After receiving tremendous public criticism due in part to the provocative media portrayal of its CEO, in an article titled “Goldman’s boss: We do God’s work,” Goldman Sachs jumped up to rank #2 in terms of the dollar amount spent on philanthropic contributions (PC, hereafter) in 2010 by more than quadrupling. The observation prompts us to ask the question: Should a firm invest more in corporate social responsibility (CSR), such as PC, in response to negative public opinion about the company? Using textual analysis of one million news articles about the largest 100 firms in the US in terms of PC over 2000~2010, we find that firms strengthen their CSR performance and spend more on PC when the tone of the CSR news is more negative. The sensitivity is not a function of governance strength, which implies a unique impact of the media on CSR activity. In further analysis, we find that negative media coverage about CSR news chases customers away.
Key words: philanthropic contribution, corporate social responsibility, governance, textual analysis, media.
JEL classification code: D22; G34; M14
학회 소식
공지사항
[2013년 제 4차] The Impact of Media on Corporate Social Responsibil
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2013-12-16