Title: Corporate social responsibility, allegation of corruption, and media sentiment

Authors: Suresh Kalagnanam; Abhilash Nair

Addresses: Edwards School of Business, University of Saskatchewan, 25 Campus Drive, Saskatoon, SK, Canada ' Indian Institute of Management Kozhikode, Kunnamangala, Kerala, India

Abstract: This study examines the two possible effects of CSR on reputation - the insurance like effect and the boomerang effect - within the context of a uniform integrity-questioning negative event through the eyes of the media. Accordingly, we tested whether prior CSR engagement prompts media to give the firm the benefit of doubt when it is accused of 'grand corruption'. We estimated media sentiment using textual analysis on 45,000 media reports covering firms allegedly involved in 'grand corruption'. The study's findings provide no evidence of CSR providing insurance like effect, particularly in the context of integrity-based negative events. In contrast, our results appear to support the idea of the boomerang effect or a punishment for irresponsible behaviour.

Keywords: corporate social responsibility; CSR; insurance-like effect; media sentiment; grand corruption; boomerang effect; textual analysis.

DOI: 10.1504/IJBGE.2024.141802

International Journal of Business Governance and Ethics, 2024 Vol.18 No.6, pp.627 - 650

Accepted: 30 Jan 2023
Published online: 02 Oct 2024 *

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