FinancialContent is the trusted provider of stock market information to the media industry.
How a Strong Record on Corporate Social Responsibility can be a Liability
In a case of no good deed going unpunished, a new working paper published by Harvard Business School finds that the media come down harder on companies with a good record on corporate social responsibility when those companies run into trouble. Excerpted from No News is Good News CSR Strategy and Newspaper Coverage of Negative Firm [...]

In a case of no good deed going unpunished,  a new working paper published by Harvard Business School finds that the media come down harder on companies with a good record on corporate social responsibility when those companies run into trouble.

Excerpted from  No News is Good News CSR Strategy and Newspaper Coverage of Negative Firm Events by Jiao Luo, Stephan Meier, and Felix Oberholzer-Gee.

One of the benefits of Corporate Social Responsibility (CSR) programs, it has been argued, is that they build up a reservoir of public good will, shielding companies in times of trouble. In this paper, we test the view that CSR provides protection from public ire by analyzing the media’s response to corporate crises. Our application is spills in the oil industry.We find the media far more likely to report accidents if they occur at a company with a superior CSR record.

Rather than acting as an effective form of insurance, our results suggest that a strong CSR record can be a liability.

Moreover, the tone of coverage is no less critical for organizations with a greener reputation. At the same time, firms with substantial past environmental problems are also more likely to find their corporate failings broadcast in the news. Companies hoping to minimize the risk of media attention to accidents need to be careful not to place their organizations at the very top or the very bottom of CSR rankings. This result has important implications for thinking about CSR and the privately optimal level of such activities.

Technorati Tags: corporate social responsibility, corporate-governance, CSR

Related Stocks:
CSR
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here
   
Financial Widgets

Display market data, financial news or stock quotes - Learn More

Advertising Network

Advertise on FinancialContent's huge network - Learn More

Web Services

Power your internet and wireless applications - Learn More