Elsewhere online
February 12, 2015

Study: Giving Is a Reputation Boon for Scandal-Plagued Firms

Recent Stanford University research indicates that corporate philanthropy is more effective in building "reputation capital"—and boosting bottom lines—when undertaken by companies enmeshed in controversy, writes Pacific Standard, a bimonthly print magazine of social science.

The study led by Stanford business professor Ed deHaan examined more than 10,000 press releases from companies that acknowledged financial misbehavior. Researchers found that philanthropic outreach yielded more positive results for firms rebounding from reputation hits than for those giving in the absence of scandal, with share prices rising and investors rallying behind tarnished firms that undertake major do-gooder efforts.

Read a Chronicle of Philanthropy story on corporations using philanthropy to burnish their reputations.