Does Free Speech Law Contribute to Corporate Social Responsibility Behavior? Empirical Evidence
Abstract
People’s right to free speech can have profound effects on how firms discharge their social and environmental responsibilities. We examine these effects by analyzing the impact of the staggered enactment of anti-SLAPP free speech laws across U.S. states on firms’ corporate social responsibility (CSR) behavior. We theorize that, following the enactment of anti-SLAPP laws, firms enhance their CSR activities as an economically effective means to counter negative publicity from stakeholders. Supporting this idea, we find that firm CSR activity increases after the enactment of anti-SLAPP laws, accompanied by an increase in stakeholder criticism of firms’ social and environmental practices. Further, we observe an increase in the level of CSR disclosure. The link between anti-SLAPP law enactment and subsequent CSR engagement is stronger in states with more comprehensive anti-SLAPP protections than in those with weaker protections. Data Availability: From public sources identified in the study. Some may require a subscription.
- DOI
- 10.2308/tar-2023-0659
- Pages
- 1-32
- Language
- en
- Sources
- crossref