Diabetes burden and firm value: The role of labor

Building on human relations and stakeholder theories, we demonstrate a negative relationship between state-level diabetes burden, measured by diabetes-related death rates, and firm value. We identify three key moderating channels: organizational capital, which captures a firm's ability to attract and retain skilled labor; labor-intensive industries, such as mining and manufacturing; and labor productivity, measured by sales per employee. This study contributes to the ESG (environmental, social, governance) literature by illustrating how community health influences corporate performance and by providing empirical evidence linking the diabetes burden to firm value. By integrating health factors into business strategies, we expand the literature on firm valuation and emphasize the role of public health in creating value by aligning stakeholder interests with workforce wellbeing. The findings also offer practical implications for policymakers and managers, highlighting the importance of recognizing chronic disease burdens as key determinants of firm performance in the pursuit of sustainable development.