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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