Media, Partisan Ideology, and Corporate Social Responsibility

Abstract

We study the impact of partisan media on CSR ratings using the staggered expansion of Sinclair Broadcast Group, the largest conservative regional TV network. After Sinclair entry, CSR ratings of local firms decline across all dimensions: environmental, social, and governance. The effect operates through two mutually non-exclusive channels: shifts in ideology and reduction in local coverage. We provide evidence consistent with the first channel based on public opinion surveys, election results, and firms' political contributions. Consistent with the second channel, the effect is stronger for firms with higher customer awareness, low institutional ownership, in sin industries, and in Sinclair-dominated markets. 

Keywords: corporate social responsibility, partisan media, political ideology

JEL Classification: G34, D72, L82, M14