Short Summary 

This study, published in the Journal of Management Studies, explores a perplexing question: why don’t newspapers consistently deter corporate illegality, even when they appear to show their strong presence in the society? Analyzing data from over 1,500 firms across 29 countries between 2005 and 2014, the researchers use a framework known as institutional anomie theory to examine when and why newspapers fail to hold corporations accountable due to their institutional circumstances. The study begins by acknowledging newspapers’ role in socializing and controlling firms so that they become more socially responsible, rule-abiding citizens. Then, while one might expect that broader newspaper readership (newspaper reach) would strengthen such a role with higher attention and support from the public, the reality proves to be far more complex. The study finds that the reinforcing effect of broader newspaper reach to the public can be completely nullified in environments where there is strong cultural pressure to succeed and where economic forces significantly influence the media. In other words, reaching a larger population does not automatically guarantee that newspapers successfully control corporate illegality, or any action that violates administrative, civil or criminal law, such as regulatory violations, workplace exploitation and fraud. 

When Economic Interests Override Everything Else 

The study grounds its inquiry in institutional anomie theory. Originally developed in criminology, this theory suggests that crime and misconduct rise when economic institutions (such as capitalism and profit maximization) dominate at the expense of non-economic institutions (like family, education, and media), which traditionally help shape norms of acceptable behavior. For example, schools function as non-economic institutions that teach civic responsibility and respect for rules, guiding students to become honest, rule-abiding members of their communities. However, capitalistic influences—such as corporate sponsorships and privatization—undermine this norm-setting role by making students overly performance-oriented and willing to use any means necessary for success. This shift fosters tendencies that may lead them toward criminal behavior. While the framework was initially applied to individual crime, this study demonstrates that it also offers powerful insights into corporate illegality by identifying system-level conditions that foster misconduct. 

When Newspapers Lose Their Influence 

This study investigates the tension between economic dominance and the media’s role in deterring corporate illegality by drawing on both firm- and country-level data from sources such as Thomson Reuters, the World Bank, the World Association of News Publishers, Freedom House, and the Varieties of Democracy Project. In analyzing newspaper reach, the study focuses on traditional print newspapers, as changes in their readership had the most profound impact on corporate behavior. The findings show that wider newspaper reach only modestly reduces corporate illegality because this deterrent effect is significantly weakened under two key conditions: 

• Strong cultural pressure to succeed: In such societies, corporate behavior is increasingly judged through an economic lens rather than a moral one, resulting in greater tolerance for rule-breaking if it is economically advantageous. Even when newspapers reach larger audiences and illustrate how certain corporate behaviors are problematic and what sanctions are or should be imposed, firms are not necessarily motivated to curb illegal actions because the generally muted public response to illegality undermines the newspapers’ influence. 

• Economic penetration of the media: In societies where capitalistic values more easily infiltrate the operation of media, newspapers often prioritize profitability—shifting from costly accountability journalism to more lucrative clickbait content—and face conflicts of interest due to their financial ties with corporations. Under such circumstances, reaching a larger population hardly strengthens newspapers’ norm-setting role because that role has already been internally weakened. 

Interestingly, firms with a strong shareholder orientation did not behave differently in response to higher newspaper reach. The influence of economic institutions was so pervasive that it could completely nullify newspapers’ ability to curtail corporate illegality. 

Conclusion 

This study highlights a fundamental tension within modern capitalism: the very economic forces that drive business growth can simultaneously erode the institutions meant to keep corporate power in check. As societies increasingly prioritize economic success and as media becomes more commercialized, traditional checks and balances weaken. In this context, the so-called “newspaper crisis” is not merely about declining subscriptions or newsroom closures—it reflects a deeper structural issue: an economic environment that makes it harder for journalism to function as an effective watchdog. 

To address this crisis, societies must go beyond simply saving newspapers and confront the broader forces that undermine their ability to hold corporations accountable. They may encourage gradual cultural shifts that restore non-capitalistic values, making the public more sensitive to moral infringements. The degrowth movement in Europe is a good example of societies attempting to control the growing demand for material affluence by promoting modified cultural behaviors. Similarly, as seen in Japan’s New Form of Capitalism policy, national governments can shift the focus of the market from being purely profit-based to more human-centric. 

Societies may also establish rules that protect the traditional functions of newspapers from aggressive investors. France, for instance, legally limits excessive concentration in media ownership by restricting single investors from controlling entities across different types of media, such as press and television. It also features media outlets whose ownership is structured as nonprofit trusts, ensuring protection from acquisition by outside investors. When these favorable conditions are combined with the reinvigoration of newspapers, media organizations may be more likely to become socially responsible members of society.