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Mass Media Effects on Non-Governmental Organizations

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  • Mathieu Couttenier
  • Sophie Hatte

Abstract

Globalization has raised concerns that multinational companies develop commercial activities at the expense of the environment or human rights, especially in developing countries. This paper studies the communications strategies and the effectiveness of nongovernmental organizations (NGOs) in their monitoring of multinational firms’ practices. We make use of large media shocks, generated by big sports events, that decrease media coverage of firms’ practices in event host countries, and increase coverage of firms that sponsor these events. We find NGOs to respond consistently to this change in media coverage. Specifically, NGOs are more likely to disseminate information about firms sponsoring sports events, and are less likely to bring attention to firms operating in the countries hosting the events. We also find that NGOs take advantage of big sports events to increase their impact on sponsoring firms, since bad reports from NGOs about sponsors trigger a stronger negative reaction in the stock market.

Suggested Citation

  • Mathieu Couttenier & Sophie Hatte, 2015. "Mass Media Effects on Non-Governmental Organizations," Cahiers de Recherches Economiques du Département d'économie 13.01, Université de Lausanne, Faculté des HEC, Département d’économie.
  • Handle: RePEc:lau:crdeep:13.01
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    Cited by:

    1. Djourelova, Milena & Durante, Ruben, 2019. "Media Attention and Strategic Timing in Politics: Evidence from U.S. Presidential Executive Orders," CEPR Discussion Papers 13961, C.E.P.R. Discussion Papers.
    2. Koenig, Pamina & Krautheim, Sebastian & Löhnert, Claudius & Verdier, Thierry, 2021. "Local Global Watchdogs: Trade, Sourcing and the Internationalization of Social Activism," CEPR Discussion Papers 15878, C.E.P.R. Discussion Papers.
    3. Lionel Fontagné & Gianluca Orefice & Roberta Piermartini, 2020. "Making small firms happy? The heterogeneous effect of trade facilitation measures," Review of International Economics, Wiley Blackwell, vol. 28(3), pages 565-598, August.
    4. Pamina Koenig & Sandra Poncet, 2019. "Reputation and (un)fair trade: Effects on French importers from the Rana Plaza collapse," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-02350112, HAL.
    5. Julien Daubanes & Jean-Charles Rochet, 2019. "The Rise of NGO Activism," American Economic Journal: Economic Policy, American Economic Association, vol. 11(4), pages 183-212, November.
    6. Koenig, Pamina & Poncet, Sandra, 2019. "Social responsibility scandals and trade," World Development, Elsevier, vol. 124(C), pages 1-1.
    7. Garz, Marcel & Maaß, Sabrina, 2021. "Cartels in the European Union, antitrust action, and public attention," Journal of Economic Behavior & Organization, Elsevier, vol. 186(C), pages 533-547.
    8. Pamina Koenig & Sandra Poncet, 2018. "Activism and Trade," PSE Working Papers halshs-01959943, HAL.
    9. Sophie Hatte & Pamina Koenig, 2020. "The Geography of NGO Activism against Multinational Corporations," World Bank Economic Review, World Bank Group, vol. 34(1), pages 143-163.
    10. Bongsuk Sung & Sang-Do Park, 2018. "Who Drives the Transition to a Renewable-Energy Economy? Multi-Actor Perspective on Social Innovation," Sustainability, MDPI, vol. 10(2), pages 1-32, February.
    11. Milena Djourelova & Ruben Durante, 2019. "Media attention and strategic timing in politics: Evidence from U.S. presidential executive orders," Economics Working Papers 1675, Department of Economics and Business, Universitat Pompeu Fabra.
    12. Milena Djourelova & Ruben Durante, 2019. "Media Attention and Strategic Timing in Politics: Evidence from U.S. Presidential Executive Orders," Working Papers 1125, Barcelona Graduate School of Economics.
    13. Pamina Koenig & Sandra Poncet, 2019. "Reputation and (un)fair trade: Effects on French importers from the Rana Plaza collapse," Post-Print halshs-02350112, HAL.

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    More about this item

    Keywords

    Media; Information; Non Governmental Organizations; Multinational Firms;
    All these keywords.

    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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