BALTIMORE, July 7, 2026 — Local newspapers have long played a quiet but powerful role in corporate accountability: they scrutinize company behavior and give public visibility to good corporate citizenship. But as local newspapers continue to disappear, that accountability system weakens—and companies change how they approach corporate social responsibility (CSR).
New research published in the INFORMS journal Organization Science suggests the consequences are more nuanced than previously understood. The study, “When the Headlines Fade, the Story Goes On: Investigating How Local Newspaper Decline Affects Firm CSR Engagement,” found that the erosion of local newspapers has weakened the scrutiny or watchdog effect on corporate behaviors, while removing a channel for public recognition when those behaviors are laudable.
The findings add important nuance to debates about the societal and corporate impacts of local media decline. The loss of local newspapers prompts firms to respond differently depending on how they prioritize monitoring and recognition from newspapers, financial analysts, rating agencies, and others.
“What we found is that local newspaper decline creates a dual erosion of monitoring and visibility functions that historically have worked together,” said Jun Ho Lee of the University of Kansas, a co-author of the study. “Firms themselves don’t respond in a one-size-fits-all way. Their CSR engagement depends on the broader informational environment surrounding them.”
The researchers developed a contingency framework and examined local newspaper declines across U.S. counties from 1996 to 2014. Study authors then interviewed local journalists and corporate executives to help contextualize how firms have interpreted and navigated the changing media landscape.
“Our interviews revealed that local newspapers serve distinct community-oriented roles compared with national outlets,” said Zhiyan Wu of Zhejiang University, a co-author. “When they decline, firms turn to nonlocal intermediaries. When those substitutes are both present and active will corporations tend to sustain or increase CSR to maintain visibility and accountability.”
The study examined how firms adjust both their CSR actions and their communication of those efforts, such as press release output. When nonlocal intermediaries remain strong, firms face continued scrutiny and retain channels to broadcast positive initiatives, increasing the strategic value of CSR. So, they will continue to communicate was they did when the local newspaper was thriving. However, when such intermediaries are absent, diminished oversight and limited visibility reduce incentives, companies will turn inward.
“Local newspapers have long acted as both watchdogs and platforms for recognition,” said Michael Bednar of the University of Illinois at Urbana-Champaign, one of the co-authors of the study. “Their decline doesn’t eliminate pressures entirely but it does shift how firms balance accountability and visibility in evolving informational environments.”
The consequences extend beyond individual firms.
“Our findings suggest that the decline of local media reshapes not only what firms do but how they communicate it, with broader implications for communities and stakeholders,” Wu added. “These decisions affect not only corporate reputations but also the civic fabric that local journalism once supported.”
Firms with stronger communication capabilities and practices, such as regular distribution of news releases beyond the local newspaper were better positioned to respond strategically to the loss of traditional coverage.
For corporate executives and their communicators, for journalists, for policymakers, and for communities alike, the study findings highlight a central challenge in the modern media environment: ensuring that the decline of newspapers are not permitted to hinder the larger campaign in society to assure better corporate citizenship.
Read the full study here.
About INFORMS and Organization Science
INFORMS is the world’s largest association for professionals and students in operations research, AI, analytics, data science and related disciplines, serving as a global authority in advancing cutting-edge practices and fostering an interdisciplinary community of innovation. INFORMS empowers its community to improve organizational performance and drive data-driven decision-making through its journals, conferences and resources. Learn more at www.informs.org or @informs.
Organization Science, a leading journal published by INFORMS, publishes research on strategy, entrepreneurship, organizational behavior and innovation that informs managerial and policy decisions.
###
Contact
Rebecca Seel
Public Affairs Specialist
(443) 757-3578
Media Contact
Jeff Cohen
Chief Strategy Officer
INFORMS
Catonsville, MD
[email protected]
443-757-3565