Using corporate social responsibility to enhance media reputation following a firm crisis: Evidence from China

Abstract

This article extends research on organizational crisis management by explaining how a firm’s post-crisis corporate social responsibility (CSR) actions help it secure improved media reputation which, in turn, plays an important role in rebuilding the firm’s image. We draw on Godfrey et al. (2009) to highlight that firms’ CSR activity can be categorized into two types: Technical CSR (TCSR) activity involving those primary stakeholders most crucial to the successful operation of the firm, and Institutional CSR (ICSR) activity directed toward a firm’s secondary stakeholders. Our study examined 176 crises that occurred in China between 2011 and 2018 and involved 161 publicly listed firms. The analysis demonstrated that the intensity of both TCSR and ICSR activities have a positive effect on post-crisis media reputation. The implementation paths of CSR activities from TCSR to ICSR contributes positively to post-crisis media reputation. Our findings also show that the concentration of TCSR activities negatively affects a firm’s post-crisis media reputation, while the concentration of ICSR activities has the opposite effect. Furthermore, in a firm crisis with high-responsibility attribution, the effects of both the intensity and concentration of TCSR activities are more pronounced, while the impact of the concentration of ICSR activities is weakened. This study provides new theoretical insights into how firms can better manage their media reputations following a crisis.