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 2 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. Keywordscorporate philanthropy, corporate reputation, corporate social performance, signal detection theory Corporate giving is becoming big business and a major strategic issue for firms as they increasingly position themselves as socially responsible organizations. In 2014, Walmart and its foundation distributed over US $1.4 billion in in-kind donations and grants around the world.Whether corporations can benefit from philanthropic activities has consequently received increasing attention from managers and researchers (Saiia, Carroll, & Buchholtz, 2003). A 2008 Conference Board survey found that the principal management issue for most respondents was measurement of the outcomes of their firm's philanthropic activities (Cavicchio & Torok, 2008).The sensitivity to corporate giving's outcomes is also reported in (Maas & Liket, 2011) who found that between 62% and 76% of firms listed in the Dow Jones Sustainability Index (DJSI) measured the effectiveness of their philanthropic activities. In order to aid both firm managers and scholars in their quest to identify how corporations can benefit from philanthropic activities, we propose that it is essential to understand corporate philanthropy's influence on the firm's reputation for social performance. 3Understanding corporate philanthropy's effect on the firm's reputation for corporate social performance (CSP) is important for many reasons. Studies have long contended that a reputation for CSP is a significant determinant of many positive organizational outcomes, such as overall reputation (Brammer & Millington, 2005;Fombrun & Shanley, 1990), organizational attractiveness to potential employees (Greening & Turban, 2000; Lin et al., 2012;Turban & Greening, 1997), favorable corporate evaluations and product impressions from consumers (Brown & Dacin, 1997; Lii & Lee, 2012), and partial buffering from scandal revelations (Janney & Gove, 2011). Moreover, in the extensive literature investigating the effect of CSP on financial performance (Griffi...
In this paper, we investigate the impact of internationalization on the corporate social performance (CSP) of extractive industry firms (EIFs). We argue that internationalization positively impacts their CSP because, as they internationalize, they increasingly benefit from actions that help them enhance their social licenses to operate (SLOs) and hence have a greater need to increase both the overall social (SP) and environmental (EP) aspects of their CSP. We hypothesize that as EIFs internationalize, both their SP and EP grow; that SP grows more relative to EP; and that the level of development of EIFs' home countries moderates these relationships.
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