In fact you could go years shelling out money for a service you aren t using. But on the day that heaven forbid your house does burn down then you will definitely glad you invest in insurance. But does CSR insurance really pay off when companies ne that goodwill from the public In a recent working paper No News Is Good News CSR Strategy and Newspaper Coverage of Negative Firm Events.
Or Holzer Gee set out to test
The insurance hypothesis using the real world example of the largest oil companies in the Unit States. Along with Jiao Luo and Stephan Meier both of Columbia Business School Orholzer Gee collect data on several thousand oil and chemical spills most Japan Phone Number List of them thankfully quite small over a six year period from to . The researchers also collect newspaper reports over the same period to see how often companies receiv negative publicity for those spills or whether inde they earn brownie points for their superior environmental record when the inevitable accidents occurr. To get a handle on where each company fell in its CSR initiatives the researchers us stats from the corporate research firm KLD Research Analytics which rank companies on.
Environmental Strength including
Positive measures such as pollution prevention programs recycling and energy efficiency and Environmental Concern which includes negatives Italy Phone Number such as regulatory fines and emissions of toxic chemicals. A Faulty Insurance Policy those companies that had higher CSR ratings would more likely to report in the mia if a spill occurr. CSR scores garner more favorable coverage when spills were report—the researchers perform a textual analysis of the newspaper stories mining the text with software that ranks the tone of the words us in a given story.