The Impact of Corporate Philanthropy on Reputation for Corporate Social Performance
Journal
Business and Society
Date Issued
July 2019
DOI
10.1177/0007650317694856
Abstract
This study seeks to examine the mechanisms by which a corporation’s
use of philanthropy affects its reputation for corporate social performance
(CSP), which the authors conceive of as consisting of two dimensions: CSP
awareness and CSP perception. Using signal detection theory (SDT), the
authors model signal amplitude (the amount contributed), dispersion (number
of areas supported), and consistency (presence of a corporate foundation) on
CSP awareness and perception. Overall, this study finds that characteristics
of firms’ portfolio of philanthropic activities are a greater predictor of CSP
awareness than of CSP perception. Awareness increases with signal amplitude,
dispersion, and consistency. CSP perception is driven by awareness and
corporate reputation. The authors’ contention that corporate philanthropy
is a complex variable is upheld, as we find that CSP signal characteristics
influence CSP awareness and perception independently and asymmetrically.
The authors conclude by proposing avenues for future research.
use of philanthropy affects its reputation for corporate social performance
(CSP), which the authors conceive of as consisting of two dimensions: CSP
awareness and CSP perception. Using signal detection theory (SDT), the
authors model signal amplitude (the amount contributed), dispersion (number
of areas supported), and consistency (presence of a corporate foundation) on
CSP awareness and perception. Overall, this study finds that characteristics
of firms’ portfolio of philanthropic activities are a greater predictor of CSP
awareness than of CSP perception. Awareness increases with signal amplitude,
dispersion, and consistency. CSP perception is driven by awareness and
corporate reputation. The authors’ contention that corporate philanthropy
is a complex variable is upheld, as we find that CSP signal characteristics
influence CSP awareness and perception independently and asymmetrically.
The authors conclude by proposing avenues for future research.
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