We document a significant positive correlation between a publicly listed firm's actual controller being named to the prestigious Hurun Rich List (the Rich List) and an increased commitment to corporate social responsibility (CSR) by the firm. Our analysis suggests that the Rich List inclusion intensifies media scrutiny, which in turn motivates rich list-listed firms to proactively enhance their CSR performance as a strategic response to mitigate potential reputational risk. These findings are robust to a series of robustness checks. Further cross-sectional analyses reveal that the positive effect on CSR is more pronounced when the actual controller achieves a top ranking on the Rich List, appears on the list multiple times, or is subject to substantial negative media coverage. Moreover, we find that following the inclusion of a firm's actual controller in the Rich List, there is a noticeable decrease in the likelihood of subsequent regulatory violations and investigations. This reduction can be directly linked to the increased focus on CSR engagement by the rich listed firms. Our study provides novel insights into the drivers of corporate social responsibility, highlighting the disciplining role of media attention.
Huang et al. (Sun,) studied this question.