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How Does Corporate Giving Pay?

Can corporate giving fix a damaged reputation?

This is a summary of the Top 3 research findings on the business benefits of corporate giving.

1. Recognize corporate giving does not excuse past social irresponsibility.

In the same study, firms saw better financial return when they used money to manage their own hardships in difficult economic times rather than donating to others.

2. Manage crises effectively before spending on charity.

In a study of Fortune 500 firms, companies with bad reputations that donated to Hurricane Katrina experienced no significant stock price returnsor reputational improvements.

3. Build a good reputation in the first place.

In a sample of 108 firms involved in the U.S. stock options backdating scandal, those with socially responsible reputations saw price drops of 1.3 per cent less than socially irresponsible firms.

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  • Lauren Turner

    Lauren completed a Bachelor of Health Sciences and a Master’s in Environment and Sustainability at Western University. She interned with the Network for Business Sustainability as part of the MES program, and continued to edit and contribute content to the network in the years following. She later completed a Master’s in Insurance and Risk Management from the MIB School of Management in Italy, where she focused on environmental risk mitigation strategies in the face of changing market sentiments towards low carbon. Lauren has worked primarily in the non-profit and higher-ed sectors in Toronto and London over the past decade. Her work has revolved around corporate social responsibility in mining and minerals governance, stakeholder engagement, project and program management, and writing/editing for corporate audiences. Her writing has focused on the intersection of sustainability and finance, access to capital, investor risk, consumer behaviour, and sustainable marketing. She is interested in conversations around how industry can hedge against risk and benefit financially from improving the sustainability of their operations.

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