This paper empirically examines how winning CSR awards can influence corporate misbehavior. This paper uses award-winning firms identified through major media sources to measure CSR winners. We conjecture that award-winning firms, who have attracted increased public attention and gained trust and reputation, alter their wrongdoing decisions. We show that firms’ misbehaviors are significantly associated with the effect of CSR winners, including three possible channels: financial restatement, financial distress, and other negative misbehavior. Further, the relationship between CSR awards and corporate wrongdoing is more pronounced for firms winning their first CSR award.
