Disaggregating Corporate Philanthropy: The Impact of Individual Dimensions on Customer-Based Corporate Reputation

Abstract

Corporate philanthropy (CP) is gradually taking up a more prominent position in business strategy. For companies, it offers a way to demonstrate social responsiveness, which may eventually lead to enhanced reputation (Brammer and Millington 2005, Luo and Bhattacharya 2006). Consumers’ growing expectations of the role of business in society have further intensified the importance of CP. Related marketing research indicates that socially responsible activities often have a positive effect on consumers (Sen and Bhattacharya 2001). In this context, Hillenbrand and Money (2009) stress the need for understanding consumer expectations in relation to corporate responsibility and the impact of CP on reputation. Both are important, since companies’ “citizenship activities” account for some 13% of their overall reputation as rated by consumers (Global Reputation Pulse 2010).