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Mass media effects on non-governmental organizations

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  • Couttenier, Mathieu
  • Hatte, Sophie

Abstract

Globalization has raised concerns that multinational firms develop commercial activities at the expense of the environment or human rights, especially in developing countries. As firms' practices are not fully observable by stakeholders, NGOs have applied pressure on firms by organizing information campaigns. This paper studies how media coverage affects how effective NGOs are in monitoring firms. We make use of large media shocks, generated by big sports events, that crowd out media coverage of firms' practices in event host and participant countries, and increase coverage of sponsors. We find NGOs to respond consistently. NGOs are more likely to disseminate critical coverage of firms sponsoring sports events, and are less likely to spotlight firms' practices in the event host and participant countries. We also find that NGOs take advantage of sports events to increase their impact on sponsors, since campaigns about sponsors trigger a significant negative reaction in the stock market.

Suggested Citation

  • Couttenier, Mathieu & Hatte, Sophie, 2016. "Mass media effects on non-governmental organizations," Journal of Development Economics, Elsevier, vol. 123(C), pages 57-72.
  • Handle: RePEc:eee:deveco:v:123:y:2016:i:c:p:57-72
    DOI: 10.1016/j.jdeveco.2016.07.001
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    Cited by:

    1. Lionel Fontagné & Gianluca Orefice & Roberta Piermartini, 2016. "Making (Small) Firms Happy. The Heterogeneous Effect of Trade Facilitation Measures," Working Papers 2016-08, CEPII research center.
    2. repec:gam:jsusta:v:10:y:2018:i:2:p:448-:d:130958 is not listed on IDEAS
    3. Julien Daubanes & Jean-Charles Rochet, 2016. "The Rise of NGO Activism," CESifo Working Paper Series 5891, CESifo Group Munich.
    4. Sophie Hatte & Pamina Koenig, 2017. "The Geography of NGO Activism against Multinational Corporations," PSE Working Papers halshs-01518148, HAL.
    5. Julien Daubanes & Jean-Charles Rochet, 2017. "The Rise of NGO Activism," Swiss Finance Institute Research Paper Series 17-40, Swiss Finance Institute.

    More about this item

    Keywords

    Media; Information; Non-governmental organizations; Multinational firms;

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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