JEL Classification: D81, G34, K22, M12, M14, M37
Keywords: Corporate Social Responsibility, Media Effects, Reputational Risk, Board of Directors
학회소식
[2022년 5차 CAFM2022]The Mitigation of Reputational Risk via Responsive CSR: Evidence from Securities Class Action Lawsuits
작성자 : 관리자
조회수 : 304
게시일 :
2022-12-20
We examine the strategic production of CSR as a post-shock damage control instrument (responsive CSR). We proxy for these shocks using securities lawsuits. Using hand-collected data to supplement our main CSR dataset, we find that responsive CSR is temporary and consists primarily of strategically placed news releases to blunt short-term effects from periodic negative news developments related to the litigation process. Firms use responsive CSR synergistically with advertising, and it is concentrated in firms headquartered in urban or liberal-leaning states that exert high ESG demands. We find that responsive CSR mostly represents window dressing – it does not add long-term value and is associated with board members that are faced with significant reputational concerns.
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