Philanthropy and Corporate Reputation: An Empirical Investigation

This study investigates how two different forms of conditional corporate charitable support (purchase-based and profit-based) and two different forms of unconditional support (substantial and undisclosed amount) impact a firm’s reputation. Consumer participants were selected randomly by a professional marketing research firm that administered a telephone survey. The results indicate that consumers have favorable attitudes toward all types of corporate giving; however, more consumers have favorable attitudes toward firms that have non-purchase-based giving programs versus other forms of corporate charitable support. The study also found that more consumers have favorable attitudes toward companies that give based on profits as compared with companies that give based on purchases. In addition, if consumers believe that the firm’s primary motivation for the purchase-based giving was to benefit the charity, consumers are significantly more likely to evaluate the firm favorably.