A firm’s action determines the type of media coverage it receives. For example, good CSR firms, in general, get favorable and positive media coverage. Through Cahen, Chen, and Chen’s detailed research, it is true that there is a causal relationship between CSR performance and favorability of media coverage. So, a way to maximize firm performance is to do CSR-related activities in order to boost a firm’s media image, and a firm with a better reputation is known to attract more customers. Also, a better media image resulted in higher firm value.

I agree with the authors’ findings because I believe news influence people’s view toward a company. For example, if I switch on the TV and found out that a company was donating money or helping the environment, I would more likely buy their products. But, if a firm is involved in some shady business, I would not be their customer. So, media coverage has its advantages and disadvantages. But, a company that is socially responsible will become more and more popular through reporting of the business press. In conclusion, almost all firms benefit from good media coverage, and to get that advantage, firms should have CSR.  

Reference: Cahan, Steven F., Chen, Chen, Chen, Li, & Nguyen, Nhut H. (2015). Corporate social responsibility and media coverage. Journal of Banking & Finance, 59, 409.