeking behavior were redistributed, with lower-performing agents getting first crack at the best opportunities.&nbsp;</p> <p>As Yang summarizes, "The exploratory activity of the high performers releases opportunities that the system channels down toward the weaker performers. Theoretically, this increases fairness while retaining individual choice and without constraining performance.”</p> <blockquote><p>“Our ‘fairness-by-design’ framework utilizes reinforcement learning, which is a type of machine learning (ML). But unlike most machine learning algorithms, ours includes multiple agents competing for finite resources in a dynamic environment, not a static one. That makes our paradigm much more structurally similar to many real-world environments in which various people compete over time for finite resources.”</p> <p><strong>—Jingyuan Yang, assistant professor of information systems and operations management at Costello College of Business at 91</strong></p> </blockquote> <p>To test out the framework, the researchers used a data-set comprising detailed information on the job histories of 6.5 million professionals across a 20-year timeframe. “In the real-world data, we see a high degree of disparity, without very much redistribution of elite opportunities from relatively advantaged to disadvantaged employees,” Yang says.</p> <p>The algorithm converted the real-world job information into opportunities offered to hypothetical agents. The resulting career paths were analyzed in terms of both performance and fairness. Performance was defined by aggregate rewards earned by all agents across all periods. Fairness was defined by the degree to which initial performance disparities were resolved over successive decisions.</p> <p>The “fairness-by-design” framework’s results—for both fairness and performance—were better than those of eight alternative ML methods drawn from three different methodological families.</p> <p>The researchers also adjusted the system to account for people’s changing preferences. Early-career professionals tend to value employer reputation and advancement potential; in late career, rewards pertaining to job stability and security are more salient. Even with these restrictions implemented, the framework functioned as intended—improving the average quality of overall career paths while fueling upward mobility.</p> <p>In a follow-up study utilizing the <a href="https://www.nyc.gov/site/tlc/about/tlc-trip-record-data.page" target="_blank" title="Learn more">New York Yellow Taxi Trip record database</a>, the framework was tasked with generating route recommendations to hypothetical “agents,” i.e. cab drivers, with varying performance records. In this domain, the choice-set was much smaller (263 locations, as compared to 4,282 companies), and the timeframe far shorter (two hours as opposed to 20 years). As with the career-planning example, the taxi study found that more equitable distribution of high-quality routes led to higher average income per minute for the system as a whole.</p> <p>“Because the framework proved adaptable to different domains and agent preferences, we think it could be used in future as a governance mechanism for a variety of AI contexts,” Yang says. Health care scheduling, course registration in higher education and provision of digital services are a few areas Yang sees as likely candidates.</p> <p>While emphasizing that her research is still ongoing, she argues that it poses a serious challenge to standard ways of thinking about AI. “<span lang="EN-SG">Our formal proof establishes the conditions under which fairness and performance reinforce each other, and our experiments show those conditions are achievable in realistic settings. That gives our work both theoretical and experimental grounding,"&nbsp;</span>Yang says.<span lang="EN-SG"></span></p> </div> </div> </div> </div> <div class="layout__region region-second"> <div data-block-plugin-id="inline_block:call_to_action" data-inline-block-uuid="97de841e-da6e-4d59-92e9-19d6ac2ef568"> <div class="cta"> <a class="cta__link" href="/research/AI"> <p class="cta__title">Learn more about AI at George Mason <i class="fas fa-arrow-circle-right"></i> </p> <span class="cta__icon"></span> </a> </div> </div> <div data-block-plugin-id="inline_block:call_to_action" data-inline-block-uuid="3592a120-acdd-46c5-bf1c-8342c315d4aa"> <div class="cta"> <a class="cta__link" href="/research"> <p class="cta__title">Dive into Research at George Mason <i class="fas fa-arrow-circle-right"></i> </p> <span class="cta__icon"></span> </a> </div> </div> <div data-block-plugin-id="inline_block:text" data-inline-block-uuid="0a076ec8-092f-4ce6-97ff-409336f12932" class="block block-layout-builder block-inline-blocktext"> <div class="field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>&nbsp;</p> <hr> </div> </div> <div data-block-plugin-id="inline_block:news_list" data-inline-block-uuid="c766223e-1931-4797-bf0e-813e2a9eea03" class="block block-layout-builder block-inline-blocknews-list"> <h2>Related Stories</h2> <div class="views-element-container"><div class="view view-news view-id-news view-display-id-block_1 js-view-dom-id-a25de6d9a714eb19555b7c36682292508a66c24868e4843bcf70036cb71e08b5"> <div class="view-content"> <div class="news-list-wrapper"> <ul class="news-list"> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-06/nsf-career-award-will-support-teen-autonomy-age-ai" hreflang="en">NSF CAREER award will support teen autonomy in age of AI</a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">June 9, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-06/why-did-ai-agent-cross-road" hreflang="en">Why did the AI agent cross the road? 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Business leaders hope that by being seen </span><span class="TextRun SCXW148566210 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-US">to put</span><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US"> ethical responsibilities over profits, they will reap profits anyway as a byproduct of reputational gains. It stands to reason, then, that no conversation about the “business case” for ESG would be complete without involving society’s chief reputational brokers—i.e. the media.</span><span class="EOP SCXW148566210 BCX0">&nbsp;</span></p> <figure role="group" class="align-right"> <div> <div class="field field--name-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/medium/public/2022-04/saurabh-mishra.jpg?itok=hFtbD1YE" width="350" height="440" loading="lazy"> </div> </div> <figcaption>Saurabh Mishra. Photo by 91.</figcaption> </figure> <p class="Paragraph SCXW148566210 BCX0"><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-SG">New published research from </span><a href="https://business.gmu.edu/profiles/smishra8" title="Saurabh Mishra Profile"><span class="TextRun Underlined SCXW148566210 BCX0 NormalTextRun" lang="EN-US">Saurabh Mishra</span></a><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">, area chair and professor of marketing at the </span><a href="https://business.gmu.edu/"><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">Costello College of Business</span></a><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US"> at 91, confirms the media’s pivotal role in influencing ESG profitability.</span><span class="EOP SCXW148566210 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW148566210 BCX0"><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">Forthcoming in the </span><em><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">Journal of Business Research</span></em><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">, the paper was co-authored by Shekhar Misra at University of Galway, Ireland.</span><span class="EOP SCXW148566210 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW148566210 BCX0"><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">The researchers analyzed ESG performance from the Sustainalytics database, media sentiment from the </span><span class="TextRun SCXW148566210 BCX0 NormalTextRun SpellingErrorV2Themed" lang="EN-US">RavenPack</span><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US"> news analytics database, and financial data (including advertising budgets) for 452 firms over the period 2009-2018.&nbsp;</span><span class="EOP SCXW148566210 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW148566210 BCX0"><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">This </span><span class="TextRun SCXW148566210 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-US">data-set</span><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US"> allowed them to chart the triangular path by which “doing good” (for society and the planet) resulted in “doing well” for the firms in question.&nbsp;</span><span class="EOP SCXW148566210 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW148566210 BCX0"><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">To start with, only the “E” in ESG had any direct positive impact on financial performance—and a muted one at that. Of the three metrics examined—idiosyncratic risk, abnormal returns and Tobin’s Q—only idiosyncratic risk responded favorably to raw, unmediated environmental performance.</span><span class="EOP SCXW148566210 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW148566210 BCX0"><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">The “S” and “G” had either no direct positive effect, or a negative effect upon financial performance.</span><span class="EOP SCXW148566210 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW148566210 BCX0"><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">“You can imagine the E, S, and G would not have the same effect on all stakeholders,” Mishra observes. “Governance, being a little more internal, might have </span><span class="TextRun SCXW148566210 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-US">more</span><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US"> positive impact on employees, but not necessarily on the outside world. Social kind of falls in the middle—it could be either internal or external.”</span><span class="EOP SCXW148566210 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW148566210 BCX0"><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">With media sentiment, there was a similar disparity. “Greening” efforts tended to drive more positive media coverage for the firm, which translated into higher financial performance. Social and governance initiatives made no significant difference to </span><span class="TextRun SCXW148566210 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-US">the media</span><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US"> conversation.</span><span class="EOP SCXW148566210 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW148566210 BCX0"><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">But not all eco-conscious firms benefited equally from this media-made halo effect. Those that spent more money on advertising—not necessarily promoting their ESG activity, but advertising in general—saw a greater improvement in media sentiment.</span><span class="EOP SCXW148566210 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW148566210 BCX0"><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">Crucially, Mishra’s </span><span class="TextRun SCXW148566210 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-US">data-set</span><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US"> included neither specific examples of media coverage nor information about the recipients of advertising spend. The research, therefore, does not suggest the presence of an ethically problematic quid pro quo.</span><span class="EOP SCXW148566210 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW148566210 BCX0"><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">“It’s possible that </span><span class="TextRun SCXW148566210 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-US">media</span><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US"> simply follow firms [with high advertising budgets] more closely,” Mishra says. “They recognize their efforts more. Everything they do becomes more visible, which kind of magnifies the effect that we’re seeing.”</span><span class="EOP SCXW148566210 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW148566210 BCX0"><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">For Mishra, the findings help clarify contradictions about ESG and its potential payoffs. “If you look at some of the meta-analyses that have been done, the consensus is that ESG’s effect on shareholder wealth is not there, or it’s weakly positive. At the same time, there is a lot of variation. Some firms see a lot of </span><span class="TextRun SCXW148566210 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-US">upside</span><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US"> and some don’t.”&nbsp;</span><span class="EOP SCXW148566210 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW148566210 BCX0"><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">It’s not, then, that there isn’t a good “business case” for ESG activity. But that case may be more contingent on external factors (such as media sentiment) than many previous researchers believed.</span><span class="EOP SCXW148566210 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW148566210 BCX0"><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">If so, ESG may be most financially successful as part of a diverse strategic portfolio that could encompass advertising </span><span class="TextRun SCXW148566210 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-US">spend</span><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US"> and possibly other areas ostensibly unrelated to environmental sustainability.</span><span class="EOP SCXW148566210 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW148566210 BCX0"><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">“Advertising researchers talk about </span><span class="TextRun SCXW148566210 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-US">a stock effect</span><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">,” Mishra explains. “Advertising stock builds over </span><span class="TextRun SCXW148566210 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-US">time</span><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">. You have to continually advertise, otherwise that stock </span><span class="TextRun SCXW148566210 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-US">starts</span><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US"> going down. </span><span class="TextRun SCXW148566210 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-US">So</span><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US"> if you’re advertising substantially, you get more bang for the buck from investing in the environment.”</span><span class="EOP SCXW148566210 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW148566210 BCX0"><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">But because so much remains unknown about the various factors that help determine ESG’s profitability potential, Mishra cautions against dismissing the “S” and “G” too quickly, despite their apparent irrelevance in this </span><span class="TextRun SCXW148566210 BCX0 NormalTextRun AdvancedProofingIssueV2Themed" lang="EN-US">particular study</span><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">.</span><span class="EOP SCXW148566210 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW148566210 BCX0"><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">“I would hate to say that firms should not invest in social and governance,” Mishra says. “Maybe if you look at some other stakeholder measures—employee productivity measures, for instance—they move the needle there. Because, after all, there is variation in the data, and no one paper can look at every relevant factor. But if your objective is to move media to be more positive towards you, environmental focus is your best bet.”</span><span class="EOP SCXW148566210 BCX0">&nbsp;</span></p> <blockquote><p class="Paragraph SCXW148566210 BCX0"><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US">“I would hate to say that firms should not invest in social and governance. Maybe if you look at some other stakeholder measures—employee productivity measures, for instance—they move the needle there. Because, after all, there is variation in the data, and no one paper can look at every relevant factor. But if your objective is to move media to be more positive towards you, environmental focus is your best bet.”</span><span class="EOP SCXW148566210 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW148566210 BCX0"><span class="EOP SCXW148566210 BCX0"><strong>— </strong></span><span class="TextRun Underlined SCXW148566210 BCX0 NormalTextRun" lang="EN-US"><strong>Saurabh Mishra</strong></span><span class="TextRun SCXW148566210 BCX0 NormalTextRun" lang="EN-US"><strong>, area chair and professor of marketing at the Costello College of Business at 91</strong></span></p> </blockquote> </div> </div> </div> </div> <div class="layout__region region-second"> <div data-block-plugin-id="field_block:node:news_release:field_associated_people" class="block block-layout-builder block-field-blocknodenews-releasefield-associated-people"> <h2>In This Story</h2> <div class="field field--name-field-associated-people field--type-entity-reference field--label-visually_hidden"> <div class="field__label visually-hidden">People Mentioned in This Story</div> <div class="field__items"> <div class="field__item"><a href="/profiles/smishra8" hreflang="en">Saurabh Mishra</a></div> </div> </div> </div> <div data-block-plugin-id="field_block:node:news_release:field_content_topics" class="block block-layout-builder block-field-blocknodenews-releasefield-content-topics"> <h2>Topics</h2> <div class="field field--name-field-content-topics field--type-entity-reference field--label-visually_hidden"> <div class="field__label visually-hidden">Topics</div> <div class="field__items"> <div class="field__item"><a href="/taxonomy/term/21031" hreflang="en">Marketing - Costello</a></div> <div class="field__item"><a href="/taxonomy/term/21101" hreflang="en">Costello Research Brand Management</a></div> <div class="field__item"><a href="/taxonomy/term/21111" hreflang="en">Costello Research Social Influence</a></div> <div class="field__item"><a href="/taxonomy/term/20931" hreflang="en">Costello Research Sustainable Operations</a></div> <div class="field__item"><a href="/taxonomy/term/21021" hreflang="en">ESG - Costello</a></div> <div class="field__item"><a href="/taxonomy/term/13796" hreflang="en">Costello College of Business Faculty Research</a></div> <div class="field__item"><a href="/taxonomy/term/12501" hreflang="en">Costello College of Business News</a></div> </div> </div> </div> </div> </div> Tue, 18 Nov 2025 14:42:57 +0000 Katelynn C Hipolito 344831 at The hidden cost of environmental policy uncertainty /news/2025-10/hidden-cost-environmental-policy-uncertainty <span>The hidden cost of environmental policy uncertainty</span> <span><span>Katelynn C Hipolito</span></span> <span><time datetime="2025-10-21T11:30:50-04:00" title="Tuesday, October 21, 2025 - 11:30">Tue, 10/21/2025 - 11:30</time> </span> <div class="layout layout--gmu layout--twocol-section layout--twocol-section--70-30"> <div class="layout__region region-first"> <div data-block-plugin-id="field_block:node:news_release:body" class="block block-layout-builder block-field-blocknodenews-releasebody"> <div class="field field--name-body field--type-text-with-summary field--label-visually_hidden"> <div class="field__label visually-hidden">Body</div> <div class="field__item"><p><span class="TextRun SCXW225505042 BCX0 NormalTextRun intro-text" lang="EN-US">Air quality standards do more than reduce pollution for noncompliant counties; they increase the cost of funding public infrastructure like schools, hospitals, and roads.</span><span class="TextRun MacChromeBold SCXW225505042 BCX0 NormalTextRun intro-text" lang="EN-US"><strong>&nbsp;</strong></span></p> <p class="Paragraph SCXW213490995 BCX0"><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US">Air pollution regulations are meant to protect public health, but new evidence shows they also carry an unexpected cost: higher interest rates on the bonds counties issue to fund schools, hospitals, and infrastructure. When a county falls out of compliance with federal ozone standards, borrowing becomes expensive. The result is that the municipality faces higher costs to fund public infrastructure like schools, </span><span class="TextRun SCXW213490995 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-US">hospitals,</span><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US"> and roads.&nbsp;</span><span class="EOP SCXW213490995 BCX0">&nbsp;</span></p> <figure role="group" class="align-right"> <div> <div class="field field--name-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/small_content_image/public/2025-11/steve_karolyi_600x600.jpg?itok=CFXleDaj" width="350" height="350" loading="lazy"> </div> </div> <figcaption>Stephen A. Karolyi</figcaption> </figure> <p class="Paragraph SCXW213490995 BCX0"><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US">That is the central finding of a study published in </span><a class="Hyperlink SCXW213490995 BCX0" href="https://pubsonline.informs.org/doi/10.1287/mnsc.2023.02340" target="_blank"><em><span class="TextRun Underlined SCXW213490995 BCX0 NormalTextRun" lang="EN-US">Management Science</span></em></a><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US">, authored by </span><a href="https://business.gmu.edu/profiles/skarolyi" title="Learn more about Stephen A. Karolyi"><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US">Stephen A. Karolyi</span></a><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US">, a finance professor at </span><a href="https://business.gmu.edu/" title="Costello College of Business | 91"><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US">Costello College of Business</span></a><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US"> at 91, and co-authors Akshaya Jha and Nicholas Z. Muller of Carnegie Mellon University.</span><span class="EOP SCXW213490995 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW213490995 BCX0"><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US">The study focuses on how the municipal bond market responds to the Clean Air Act, which </span><span class="TextRun SCXW213490995 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-US">sets</span><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US"> thresholds for pollutants like ozone. The official term for exceeding the threshold for ozone pollution is “nonattainment.”&nbsp;</span><span class="EOP SCXW213490995 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW213490995 BCX0"><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US">“If your county is not compliant with this federal standard, then there are repercussions. You </span><span class="TextRun SCXW213490995 BCX0 NormalTextRun AdvancedProofingIssueV2Themed" lang="EN-US">have to</span><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US"> create a plan to get back in attainment,” explains Karolyi. Prior work has shown how these federal standards generate significant health benefits relative to these compliance costs.</span><span class="EOP SCXW213490995 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW213490995 BCX0"><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US">But for investors in municipal bonds, this raises two concerns: higher default risk due to strained county finances, and uncertainty about how regulations will evolve.&nbsp;</span><span class="EOP SCXW213490995 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW213490995 BCX0"><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US">The researchers focused on two critical types of announcements. First is when the EPA proposes and finalizes new ozone standards. Second is when the EPA releases its annual designations of which counties are in or out of attainment. Together, these announcements create information shocks that allow researchers to track how bond markets update their expectations. The team measured changes in municipal bond yields surrounding the two types of announcements, analyzing more than 140 million trades between 2005 and 2019.</span><span class="EOP SCXW213490995 BCX0">&nbsp;</span></p> <blockquote><p class="Paragraph SCXW213490995 BCX0"><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US">“Because municipal bond investors dislike uncertainty, one implication would be that policymakers should be concerned not only with the level of air quality standards, but also uncertainty over changes in air quality standards.”&nbsp;</span><br><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US">—</span><a href="https://business.gmu.edu/profiles/skarolyi" title="Learn more about Stephen A. Karolyi"><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US"><strong>Stephen A. Karolyi</strong></span></a><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US"><strong>, associate professor of finance</strong></span></p> </blockquote> <p class="Paragraph SCXW213490995 BCX0"><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US">The results reveal a consistent pattern. When new standards were proposed, yields rose by one to four percent, reflecting an increase in uncertainty perceived by investors. Once the final standard was announced, the estimated yields fell by about 0.5 to 1.3 percent, due to a corresponding decrease in uncertainty. When analyzing the annual compliance announcements, the authors found that counties that slipped into nonattainment experienced an increase in yields of nearly one percent, compared to counties that maintained their status or newly achieved attainment.&nbsp;</span><span class="EOP SCXW213490995 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW213490995 BCX0"><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US">“Being non-compliant means that you’ll have to create and execute abatement plans, which bondholders expect to be costly,” explains Karolyi. Those expectations push yields higher, which makes it more expensive for counties to fund public infrastructure projects and services, though the current study does not explore all possible channels that are impacted.</span><span class="EOP SCXW213490995 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW213490995 BCX0"><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US">The research shows that these expectations are well-founded. Karolyi explains, “When the bond market reacts more negatively to annual compliance announcements, we see larger decreases in house prices over the subsequent years. That’s consistent with the perceived cost of getting back into attainment. As a county, </span><span class="TextRun SCXW213490995 BCX0 NormalTextRun AdvancedProofingIssueV2Themed" lang="EN-US">in order to</span><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US"> get into attainment, one approach may be to restrict output, which may mean less employment and consequently a decrease in house prices.”&nbsp;</span><span class="EOP SCXW213490995 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW213490995 BCX0"><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US">The implications are wide-ranging. For policymakers and local leaders, the findings underscore that environmental regulations also have repercussions for public finance. For investors, the findings highlight how traditionally safe assets like municipal bonds are sensitive to environmental policy risk.</span><span class="EOP SCXW213490995 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW213490995 BCX0"><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US">Looking ahead, the researchers plan to extend their work to other areas where environmental rules intersect with local finance. Commercial real estate, for example, is an emerging area of interest as cities experiment with new sustainability requirements.</span><span class="EOP SCXW213490995 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW213490995 BCX0"><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US">By examining how financial markets respond to environmental regulation, the team hopes to shed light on the hidden economic tradeoffs and potential unintended consequences of well-intentioned policies. To be sure, prior work has documented that more stringent air </span><span class="TextRun SCXW213490995 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-US">quality standards</span><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US"> have generated billions of dollars in public health improvements. According to Karolyi, a key contribution </span><span class="TextRun SCXW213490995 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-US">of</span><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US"> this paper is to show that these benefits </span><span class="TextRun SCXW213490995 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-US">come about</span><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US"> in part due to investors anticipating the effects of standards and the costs of noncompliance.&nbsp;</span><span class="EOP SCXW213490995 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW213490995 BCX0"><span class="TextRun SCXW213490995 BCX0 NormalTextRun" lang="EN-US">“Because municipal bond investors dislike uncertainty, one implication would be that policymakers should be concerned not only with the level of air quality standards, but also uncertainty over changes in air quality standards,” Karolyi says.</span><span class="EOP SCXW213490995 BCX0">&nbsp;</span></p> </div> </div> </div> </div> <div class="layout__region region-second"> <div data-block-plugin-id="field_block:node:news_release:field_associated_people" class="block block-layout-builder block-field-blocknodenews-releasefield-associated-people"> <h2>In This Story</h2> <div class="field field--name-field-associated-people field--type-entity-reference field--label-visually_hidden"> <div class="field__label visually-hidden">People Mentioned in This Story</div> <div class="field__items"> <div class="field__item"><a href="/profiles/skarolyi" hreflang="en">Stephen A. Karolyi</a></div> </div> </div> </div> <div data-block-plugin-id="field_block:node:news_release:field_content_topics" class="block block-layout-builder block-field-blocknodenews-releasefield-content-topics"> <h2>Topics</h2> <div class="field field--name-field-content-topics field--type-entity-reference field--label-visually_hidden"> <div class="field__label visually-hidden">Topics</div> <div class="field__items"> <div class="field__item"><a href="/taxonomy/term/21011" hreflang="en">Finance - Costello</a></div> <div class="field__item"><a href="/taxonomy/term/13136" hreflang="en">Finance Faculty Research</a></div> <div class="field__item"><a href="/taxonomy/term/20956" hreflang="en">Costello Research Risk Management</a></div> <div class="field__item"><a href="/taxonomy/term/20961" hreflang="en">Costello Research Corporate Finance</a></div> <div class="field__item"><a href="/taxonomy/term/21021" hreflang="en">ESG - Costello</a></div> <div class="field__item"><a href="/taxonomy/term/12501" hreflang="en">Costello College of Business News</a></div> <div class="field__item"><a href="/taxonomy/term/13796" hreflang="en">Costello College of Business Faculty Research</a></div> </div> </div> </div> </div> </div> Tue, 21 Oct 2025 15:30:50 +0000 Katelynn C Hipolito 344131 at George Mason researcher is using AI to identify human trafficking hot spots /news/2025-09/george-mason-researcher-using-ai-identify-human-trafficking-hot-spots <span>George Mason researcher is using AI to identify human trafficking hot spots</span> <span><span>Katelynn C Hipolito</span></span> <span><time datetime="2025-09-29T14:20:46-04:00" title="Monday, September 29, 2025 - 14:20">Mon, 09/29/2025 - 14:20</time> </span> <div class="layout layout--gmu layout--twocol-section layout--twocol-section--70-30"> <div class="layout__region region-first"> <div data-block-plugin-id="field_block:node:news_release:body" class="block block-layout-builder block-field-blocknodenews-releasebody"> <div class="field field--name-body field--type-text-with-summary field--label-visually_hidden"> <div class="field__label visually-hidden">Body</div> <div class="field__item"><p class="Paragraph SCXW108219816 BCX0"><span class="TextRun SCXW108219816 BCX0 NormalTextRun intro-text" lang="EN-GB">Illicit massage businesses (IMBs) run by human trafficking rings are rampant in the United States. A 91 professor has helped build what may be the best artificial intelligence (AI)-driven tool to root them out.</span><span class="EOP SCXW108219816 BCX0 intro-text">&nbsp;</span></p> <p class="Paragraph SCXW108219816 BCX0"><strong><span class="TextRun MacChromeBold SCXW108219816 BCX0 NormalTextRun" lang="EN-GB"></span></strong></p> <p class="Paragraph SCXW108219816 BCX0"><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">Human trafficking rings are at their most dangerous when they masquerade as legitimate commercial activity. IMBs are one of the most common ways in which exploitive networks operate in plain sight.</span><span class="EOP SCXW108219816 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW108219816 BCX0"><span class="TextRun EmptyTextRun SCXW108219816 BCX0" lang="EN-SG"></span><a class="Hyperlink SCXW108219816 BCX0" href="https://www.thenetworkteam.org/research/what-is-the-illicit-massage-industry" target="_blank"><span class="TextRun Underlined SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">The Network</span></a><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">, an anti-trafficking nonprofit, estimates that there are more than 13,000 IMBs active in the United States, raking in annual total revenue of more than $5 billion.</span><span class="EOP SCXW108219816 BCX0">&nbsp;</span></p> <figure role="group" class="align-right"> <div> <div class="field field--name-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/small_content_image/public/2024-01/abhishek-ray-web.jpg?itok=Nd9mGQLZ" width="350" height="350" loading="lazy"> </div> </div> <figcaption>Abhishek Ray&nbsp;</figcaption> </figure> <p class="Paragraph SCXW108219816 BCX0"><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">“You are stuck in a massage business. You’re not allowed to go out,” says </span><a class="Hyperlink SCXW108219816 BCX0" href="https://business.gmu.edu/profiles/aray8" target="_blank"><span class="TextRun Underlined SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">Abhishek Ray</span></a><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">, assistant professor of information systems and operations management at the </span><a href="https://business.gmu.edu/" title="Costello College of Business | 91"><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">Donald G. Costello College of Business</span></a><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB"> at George Mason, describing the plight of IMB workers. “Your passports are taken </span><span class="TextRun SCXW108219816 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-GB">away,</span><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB"> and you’re supposed to do a certain amount of business every day and give the money to the trafficker. It’s </span><span class="TextRun SCXW108219816 BCX0 NormalTextRun AdvancedProofingIssueV2Themed" lang="EN-GB">a really abhorrent</span><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB"> form of abuse.”</span><span class="EOP SCXW108219816 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW108219816 BCX0"><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">Ray is one of a growing group of researchers exploring how various forms of AI could help resource-constrained law enforcement agencies differentiate between IMBs and the legitimate enterprises they try to mimic. His ongoing research using graph neural networks has yielded more promising results than rival approaches, when put to the test in a recent experiment.</span><span class="EOP SCXW108219816 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW108219816 BCX0"><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">His co-researchers on the IMB project are Lumina Albert and Swetha Varadarajan of Colorado State University.</span><span class="EOP SCXW108219816 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW108219816 BCX0"><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">According to Ray, “Graph neural networks are just a fancy way of saying that if I get a graph of a city or locality at one point in time, and I add data to it, can I predict future patterns on this graph if I know the past?”</span><span class="EOP SCXW108219816 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW108219816 BCX0"><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">This approach made sense for detecting IMBs, because try as they might to appear above board, they have geographical needs that conventional businesses don’t. “IMBs don’t allow their trafficked employees to go out of the </span><span class="TextRun SCXW108219816 BCX0 NormalTextRun SpellingErrorV2Themed" lang="EN-GB">parlor</span><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">,” Ray says. “But since they’re humans, they need sustenance. They </span><span class="TextRun SCXW108219816 BCX0 NormalTextRun AdvancedProofingIssueV2Themed" lang="EN-GB">have to</span><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB"> be near groceries, gas stations, where they can get stuff and come back.”</span><span class="EOP SCXW108219816 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW108219816 BCX0"><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">The researchers combined several graph neural networks into a framework called </span><span class="TextRun SCXW108219816 BCX0 NormalTextRun SpellingErrorV2Themed" lang="EN-GB">IMBWatch</span><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">. The training </span><span class="TextRun SCXW108219816 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-GB">data-set</span><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB"> for </span><span class="TextRun SCXW108219816 BCX0 NormalTextRun SpellingErrorV2Themed" lang="EN-GB">IMBWatch</span><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB"> comprised publicly available information such as online customer reviews, arrest and raid data for known IMBs, and advertisements from websites promoting illicit activities (e.g., the infamous Backpage). The result, in essence, was a series of snapshots mapping the evolution of the IMB network </span><span class="TextRun SCXW108219816 BCX0 NormalTextRun AdvancedProofingIssueV2Themed" lang="EN-GB">in a given</span><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB"> city or county over </span><span class="TextRun SCXW108219816 BCX0 NormalTextRun AdvancedProofingIssueV2Themed" lang="EN-GB">a period of time</span><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">. This could then be overlaid on geographical maps to tease out hidden patterns.</span><span class="EOP SCXW108219816 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW108219816 BCX0"><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">To gauge </span><span class="TextRun SCXW108219816 BCX0 NormalTextRun SpellingErrorV2Themed" lang="EN-GB">IMBWatch’s</span><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB"> relative performance, the researchers let it loose on a testing </span><span class="TextRun SCXW108219816 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-GB">data-set</span><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB"> alongside four other AI models, which were not as sensitive to the nuanced interplay of spatial and temporal factors. Of the five models, </span><span class="TextRun SCXW108219816 BCX0 NormalTextRun SpellingErrorV2Themed" lang="EN-GB">IMBWatch</span><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB"> provided the most accurate, precise and informative predictions. In other words, it outperformed the others at spotting IMBs among a larger mass of local businesses.</span><span class="EOP SCXW108219816 BCX0">&nbsp;</span></p> <blockquote><p class="Paragraph SCXW108219816 BCX0"><span class="EOP SCXW108219816 BCX0">“Graph neural networks are just a fancy way of saying that if I get a graph of a city or locality at one point in time, and I add data to it, can I predict future patterns on this graph if I know the past?”&nbsp;</span><br><span>—<strong> </strong></span><a class="Hyperlink SCXW108219816 BCX0" href="https://business.gmu.edu/profiles/aray8" target="_blank"><span class="EOP SCXW108219816 BCX0"><strong>Abhishek Ray</strong></span></a><span class="EOP SCXW108219816 BCX0"><strong>, assistant professor of information systems and operations management</strong></span></p> </blockquote> <p class="Paragraph SCXW108219816 BCX0"><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">While encouraging, these outcomes require further confirmation with a larger </span><span class="TextRun SCXW108219816 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-GB">data-set</span><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">. “</span><span class="TextRun SCXW108219816 BCX0 NormalTextRun SpellingErrorV2Themed" lang="EN-GB">IMBWatch</span><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB"> was trained on data from Georgia and Louisiana, not the entire United States,” Ray says. “These were small, manageable </span><span class="TextRun SCXW108219816 BCX0 NormalTextRun ContextualSpellingAndGrammarErrorV2Themed" lang="EN-GB">data-sets</span><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">, but we will now scale up to major states such as New York and California.”</span><span class="EOP SCXW108219816 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW108219816 BCX0"><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">The researchers are also looking at enhancing </span><span class="TextRun SCXW108219816 BCX0 NormalTextRun SpellingErrorV2Themed" lang="EN-GB">IMBWatch</span><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB"> with data related to how workers end up wandering into trafficking webs. These might include “proximity to hospitals, religious places, etc. because a lot of times people are coerced by religious compulsions, or because they’re pregnant and need some care,” Ray says.</span><span class="EOP SCXW108219816 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW108219816 BCX0"><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">This is not Ray’s first foray into the field of AI-</span><span class="TextRun SCXW108219816 BCX0 NormalTextRun SpellingErrorV2Themed" lang="EN-GB">fueled</span><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB"> anti-trafficking. Previously, Ray co-developed a model for </span><a class="Hyperlink SCXW108219816 BCX0" href="https://business.gmu.edu/news/2023-02/how-machine-learning-improvements-are-helping-fight-human-trafficking" target="_blank"><span class="TextRun Underlined SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">improving machine learning-based detection</span></a><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB"> of human trafficking activity at transit stations and on fishing vessels.</span><span class="EOP SCXW108219816 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW108219816 BCX0"><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">However, law enforcement agencies and other pertinent stakeholders (e.g., business owners) are often wary of adopting AI-based solutions, due to a lack of trust in the technology. Ray and his co-researchers are currently devising a framework that will clarify how these stakeholders can work together with tech experts and, perhaps most importantly, human trafficking survivors to make the best possible use of AI.&nbsp;</span><span class="EOP SCXW108219816 BCX0">&nbsp;</span></p> <p class="Paragraph SCXW108219816 BCX0"><span class="TextRun SCXW108219816 BCX0 NormalTextRun" lang="EN-GB">“This qualitative piece is required to make sure that people who are on the sidelines, on the fences about using this actually start using it, because that’s the need right now,” Ray says.</span><span class="EOP SCXW108219816 BCX0">&nbsp;</span></p> </div> </div> </div> </div> <div class="layout__region region-second"> <div data-block-plugin-id="inline_block:call_to_action" data-inline-block-uuid="a5f64386-e6cb-423d-adcb-9579107cc043"> <div class="cta"> <a class="cta__link" href="/AI"> <p class="cta__title">Learn more about Artificial Intelligence at George Mason <i class="fas fa-arrow-circle-right"></i> </p> <span class="cta__icon"></span> </a> </div> </div> <div data-block-plugin-id="inline_block:text" data-inline-block-uuid="11b26a03-4c0d-4bba-9fdc-8f8eee19f4c4" class="block block-layout-builder block-inline-blocktext"> </div> <div data-block-plugin-id="inline_block:news_list" data-inline-block-uuid="01d92369-e0fa-4f06-8408-6971eeaf9e77" class="block block-layout-builder block-inline-blocknews-list"> <h2>Related Stories</h2> <div class="views-element-container"><div class="view view-news view-id-news view-display-id-block_1 js-view-dom-id-a54702935372e8fb8d2cd067f66ea1d351c7c6f43e066d97ab84bd59f980c710"> <div class="view-content"> <div class="news-list-wrapper"> <ul class="news-list"> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-06/nsf-career-award-will-support-teen-autonomy-age-ai" hreflang="en">NSF CAREER award will support teen autonomy in age of AI</a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">June 9, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-06/why-did-ai-agent-cross-road" hreflang="en">Why did the AI agent cross the road? 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There’s a framework for that /news/2025-07/doing-well-doing-good-theres-framework <span>“Doing well by doing good?" There’s a framework for that </span> <span><span>Jennifer Anzaldi</span></span> <span><time datetime="2025-07-02T11:38:03-04:00" title="Wednesday, July 2, 2025 - 11:38">Wed, 07/02/2025 - 11:38</time> </span> <div class="layout layout--gmu layout--twocol-section layout--twocol-section--70-30"> <div class="layout__region region-first"> <div data-block-plugin-id="field_block:node:news_release:body" class="block block-layout-builder block-field-blocknodenews-releasebody"> <div class="field field--name-body field--type-text-with-summary field--label-visually_hidden"> <div class="field__label visually-hidden">Body</div> <div class="field__item"><p><span class="intro-text">Today’s customers don’t just buy products—they buy into what a company stands for. It is no longer just low prices or flashy marketing that target the latest trends. Stakeholders are asking harder questions: Does this company treat its workers fairly? Are they harming the environment?</span></p> <p>In a recent study published in the <a href="https://link.springer.com/article/10.1057/s41262-025-00392-1" target="_blank" title="Read the article"><em>Journal of Brand Management</em></a>, <a href="https://business.gmu.edu/profiles/rabratt" title="Russell Abratt">Russell Abratt</a>, a marketing professor at the Costello College of Business at 91, tackles a key strategic challenge: How companies can move beyond shallow social and environmental messaging to meaningfully shift consumer perceptions. Joining Abratt on this research team are co-authors Emmanuel Silva Quaye of University of Witwatersrand and Nicola Kleyn of University of Pretoria.</p> <figure role="group" class="align-right"> <div> <div class="field field--name-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/small_content_image/public/2025-07/rusell_abratt_350x350.jpg?itok=BYgljCZm" width="350" height="350" loading="lazy"> </div> </div> <figcaption>Russell Abratt</figcaption> </figure> <p>When a brand is described as being true to themselves, holding values of fairness, a concern for society, and an obligation to goodness, it becomes what they call a <em>conscientious corporate</em> <em>brand</em>. These are brands who are trusted to do the right thing consistently and authentically.</p> <p>But trust alone is not enough. Companies want to know: Does being conscientious also deliver better business outcomes?</p> <p>Building on their <a href="https://www.emerald.com/insight/content/doi/10.1108/jbim-10-2021-0468/full/html" target="_blank" title="Learn more">2023 work</a>, which introduced a framework for developing conscientious corporate brands, the research team now offers empirical evidence that this framework not only enhances brand trust but also leads to the response companies are hoping for—responsible branding can drive tangible value.</p> <p>“Firms in order to succeed these days really need to go beyond profits,” says Abratt. “You’ve got to be ethical in whatever you do. You’ve got to be socially aware. And you’ve also got to be very, very conscientious about what you are doing.”</p> <p>To further investigate Abratt’s 2023 framework and understand what changes stakeholder perceptions, the researchers conducted two experiments with South African participants. Each participant was shown a scenario involving a fictional construction company: the control group highlighted traditional business goals such as efficiency and profitability, and the experimental group emphasized ethical leadership, social impact, and environmental sustainability. The results were striking.</p> <p>“We saw very clearly the differences between the control group and the experimental group,” Abratt explains. Participants viewed the purpose-driven, socially engaged version of the company as significantly more conscientious, responsible, and authentic than the version focused purely on business efficiency.</p> <p>Their research identified four elements in a chronological sequence that contribute to conscientious corporate branding: organizational purpose, brand authenticity, corporate social responsibility (CSR), and ethical organizational culture. These are not separate strategies; they reinforce each other.</p> <blockquote><p>“Firms in order to succeed these days really need to go beyond profits,” says Abratt. “You’ve got to be ethical in whatever you do. You’ve got to be socially aware. And you’ve also got to be very, very conscientious about what you are doing.”<br><span><strong>— </strong></span><a href="https://business.gmu.edu/profiles/rabratt" title="Russell Abratt"><strong>Russell Abratt</strong></a><strong>, Instructional Professor, Marketing</strong></p> </blockquote> <p>The first element of this sequence is organizational purpose. A company must begin by defining why it exists beyond just profits. Next is authenticity. “Authenticity leads to trust,” says Abratt. “The more authentic that an organization is perceived to be, the more positive perceptions the stakeholders have.” The paper finds that authenticity acts as a bridge that connects an organization’s purpose to stakeholders’ perceptions of conscientious corporate branding.</p> <p>Next is the third element: corporate social responsibility. This must be integrated, not performative. “Developing a corporate social responsibility strategy should be part of the organization’s overall strategy,” says Abratt. “It should not be seen as greenwashing, as added on and fake.”</p> <p>Lastly, an ethical organizational culture is created by top leadership through example and prioritizing ethical values across the organization.</p> <p>According to Abratt, “In order for a firm to say this is our purpose beyond profits, they’ve got to have a top leadership that says these are our values. This is what we stand for. Then that needs to be typicalized throughout the organization.”</p> <p>So what does this mean for business leaders? It means that building a conscientious brand is no longer just a marketing strategy—it’s a business imperative. But the real challenge lies in making sure those sustainable actions resonate with consumers to ultimately result in success. Can companies do well by doing good?</p> <p>Looking ahead, Abratt and his colleagues hope to expand their research to other industries and other countries or regions to test whether their results are generalizable to other contexts.</p> <p>“Brands that have a purpose beyond profit are the ones that are going to be seen by stakeholders in a more positive light. And if they are seen in a more positive light, those stakeholders, especially customers, are likely to support that particular organization,” Abratt concludes.<br>&nbsp;</p> </div> </div> </div> </div> <div class="layout__region region-second"> <div data-block-plugin-id="field_block:node:news_release:field_associated_people" class="block block-layout-builder block-field-blocknodenews-releasefield-associated-people"> <h2>In This Story</h2> <div class="field field--name-field-associated-people field--type-entity-reference field--label-visually_hidden"> <div class="field__label visually-hidden">People Mentioned in This Story</div> <div class="field__items"> <div class="field__item"><a href="/profiles/rabratt" hreflang="en">Russell Abratt</a></div> </div> </div> </div> <div data-block-plugin-id="inline_block:text" data-inline-block-uuid="f21f0da0-5bd4-477c-81d3-7f7fba2d633d" class="block block-layout-builder block-inline-blocktext"> </div> <div data-block-plugin-id="field_block:node:news_release:field_content_topics" class="block block-layout-builder block-field-blocknodenews-releasefield-content-topics"> <h2>Topics</h2> <div class="field field--name-field-content-topics field--type-entity-reference field--label-visually_hidden"> <div class="field__label visually-hidden">Topics</div> <div class="field__items"> <div class="field__item"><a href="/taxonomy/term/21031" hreflang="en">Marketing - Costello</a></div> <div class="field__item"><a href="/taxonomy/term/21021" hreflang="en">ESG - Costello</a></div> <div class="field__item"><a href="/taxonomy/term/21101" hreflang="en">Costello Research Brand Management</a></div> <div class="field__item"><a href="/taxonomy/term/21121" hreflang="en">Costello Research Market Research</a></div> <div class="field__item"><a href="/taxonomy/term/20901" hreflang="en">Costello Research Managing Change</a></div> <div class="field__item"><a href="/taxonomy/term/20976" hreflang="en">Costello Research Competitive Strategy</a></div> <div class="field__item"><a href="/taxonomy/term/21046" hreflang="en">Costello Research Retail</a></div> <div class="field__item"><a href="/taxonomy/term/12501" hreflang="en">Costello College of Business News</a></div> <div class="field__item"><a href="/taxonomy/term/13796" hreflang="en">Costello College of Business Faculty Research</a></div> <div class="field__item"><a href="/taxonomy/term/13151" hreflang="en">Marketing Faculty Research</a></div> <div class="field__item"><a href="/taxonomy/term/271" hreflang="en">Research</a></div> <div class="field__item"><a href="/taxonomy/term/21051" hreflang="en">Operations - Costello</a></div> </div> </div> </div> <div data-block-plugin-id="inline_block:news_list" data-inline-block-uuid="27048846-a952-4790-aa42-7d89af0d9b79" class="block block-layout-builder block-inline-blocknews-list"> <h2>Related Stories</h2> <div class="views-element-container"><div class="view view-news view-id-news view-display-id-block_1 js-view-dom-id-c377d6d6474112cc2d128011568e0bfcffe499cba884eb1315a49e999f940f6d"> <div class="view-content"> <div class="news-list-wrapper"> <ul class="news-list"> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/george-mason-and-us-air-force-partner-rapidly-field-emerging-capabilities" hreflang="en">George Mason and U.S. Air Force partner to rapidly field emerging capabilities </a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 18, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/power-showing-how-honors-college-student-built-career-seizing-every-opportunity" hreflang="en">The power of showing up: How this Honors College student built a career by seizing every opportunity </a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 12, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/wrap-april-30-bov-meeting" hreflang="en">Wrap up for April 30 BOV meeting </a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 11, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/costello-senior-good-business-win-win" hreflang="en">For this Costello senior, good business is a win-win</a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 7, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2025-11/senior-year-works-create-opportunities-all" hreflang="en">Senior of the Year works to create opportunities for all </a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 7, 2026</div></div></li> </ul> </div> </div> </div> </div> </div> </div> </div> Wed, 02 Jul 2025 15:38:03 +0000 Jennifer Anzaldi 117981 at Nonprofits are in trouble. Could more sensitive chatbots be the answer? /news/2025-03/nonprofits-are-trouble-could-more-sensitive-chatbots-be-answer <span>Nonprofits are in trouble. Could more sensitive chatbots be the answer?</span> <span><span>Jennifer Anzaldi</span></span> <span><time datetime="2025-03-18T10:48:25-04:00" title="Tuesday, March 18, 2025 - 10:48">Tue, 03/18/2025 - 10:48</time> </span> <div class="layout layout--gmu layout--twocol-section layout--twocol-section--70-30"> <div class="layout__region region-first"> <div data-block-plugin-id="field_block:node:news_release:body" class="block block-layout-builder block-field-blocknodenews-releasebody"> <div class="field field--name-body field--type-text-with-summary field--label-visually_hidden"> <div class="field__label visually-hidden">Body</div> <div class="field__item"><p><span class="intro-text">In today’s attention economy, impact-driven organizations are arguably at a disadvantage. Since they have no tangible product to sell, the core of their appeal is emotional rather than practical—the “warm glow” of contributing to a cause you care about. But emotional appeals call for more delicacy and precision than standardized marketing tools, such as mass email campaigns, can sustain. Emotional states vary from person to person—even from moment to moment within the same person.&nbsp;</span></p> <figure role="group" class="align-right"> <div> <div class="field field--name-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/small_content_image/public/2025-03/chatbottexting.gettyimages.1612845228.jpg?itok=ib4ar_oW" width="350" height="349" loading="lazy"> </div> </div> <figcaption>Photo by Getty Images</figcaption> </figure> <p><a href="https://business.gmu.edu/profiles/sbhatt22" title="Siddharth Bhattacharya">Siddharth Bhattacharya</a> and <a href="https://business.gmu.edu/profiles/psanyal" title="Pallab Sanyal">Pallab Sanyal</a>, professors of information systems and operations management at the <a href="https://business.gmu.edu/" title="Costello College of Business | 91">Donald G. Costello College of Business</a> at 91, believe that artificial intelligence (AI) can help solve this problem. A well-designed chatbot could be programmed to calibrate persuasive appeals in real time, delivering messaging more likely to motivate someone to take a desired next step, whether that’s donating money, volunteering time or simply pledging support. Automated solutions, such as chatbots, can be especially rewarding for nonprofits, which tend to be cash-conscious and resource-constrained.&nbsp;&nbsp;<br><br>“We completed a project in Minneapolis and are working with other organizations, in Boston, New Jersey and elsewhere, but the focus is always the same,” Sanyal says. “How can we leverage AI to enhance efficiency, reduce costs, and improve service quality in nonprofit organizations?”&nbsp;</p> <figure role="group" class="align-left"> <div> <div class="field field--name-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/small_content_image/public/2025-03/siddharth-bhattacharya-600x600.jpg?itok=FOzHT86L" width="350" height="350" loading="lazy"> </div> </div> <figcaption>Siddarth Bhattacharya. Photo provided</figcaption> </figure> <p>Sanyal and Bhattacharya’s <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4914622" title="Read the article">working paper</a> (coauthored by Scott Schanke of University of Wisconsin Milwaukee) describes their recent randomized field experiment with a Minneapolis-based women’s health organization. The researchers designed a custom chatbot to interact with prospective patrons through the organization’s Facebook Messenger app. The bot was programmed to adjust, at random, its responses to be more or less emotional, as well as more or less anthropomorphic (human-like).</p> <p>“For the anthropomorphic condition, we introduced visual cues such as typing bubbles and slightly delayed response to mimic the experience of messaging with another human,” Sanyal says.&nbsp;&nbsp;<br><br>The chatbot’s “emotional” mode featured more subjective, generalizing statements with liberal use of provocative words such as “unfair,” “discrimination” and “unjust.” The “informational” modes leaned more heavily on facts and statistics.&nbsp;&nbsp;<br><br>Over the course of hundreds of real Facebook interactions, the moderately emotional chatbot achieved deepest user engagement, as defined by a completed conversation. (Completion rate was critical because after the last interaction, users were redirected to a contact/donation form.) But when the emotional level went from moderate to extreme, more users bailed out on the interaction.&nbsp;&nbsp;<br><br>The takeaway may be that “there is a sweet spot where some emotion is important, but beyond that emotions can be bad,” as Bhattacharya explains.&nbsp;</p> <figure role="group" class="align-right"> <div> <div class="field field--name-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/small_content_image/public/2025-03/pallab-sanyal-600x600.jpg?itok=mEJSZQlo" width="350" height="350" loading="lazy"> </div> </div> <figcaption>Pallab Sanyal. Photo provided</figcaption> </figure> <p>When human-like features were layered on top of emotionalism, that sweet spot got even smaller. Anthropomorphism lowered completion rates and reduced the organization’s ability to use emotional engagement as a motivational tool.&nbsp;&nbsp;<br><br>“In the retail space, studies have shown anthropomorphism to be useful,” Bhattacharya says. “But in a nonprofit context, it’s totally empathy-driven and less transactional. If that is the case, maybe these human cues coming from a bot make people feel creepy, and they back off.”&nbsp;</p> <p>Sanyal and Bhattacharya say that more customized-chatbot experiments with other nonprofits are in the works. They are taking into careful consideration the success metrics and unique needs of each partner organization.&nbsp;&nbsp;</p> <p>“Most of the time, we researchers sit in our offices and work on these problems,” Sanyal says. “But one aspect of these projects that I really like is that we are learning so much from talking to these people.”&nbsp;&nbsp;<br><br>In collaboration with the organizations concerned, they are designing chatbots that can cater their persuasive appeals more closely to each context and individual interlocutor. If successful, this method would prove that chatbots could become more than a second-best substitute for a salaried human being. They could serve as interactive workshops for crafting and refining an organization’s messaging to a much more granular level than previously possible.&nbsp;&nbsp;<br><br>And this would improve the effectiveness of organizational outreach across the board—a consummate example of AI enhancing, rather than displacing, human labor. “This AI is augmenting human functions,” says Sanyal. “It’s not replacing. Sometimes it’s complementing, sometimes it’s supplementing. But at the end of the day, it is just augmenting.”</p> </div> </div> </div> </div> <div class="layout__region region-second"> <div data-block-plugin-id="field_block:node:news_release:field_associated_people" class="block block-layout-builder block-field-blocknodenews-releasefield-associated-people"> <h2>In This Story</h2> <div class="field field--name-field-associated-people field--type-entity-reference field--label-visually_hidden"> <div class="field__label visually-hidden">People Mentioned in This Story</div> <div class="field__items"> <div class="field__item"><a href="/profiles/sbhatt22" hreflang="en">Siddharth Bhattacharya</a></div> <div class="field__item"><a href="/profiles/psanyal" hreflang="en">Pallab Sanyal</a></div> </div> </div> </div> <div data-block-plugin-id="inline_block:text" data-inline-block-uuid="c240fc12-3e0b-43bb-abd9-a9191ef79491" class="block block-layout-builder block-inline-blocktext"> </div> <div data-block-plugin-id="inline_block:news_list" data-inline-block-uuid="1fdcc108-546b-482c-a063-0ce1c85f44d1" class="block block-layout-builder block-inline-blocknews-list"> <h2>Related Stories</h2> <div class="views-element-container"><div class="view view-news view-id-news view-display-id-block_1 js-view-dom-id-36b6c299adab08645847586e868cfe11cf843618b58a94ddd23b9c44bf0093e9"> <div class="view-content"> <div class="news-list-wrapper"> <ul class="news-list"> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-06/george-mason-university-professor-probes-labubu-economics" hreflang="en">91 professor probes ‘Labubu economics’</a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">June 3, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/ms-finance-alum-built-career-foundation-through-academic-engagement" hreflang="en">MS in Finance alum built a career foundation through academic engagement</a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 27, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/students-step-world-investment-banking-through-costello-fellows-wall-street" hreflang="en">Students step into the world of investment banking through Costello Fellows on Wall Street</a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 13, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/power-showing-how-honors-college-student-built-career-seizing-every-opportunity" hreflang="en">The power of showing up: How this Honors College student built a career by seizing every opportunity </a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 12, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/george-mason-universitys-costello-college-business-and-naba-inc-join-forces-develop" hreflang="en">91's Costello College of Business and NABA Inc. join forces to develop the business leaders of tomorrow</a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 8, 2026</div></div></li> </ul> </div> </div> </div> </div> </div> </div> </div> <div class="layout layout--gmu layout--twocol-section layout--twocol-section--30-70"> <div> </div> <div class="layout__region region-second"> <div data-block-plugin-id="field_block:node:news_release:field_content_topics" class="block block-layout-builder block-field-blocknodenews-releasefield-content-topics"> <h2>Topics</h2> <div class="field field--name-field-content-topics field--type-entity-reference field--label-visually_hidden"> <div class="field__label visually-hidden">Topics</div> <div class="field__items"> <div class="field__item"><a href="/taxonomy/term/21316" hreflang="en">A.I. and Innovation - Costello</a></div> <div class="field__item"><a href="/taxonomy/term/21021" hreflang="en">ESG - Costello</a></div> <div class="field__item"><a href="/taxonomy/term/20916" hreflang="en">Costello Research Digital Platforms</a></div> <div class="field__item"><a href="/taxonomy/term/21056" hreflang="en">Costello Research Artificial Intelligence</a></div> <div class="field__item"><a href="/taxonomy/term/21106" hreflang="en">Costello Research Machine Learning</a></div> <div class="field__item"><a href="/taxonomy/term/12501" hreflang="en">Costello College of Business News</a></div> <div class="field__item"><a href="/taxonomy/term/13796" hreflang="en">Costello College of Business Faculty Research</a></div> <div class="field__item"><a href="/taxonomy/term/13131" hreflang="en">ISOM Faculty Research</a></div> </div> </div> </div> </div> </div> Tue, 18 Mar 2025 14:48:25 +0000 Jennifer Anzaldi 116161 at George Mason professor furthers impact of telemedicine in Ukraine /news/2025-01/george-mason-professor-furthers-impact-telemedicine-ukraine <span>George Mason professor furthers impact of telemedicine in Ukraine</span> <span><span>Jennifer Anzaldi</span></span> <span><time datetime="2025-01-14T17:39:16-05:00" title="Tuesday, January 14, 2025 - 17:39">Tue, 01/14/2025 - 17:39</time> </span> <div class="layout layout--gmu layout--twocol-section layout--twocol-section--70-30"> <div class="layout__region region-first"> <div data-block-plugin-id="field_block:node:news_release:body" class="block block-layout-builder block-field-blocknodenews-releasebody"> <div class="field field--name-body field--type-text-with-summary field--label-visually_hidden"> <div class="field__label visually-hidden">Body</div> <div class="field__item"><p><span class="intro-text">Ukraine’s health care system has been hit hard amid the ongoing war. Power outages, staffing shortages, and the destruction of hospitals have added up to a drastic reduction in available care for the already-vulnerable population.&nbsp;In a desperate attempt to bridge the gap, Ukraine’s Ministry of Health opened the country to telehealth solutions from overseas. But will these prove to be a successful substitute for at least some necessary services, or turn out to be no better than a tech Band-Aid?</span><br><br>Answering that question is where <a href="https://business.gmu.edu/profiles/mpetryk" title="Mariia Petryk">Mariia Petryk</a>, assistant professor of information systems and operations management at the Costello College of Business at 91, comes in. In her spare time, she works as volunteer director of analytics for <a href="https://telehelpukraine.com/" target="_blank" title="Learn more.">TeleHelp Ukraine</a> (THU).</p> <figure role="group" class="align-right"> <div> <div class="field field--name-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/small_content_image/public/2024-01/mariia-thumb.jpg?itok=xKkjkCol" width="350" height="350" alt="Mariia Petryk" loading="lazy"> </div> </div> <figcaption>Mariia Petryk</figcaption> </figure> <p>Founded by a cross-disciplinary group of Stanford students shortly after the war’s inception, THU was designed to succeed where other telemedicine initiatives in crisis-affected areas have failed. The founders worked tirelessly to assemble an international volunteer network comprising medical professionals, translators, interpreters and administrative “health navigators.” Aware that medical consultations were only part of the patient journey, THU’s founders sought to address the entire continuum of care.<br><br>Petryk stresses that while the project originated at Stanford, the technical team included “people from Chicago, Boston, other California schools…some very active volunteers were in Australia, South Korea, Canada and other countries.”<br><br>Petryk, herself of Ukrainian descent, was honored to lend her data science expertise to this worthy project. As analytics director, she manages a dozen or so number-crunching volunteers who measured and documented THU’s impact upon Ukraine’s displaced population during the initiative’s first full year.<br><br>As Petryk explains, “The Russian invasion created a humanitarian crisis where a lot of people were internally displaced. And when people relocate to a new place, they don’t know where to go for health care. They also are at higher risk for many issues, including mental health problems. And they don’t know where to turn to treat chronic diseases they may have.”<br><br>THU’s primary focus during its first year was delivering much-needed services to this population of war-ravaged internal exiles.<br><br>Petryk’s analytical work gave rise to a recent case study of THU published in <a href="https://pubmed.ncbi.nlm.nih.gov/39451063/" target="_blank" title="Learn more."><em>Journal of Global Health</em></a>. The paper’s other lead author was Aditya Narayan, a Stanford medical student and THU’s director of implementation and evaluation.<br><br>Their findings describe some impressive early successes. THU facilitated more than 1,200 virtual patient appointments from May 2022 to May 2023 alone. Despite often-chaotic conditions, patient attendance rates were above 70 percent for nine of the 13 months studied. As the first year wore on, the THU team found ways to prevent no-shows<span lang="EN-SG">—</span>for example, employing the popular texting platform Viber to communicate with patients and assigning an individual health navigator to each patient.<br><br>Even more impressively, 96 percent of patients reported that their health complaints were at least partially resolved during their visit.&nbsp;<br><br>The paper argues that aspects of THU’s model could be adapted for use in other humanitarian contexts. In its initial growth phase, THU had access to advanced technological infrastructure and a wide network of medical providers, by dint of its academic origins. This implies that partnerships with academia could be critical to replicating THU’s success outside Ukraine.&nbsp;<br><br>Petryk remains proud of THU’s impact and her role in helping define it. “Based on actual appointments and how much that amount of care would cost at a hospital, THU delivered an estimated $1 million worth of services in its first 13 months,” she says.&nbsp;<br><br>Looking ahead to THU’s future, she says, “I can only wish to see this ‘start-up,’ as it were, go for the IPO.”<br><br><em>For more information and to explore volunteering opportunities, visit </em><a href="https://telehelpukraine.com/" target="_blank" title="Learn more."><em>THU’s website</em></a><em>.</em></p> </div> </div> </div> </div> <div class="layout__region region-second"> <div data-block-plugin-id="field_block:node:news_release:field_associated_people" class="block block-layout-builder block-field-blocknodenews-releasefield-associated-people"> <h2>In This Story</h2> <div class="field field--name-field-associated-people field--type-entity-reference field--label-visually_hidden"> <div class="field__label visually-hidden">People Mentioned in This Story</div> <div class="field__items"> <div class="field__item"><a href="/profiles/mpetryk" hreflang="en">Mariia Petryk</a></div> </div> </div> </div> <div data-block-plugin-id="inline_block:call_to_action" data-inline-block-uuid="e11e6d90-32b8-4ae4-a99b-b6e571876b22"> <div class="cta"> <a class="cta__link" href="https://business.gmu.edu/"> <p class="cta__title">Connect with the Costello College of Business <i class="fas fa-arrow-circle-right"></i> </p> <span class="cta__icon"></span> </a> </div> </div> <div data-block-plugin-id="inline_block:text" data-inline-block-uuid="ac2340b0-d673-448f-a799-a905f19f74a7" class="block block-layout-builder block-inline-blocktext"> </div> <div data-block-plugin-id="inline_block:news_list" data-inline-block-uuid="9a46ceb0-9455-4553-a049-e250027ed888" class="block block-layout-builder block-inline-blocknews-list"> <h2>Related News</h2> <div class="views-element-container"><div class="view view-news view-id-news view-display-id-block_1 js-view-dom-id-b954ddf3a74363606bca074595d965bd93144ebf919b3649909ed0016359caed"> <div class="view-content"> <div class="news-list-wrapper"> <ul class="news-list"> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-06/george-mason-university-professor-probes-labubu-economics" hreflang="en">91 professor probes ‘Labubu economics’</a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">June 3, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/george-mason-and-us-air-force-partner-rapidly-field-emerging-capabilities" hreflang="en">George Mason and U.S. Air Force partner to rapidly field emerging capabilities </a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 18, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/power-showing-how-honors-college-student-built-career-seizing-every-opportunity" hreflang="en">The power of showing up: How this Honors College student built a career by seizing every opportunity </a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 12, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/wrap-april-30-bov-meeting" hreflang="en">Wrap up for April 30 BOV meeting </a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 11, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/costello-senior-good-business-win-win" hreflang="en">For this Costello senior, good business is a win-win</a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 7, 2026</div></div></li> </ul> </div> </div> </div> </div> </div> <div data-block-plugin-id="field_block:node:news_release:field_content_topics" class="block block-layout-builder block-field-blocknodenews-releasefield-content-topics"> <h2>Topics</h2> <div class="field field--name-field-content-topics field--type-entity-reference field--label-visually_hidden"> <div class="field__label visually-hidden">Topics</div> <div class="field__items"> <div class="field__item"><a href="/taxonomy/term/21316" hreflang="en">A.I. and Innovation - Costello</a></div> <div class="field__item"><a href="/taxonomy/term/21021" hreflang="en">ESG - Costello</a></div> <div class="field__item"><a href="/taxonomy/term/20911" hreflang="en">Costello Research ICT</a></div> <div class="field__item"><a href="/taxonomy/term/20921" hreflang="en">Costello Research Data Analytics</a></div> <div class="field__item"><a href="/taxonomy/term/20916" hreflang="en">Costello Research Digital Platforms</a></div> <div class="field__item"><a href="/taxonomy/term/12501" hreflang="en">Costello College of Business News</a></div> <div class="field__item"><a href="/taxonomy/term/13796" hreflang="en">Costello College of Business Faculty Research</a></div> <div class="field__item"><a href="/taxonomy/term/13131" hreflang="en">ISOM Faculty Research</a></div> <div class="field__item"><a href="/taxonomy/term/206" hreflang="en">Faculty and Staff News</a></div> <div class="field__item"><a href="/taxonomy/term/17041" hreflang="en">Off the Clock</a></div> <div class="field__item"><a href="/taxonomy/term/1796" hreflang="en">STEM outreach</a></div> <div class="field__item"><a href="/taxonomy/term/21827" hreflang="en">Costello Research Health and Well-being at Work</a></div> </div> </div> </div> </div> </div> Tue, 14 Jan 2025 22:39:16 +0000 Jennifer Anzaldi 115341 at Are U.S. ‘news deserts’ hothouses of corruption? /news/2024-11/are-us-news-deserts-hothouses-corruption <span>Are U.S. ‘news deserts’ hothouses of corruption?</span> <span><span>Jennifer Anzaldi</span></span> <span><time datetime="2024-11-19T11:35:27-05:00" title="Tuesday, November 19, 2024 - 11:35">Tue, 11/19/2024 - 11:35</time> </span> <div class="layout layout--gmu layout--twocol-section layout--twocol-section--70-30"> <div class="layout__region region-first"> <div data-block-plugin-id="field_block:node:news_release:body" class="block block-layout-builder block-field-blocknodenews-releasebody"> <div class="field field--name-body field--type-text-with-summary field--label-visually_hidden"> <div class="field__label visually-hidden">Body</div> <div class="field__item"><p><span class="intro-text">The March 24, 2021 edition of neighborhood newspaper Northeast News, out of Kansas City, Missouri, contained a surprise for its 9,000 subscribers. Where the front-page news should have been, there was a big, blank white space. This was no printer’s error, but a last-ditch cry for help. After 89 years in operation, </span><a href="https://northeastnews.net/pages/" target="_blank" title="Learn more."><em><span class="intro-text">Northeast News</span></em></a><span class="intro-text"> had found itself on the brink of insolvency due to the loss of key advertisers amid the COVID pandemic. The empty front page was designed to remind the community of what it would lose if its only local paper went under.</span><br><br>The gambit went viral, prompting a flood of online donations that is keeping the paper afloat, for now. Ironically, <em>Northeast News</em> owes its existence to the very force that has fueled the more general decline of local journalism in America—the internet.</p> <figure role="group" class="align-left"> <div> <div class="field field--name-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/small_content_image/public/2023-05/brad-greenwood.jpg?itok=8Fax7wVR" width="350" height="350" alt="Brad Greenwood" loading="lazy"> </div> </div> <figcaption>Brad Greenwood</figcaption> </figure> <p>As advertiser dollars migrated to Facebook and Google, the business model that supported local newspapers for generations came to the edge of collapse. <a href="https://pressgazette.co.uk/news/news-deserts-research-newspapers-closed/" target="_blank" title="Read the article.">Since 2004, more than 2,500 American newspapers have ceased publication</a>—around one-quarter of the total. Overall newspaper circulation has declined by more than half since 1990.<br><br>To be sure, digital alternatives have rushed in to fill the gap, such as citizen-journalist websites, nonprofit news organs, partisan blogs, etc. So, the question represented by the blank front page of <em>Northeast News</em> resonates: What do communities lose when newspapers fold that online journalism startups haven’t (so far, at least) been able to replace?<br><br>In the past, industry observers and researchers have linked community newspaper closure to diminished civic trust and political participation, among other negative effects. New research from <a href="https://business.gmu.edu/profiles/bgreenwo" title="Brad Greenwood">Brad Greenwood</a>, the Maximus Corporate Partner Professor of Business at the <a href="https://business.gmu.edu/" title="Costello College of Business | 91">Costello College of Business</a> at 91, builds on this discourse, finding evidence that when local papers topple, political corruption springs up in their wake.<br><br>Greenwood’s paper, coauthored by Ted Matherly of Tulane University, was published in <a href="https://misq.umn.edu/no-news-is-bad-news-the-internet-corruption-and-the-decline-of-the-fourth-estate.html" target="_blank" title="Read the article."><em>MIS Quarterly</em></a>.<br><br>The researchers focused on U.S. federal districts that lost a major daily newspaper during the years 1996 to 2019. They compared the number of corruption charges (bribery, embezzlement, fraud, etc.), defendants, and cases filed in district court before and after the newspaper closure. The results were striking: Overall, the disappearance of a newspaper delivered a 6.9% increase in charges, a 6.8% increase in the number of indicted defendants and a 7.4% increase in cases filed.<br><br>“We looked at federal charges for three reasons. First, the overwhelming amount of statutory enforcement occurs federally. Second, it gives us a uniform definition of what constitutes corruption across every domestic jurisdiction. Finally, and most importantly, federal conviction rates are over 90%,” Greenwood says. “They don’t charge people unless they have a good-faith belief they will prevail at trial.”<br><br>Moreover, post-newspaper corruption cases were more likely to go to trial as opposed to resolving in a plea deal, thus incurring greater public costs.</p> <figure class="quote"> <p>“In an age of misinformation, the solution is not rejecting the professional press, it is embracing it, and ensuring that well-trained and hard-working men and women have both the ability and venue to hold those in power to account."</p> </figure> <p>Greenwood and Matherly also examined whether digital-era upstarts were adequate substitutes for newspapers, in terms of curtailing corruption. They tracked 352 such websites, and found they had no impact on the number of charges, defendants or cases in the districts concerned.&nbsp;<br><br>“While it’s hard to say precisely why we don’t see an effect from online news, there are several candidate explanations. Not only do citizen journalists lack the standing and training to tackle questions of public corruption and elevate discourse in the public square, but many of these sites aren’t even legitimate news vendors,” says Greenwood, referencing what are commonly referred to as “pink slime websites.”<br><br>Greenwood goes on to suggest that the corruption-preventing power of the defunct papers came not necessarily from journalistic acumen, but rather from the ability to elevate the actions bad actors had taken in public discourse, a process journalism researchers refer to as agenda setting.&nbsp;<br><br>Whatever the cause, the ramifications for society are very real. In the Northern District of Illinois alone, corruption-related cases involving more than 1,700 officials cost taxpayers a staggering $550 million per year from 1976 to 2012. The coffers of communities that lose newspapers may suffer more than most, since these cases tend to end up in expensive courtroom proceedings rather than plea deals.<br><br>Further, the study only looks at corrupt officials who got caught. Presumably, there are many more whose corruption went unpunished.<br><br>All told, these findings suggest that community newspapers should not be regarded as just another business model ill-adapted to digital disruption that should be allowed to fail. Their demise comes at significant public cost, financial and otherwise. “In an age of misinformation, the solution is not rejecting the professional press, it is embracing it, and ensuring that well-trained and hard-working men and women have both the ability and venue to hold those in power to account,” Greenwood says.</p> <p>&nbsp;</p> </div> </div> </div> </div> <div class="layout__region region-second"> <div data-block-plugin-id="field_block:node:news_release:field_associated_people" class="block block-layout-builder block-field-blocknodenews-releasefield-associated-people"> <h2>In This Story</h2> <div class="field field--name-field-associated-people field--type-entity-reference field--label-visually_hidden"> <div class="field__label visually-hidden">People Mentioned in This Story</div> <div class="field__items"> <div class="field__item"><a href="/profiles/bgreenwo" hreflang="en">Brad Greenwood</a></div> </div> </div> </div> <div data-block-plugin-id="inline_block:text" data-inline-block-uuid="3d5916b3-0949-47e4-8cd8-954d8cc30203" class="block block-layout-builder block-inline-blocktext"> </div> <div data-block-plugin-id="inline_block:news_list" data-inline-block-uuid="c2affe88-bbc6-4359-9af1-dee67bf03750" class="block block-layout-builder block-inline-blocknews-list"> <h2>Related Stories</h2> <div class="views-element-container"><div class="view view-news view-id-news view-display-id-block_1 js-view-dom-id-073aac3f7777ac628bb5be9dcb30f4ba507a9001035dcda1bdfa68dce5c82340"> <div class="view-content"> <div class="news-list-wrapper"> <ul class="news-list"> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-06/george-mason-university-professor-probes-labubu-economics" hreflang="en">91 professor probes ‘Labubu economics’</a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">June 3, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/ms-finance-alum-built-career-foundation-through-academic-engagement" hreflang="en">MS in Finance alum built a career foundation through academic engagement</a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 27, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/students-step-world-investment-banking-through-costello-fellows-wall-street" hreflang="en">Students step into the world of investment banking through Costello Fellows on Wall Street</a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 13, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/power-showing-how-honors-college-student-built-career-seizing-every-opportunity" hreflang="en">The power of showing up: How this Honors College student built a career by seizing every opportunity </a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 12, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-05/george-mason-universitys-costello-college-business-and-naba-inc-join-forces-develop" hreflang="en">91's Costello College of Business and NABA Inc. join forces to develop the business leaders of tomorrow</a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">May 8, 2026</div></div></li> </ul> </div> </div> </div> </div> </div> <div data-block-plugin-id="inline_block:text" data-inline-block-uuid="2ac7c3f5-6f8d-4939-97fd-fa0fea4fc414" class="block block-layout-builder block-inline-blocktext"> </div> <div data-block-plugin-id="field_block:node:news_release:field_content_topics" class="block block-layout-builder block-field-blocknodenews-releasefield-content-topics"> <h2>Topics</h2> <div class="field field--name-field-content-topics field--type-entity-reference field--label-visually_hidden"> <div class="field__label visually-hidden">Topics</div> <div class="field__items"> <div class="field__item"><a href="/taxonomy/term/21021" hreflang="en">ESG - Costello</a></div> <div class="field__item"><a href="/taxonomy/term/20926" hreflang="en">Costello Research Business Model Innovation</a></div> <div class="field__item"><a href="/taxonomy/term/20916" hreflang="en">Costello Research Digital Platforms</a></div> <div class="field__item"><a href="/taxonomy/term/12501" hreflang="en">Costello College of Business News</a></div> <div class="field__item"><a href="/taxonomy/term/13796" hreflang="en">Costello College of Business Faculty Research</a></div> <div class="field__item"><a href="/taxonomy/term/13131" hreflang="en">ISOM Faculty Research</a></div> <div class="field__item"><a href="/taxonomy/term/271" hreflang="en">Research</a></div> </div> </div> </div> </div> </div> <div class="layout layout--gmu layout--twocol-section layout--twocol-section--30-70"> <div> </div> <div> </div> </div> Tue, 19 Nov 2024 16:35:27 +0000 Jennifer Anzaldi 114851 at How this summer’s heat waves may impact the economy /news/2024-08/how-summers-heat-waves-may-impact-economy <span>How this summer’s heat waves may impact the economy</span> <span><span>Greg Johnson</span></span> <span><time datetime="2024-08-06T09:39:44-04:00" title="Tuesday, August 6, 2024 - 09:39">Tue, 08/06/2024 - 09:39</time> </span> <div class="layout layout--gmu layout--twocol-section layout--twocol-section--70-30"> <div class="layout__region region-first"> <div data-block-plugin-id="field_block:node:news_release:body" class="block block-layout-builder block-field-blocknodenews-releasebody"> <div class="field field--name-body field--type-text-with-summary field--label-visually_hidden"> <div class="field__label visually-hidden">Body</div> <div class="field__item"><p><span class="intro-text">This sweltering summer has brought record-breaking high temperatures to 63 countries, all but cementing 2024’s status as the world’s hottest year on record (even though we’re barely past the halfway point). Such extreme weather trends are bound to have serious implications for the environment, public health, and the economy.</span></p> <figure role="group" class="align-left"> <div> <div class="field field--name-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/small_content_image/public/2024-08/joseph-han-stice.jpg?itok=0sQiZEun" width="278" height="350" alt="Joseph (Han) Stice" loading="lazy"> </div> </div> <figcaption>Joseph (Han) Stice</figcaption> </figure> <p><span>Why, then, aren’t economic indicators flashing bright red? </span><a href="https://business.gmu.edu/profiles/jstice" title="Joseph (Han) Stice | Costello College of Business"><span>Joseph (Han) Stice</span></a><span>, assistant professor of accounting at the </span><a href="https://business.gmu.edu/" title="Costello College of Business | 91"><span>Donald G. Costello College of Business</span></a><span> at 91, has run the numbers on business and climate change. His recent </span><a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4770543" title="Learn more."><span>working paper</span></a><span>, co-authored by Marcus Kirk of University of Florida and Derrald Stice of University of Hong Kong, paints a picture of profound climate-related disruption underneath the placid-seeming surface of the economy.</span></p> <p><span>For the years 1990 to 2020, the researchers compared quarterly sales performance from a large sample of U.S. firms to the temperature data at their base of operations. In this way, they constructed a measure of weather sensitivity, which they termed “weather beta,” for each company in the initial sample. Specifically, they were looking at whether sales either benefited or suffered when local temperatures were higher or lower than the “ideal” of 65 degrees Fahrenheit.</span></p> <p><span>“What they—</span><em><span>they </span></em><span>being the people who examine temperature—say is that if it’s above 65, you turn on your air conditioning. If it’s below 65, you turn on your heater,” says Stice.</span></p> <p><span>After restricting the sample to only those firms with discernible weather beta, they ended up with a data-set comprising 66,795 firm-quarters.</span></p> <p><span>Across the sample as a whole, the results were a misleading nonstarter. Weather fluctuations did not seem to have an impact on economy-wide sales, one way or the other.</span></p> <p><span>This was no surprise to Stice. Citing past research, he points out that “the overall economic effect is that colder weather is, on average, better. But that’s not true in every single instance. Some industries (i.e., agriculture) benefit from hot weather. And it also depends on what region you’re in, what time of year it is, etc.”</span></p> <figure class="quote"> <p><span>“We need to have a national discussion and a global discussion,” Stice says. “But the people who really matter are the local leaders, as far as climate is concerned. The people you elect on the local level are going to have a much greater impact on how you respond and how your companies can adjust, than whether or not your candidate is in the White House.”</span></p> </figure> <p><span>To gauge actual impact, the researchers split the sample by size and geographic concentration, presuming that larger firms with a wider geographic footprint would be less affected by temperature changes at home base. These differences between firms proved to be critical. For the smallest, most localized firms, a swing from the 75th to the 25th percentile in terms of nonideal temperature meant 8.8-15.9% lower sales. The biggest and most sprawling firms saw sales declines of just 4.3-5.6% from an equivalent shift.</span></p> <p><span>Stice clarifies that “we are talking about very small deviations, like percentages of degrees on average per day over an entire quarter. If it were one degree hotter than 65 degrees every day, that would come up in our measure as a 90. The biggest number we have is like a 25 or a 30.”</span></p> <p><span>Also, sales impact tells only part of the story. The sheer size of the data-set allowed Stice and his co-authors to predict quarterly sales performance for individual firms, based on the weather and firm characteristics. On average, actual sales declines were about half as severe as predicted. The researchers speculate that firms were able to soften the blow of immoderate temperatures by adjusting their business practices. The time and resources spent on these adaptations are part of the hidden economic costs of climate volatility.</span></p> <p><span>If firm managers can anticipate how the weather can impact business outcomes, you would expect financial analysts to be at least as attentive to climate effects. However, the researchers found that sales forecasts made shortly before earnings announcements were thrown off by abnormal temperatures in the previous quarter, with 7.4% inaccuracy in the mean. Similarly, the researchers found that weather impact was positively correlated with announcement-period stock market returns. Apparently, even professional investors are being caught off guard by the subtle but costly interactions between climate and economic activity.</span></p> <p><span>For more accurate appraisals, Stice suggests we should turn to the local level. He notes that his measures of firm-specific weather sensitivity happen to line up fairly neatly with municipal self-assessments made by local governments as part of the </span><a href="https://www.cdp.net/en" title="Learn more."><span>Carbon Disclosure Project</span></a><span>.</span></p> <p><span>“We need to have a national discussion and a global discussion,” Stice says. “But the people who really matter are the local leaders, as far as climate is concerned. The people you elect on the local level are going to have a much greater impact on how you respond and how your companies can adjust, than whether or not your candidate is in the White House.”</span></p> <p>&nbsp;</p> </div> </div> </div> </div> <div class="layout__region region-second"> <div data-block-plugin-id="inline_block:call_to_action" data-inline-block-uuid="00013ff0-6b1b-4b12-9225-ad8809b40738"> <div class="cta"> <a class="cta__link" href="https://business.gmu.edu/"> <p class="cta__title">Empower your future with Costello College of Business <i class="fas fa-arrow-circle-right"></i> </p> <span class="cta__icon"></span> </a> </div> </div> <div data-block-plugin-id="inline_block:text" data-inline-block-uuid="c598e59b-58b8-4b87-b025-b5d618ee0c7e" class="block block-layout-builder block-inline-blocktext"> </div> <div data-block-plugin-id="field_block:node:news_release:field_associated_people" class="block block-layout-builder block-field-blocknodenews-releasefield-associated-people"> <h2>In This Story</h2> <div class="field field--name-field-associated-people field--type-entity-reference field--label-visually_hidden"> <div class="field__label visually-hidden">People Mentioned in This Story</div> <div class="field__items"> <div class="field__item"><a href="/profiles/jstice" hreflang="en">Joseph (Han) Stice</a></div> </div> </div> </div> <div data-block-plugin-id="inline_block:text" data-inline-block-uuid="9514a9b8-5978-41ee-b3f8-4f0cb72e0db3" class="block block-layout-builder block-inline-blocktext"> </div> <div data-block-plugin-id="inline_block:news_list" data-inline-block-uuid="338406df-16bc-4e6a-9b36-572e2a65eac0" class="block block-layout-builder block-inline-blocknews-list"> <h2>Related News</h2> <div class="views-element-container"><div class="view view-news view-id-news view-display-id-block_1 js-view-dom-id-db344e18f51b1d7a9f85a1577461b81d6447f1de10e1ba8f538026d846d5a0dd"> <div class="view-content"> <div class="news-list-wrapper"> <ul class="news-list"> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-06/nsf-career-award-will-support-teen-autonomy-age-ai" hreflang="en">NSF CAREER award will support teen autonomy in age of AI</a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">June 9, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-06/george-mason-engineering-team-uses-robotics-rethink-accessibility" hreflang="en">George Mason engineering team uses robotics to rethink accessibility </a></span></div><div class="views-field views-field-field-publish-date"><div class="field-content">June 9, 2026</div></div></li> <li class="news-item"><div class="views-field views-field-title"><span class="field-content"><a href="/news/2026-06/why-did-ai-agent-cross-road" hreflang="en">Why did the AI agent cross the road? 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