Sincerity in corporate philanthropy, stakeholder perceptions and firm value

This study extends the literature on symbolic management by incorporating the role of stakeholder perceptions into the context of corporate philanthropy. In particular, we differentiate between the quantitative (generous giving) and qualitative (innovative giving) aspects of giving. We argue that although stakeholders may perceive both types of giving as being substantive rather than symbolic, innovative giving is likely to be perceived as more substantive than generous giving is and, thus, has a greater impact on firm value. Furthermore, stakeholder perceptions of corporate philanthropy as being more symbolic or substantive are influenced by firm characteristics-the type of products or services that a firm provides and the life-cycle stage that the firm is in-which provide stakeholders with a context to better assess the nature of a firm's philanthropic actions and the substantiveness of its giving. We find support for our predictions using a sample covering U.S. firms' philanthropic activities over a 19-year period

Micro-Level Interactions in Business-Nonprofit Partnerships

While most research on business-nonprofit partnerships has focused on macro and meso perspectives, this paper pays attention to the micro level. Drawing on various theoretical perspectives from both marketing and management, we conceptually relate the outcomes of active employee participation in such partnerships to consumer self-interest. We also explore empirically whether and when self-interest affects consumers’ responses towards firms in relation to business-nonprofit partnerships. The study reveals that self-interest can directly influence consumers’ behavioral responses towards firms (i.e. switching and buying intentions, and word of mouth), whereas the impact on evaluative responses in terms of attitude and trust is only weak. The fit between the firm and the nonprofit partner (company-cause fit) turns out to moderate this effect, with consumer self-interest only playing a role if fit is high. Implications for research and practice are discussed

Small but sincere: how firm size and gratitude determine the effectiveness of cause marketing campaigns

Cause-Marketing (CM) has gained momentum in recent years, both in marketing research and practice. However, while CM aims to influence consumers on an emotional or affective level, research into the emotional and affective response to CM campaigns is scarce. The current research fills this void by showing that a CM campaign is a win win win strategy. Though the tangible benefits of CM campaigns go to the firm and the philanthropic cause, our perspective is novel by arguing that the consumer benefits as well, albeit intangibly; CM campaigns provide an opportunity to do good, and hence induce feelings of gratitude in consumers. However, this effect depends on several contingencies. In particular, consumers perceive greater effort by small firms, relative to large firms, that engage in CM campaigns, leading them to assess the underlying motives as more sincere and then experience stronger feelings of gratitude for the opportunity to donate. Four experiments confirm this greater CM effectiveness for small compared with large firms. In turn, this study offers substantive contributions for both marketing research and practice: It proposes a cost-effective strategy for enhancing CM effectiveness, and specifies concrete strategies for both small and large companies.This work was supported by the Spanish Ministry of Economics [grant number ECO2017-87369-P]; and FEDER [grant number UNC315-EE-3636]

The effects of strategic corporate philanthropy on consumer perceptions: an experimental assessment

There are many objectives for corporate philanthropic activity beyond altruism. Financial gain, increased image, and thwarting negative publicity have been suggested as potential objectives for corporate giving. This dissertation develops a 2X2 classification schema as a framework for empirical investigation and managerial decision making. Additionally this dissertation examines current models of corporate philanthropy and develops a new model for the use of philanthropy in crisis management using stakeholder theory. Finally it presents experimental assessments of various types of philanthropy based on the classification schema. Philanthropic activity is assessed in the context of two controlled experiments. The first experiment examines the perceptions of African-Americans versus other ethnic groups based on philanthropic activity directed toward African-Americans versus the general population. These perceptions are also examined in the context of a crisis (after a firm has been found to be discriminatory toward African-Americans) versus a good will gesture. A second experiment will conduct a closer examination of philanthropic activity in the crisis context by replicating the crisis conditions in the first experiment with modified experimental manipulations based on the results of the first study. Results indicate philanthropy is an effective strategic option for corporate or brand image objectives, but ineffective for brand evaluation and purchase objectives. In addition philanthropy directed toward a particular segment also has a positive effect on consumers outside of that segment. Finally, philanthropy as a part of a recovery strategy appears to have a consistent but marginal effect on consumer perceptions of brand equity variables

How Does It Fit? Exploring the Congruence Between Organizations and Their Corporate Social Responsibility (CSR) Activities

Several studies have focused on the effects of corporate social responsibility (CSR) fit on external stakeholders’ evaluations of CSR activities, attitudes towards companies or brands, and behaviors. The results so far have been contradictory. A possible reason may be that the concept of CSR fit is more complicated than previously assumed. Researchers suggest that there may be different types of CSR fit, but so far no empirical research has focused on a typology of CSR fit. This study fills this gap, describing a qualitative content analysis of the congruence between six organizations and their various CSR activities. Ten annual reports and CSR reports were analyzed, and 102 specific CSR activities were identified. The results show that two levels of fit must be distinguished: based on the means for and the intended ends of the CSR activity. Furthermore, six different types of fit were found, focusing on (1) products and services, (2) production processes, (3) environmental impact, (4) employees, (5) suppliers, and (6) geographical location. Considering the above variety of fit possibilities, the findings emphasize the role of CSR communication as a means of creating fit perception

Benefits, Corporate Motives, and Communication Patterns in Strategic Philanthropic Relationships as Perceived by Nonprofit Partners

Businesses are increasingly held accountable both to their owners and to the larger society in which they operate. Accordingly, many companies are extending their resources to meet community needs through philanthropic partnerships with nonprofit organizations. Such ventures, however, have drawn close scrutiny of motives and benefits. For example, some consumers register skepticism when evaluating the sincerity of corporate intent in cause-related marketing arrangements. Attribution theory suggests that altruistic reasons for corporate good deeds may be discounted in the context of apparent self-interest. Likewise, a debate between shareholder and stakeholder theorists introduces questions about possibly conflicting obligations facing corporate managers. Some contend that good business and stakeholder accommodation do not mix. The emergence of strategic philanthropy potentially serves both interests, but little empirical study has been devoted to understanding the dynamics of such partnerships. Of particular interest is the perspective of nonprofit organizations who receive strategically motivated corporate gifts. This study used a grounded theory approach to tap the perceptions of nonprofit managers regarding these issues. Through in-depth interviews, the researcher learned that nonprofits commonly see in their partners a pattern of multiple corporate motives, with varying blends of altruism and self-interest. The largest donations were generally reported from companies expecting marketing benefits in return for their philanthropic investment. However, participants stressed that those expectations most often were unstated by the company. They described a negotiating environment in which nonprofits thoughtfully analyze potential corporate donors’ needs and then pitch mutual-benefit packages to engage them in partnership. In the most strategically driven alliances, relationships were characterized as interdependent, and benefits were viewed as approximately equal. Nonprofit managers reported that they work hard under the strategic model to obtain corporate gifts, but they also experience deeper, more satisfying relationships with their partners than in the past. Communal qualities were often described. In some partnerships, corporate motives were seen as evolving from a primarily marketing interest to an increasingly altruistic interest in the nonprofit mission. Theoretical implications and a proposed model are presented to guide further study. Observations and recommendations for corporate managers are also offered

EMPLOYEES’ PERCEPTIONS OF CORPORATE SOCIAL RESPONSIBILITY: A CASE STUDY OF AWARD RECIPIENT

Employees’ perceptions of organizational corporate social responsibility (CSR) are usually a mixture of personal experiences of internal CSR and actions that affect external stakeholders. Recent research points to numerous benefits from employees’ positive view of company’s CSR efforts, however, analyses of employees’ perceptions and attitudes are still rare. The aim of this paper is to explore employees’ perceptions of company’s behaviour towards relevant stakeholders, and the extent to which such behaviours are seen as commendable, taking into consideration the company’s reputation. Analysing CSR orientation through employees’ perceptions can help distinguish between company’s genuine CSR orientation and simple window dressing. Using a mixed method approach that combines questionnaire, interview and content analysis, this exploratory study focuses on the perceptions of employees in a company recognized for socially responsible behaviour in Bosnia and Herzegovina. The results suggest that employees perceive their company as socially responsible, but also that there are variations in perceptions depending on the stakeholder group and point out the importance of the national business system and culture in CSR evaluation. The empirical findings correspond to its public reputation and provide legitimacy for the awards received

Linking cause assessment, corporate philanthropy, and corporate reputation

This study analyzes the link between cause assessment, corporate philanthropy, and dimensions of corporate reputation from different stakeholders' perspectives, using balance theory as a conceptual framework and the telecommunications industry in Austria and Egypt as the empirical setting. Findings show that corporate philanthropy can improve perceptions of the corporate reputation dimensions, but the results vary between customers and non-customers and depend on the country setting