The Relationship Between Corporate Philanthropy And Shareholder Wealth: A Risk Management Perspective

Abstract

I present a complex theoretical explanation that draws on multiple bodies of literature to present an academically rigorous version of a simple argument: good deeds earn chits. I advance/defend three core assertions: (1) corporate philanthropy can generate positive moral capital among communities and stakeholders, (2) moral capital can provide shareholders with insurance-like protection for a firm's relationship-based intangible assets, and (3) this protection contributes to shareholder wealth. I highlight several managerial implications of these core assertions.

Cite this

Paul C. Godfrey (2005). The Relationship Between Corporate Philanthropy And Shareholder Wealth: A Risk Management Perspective. Academy of Management Review. https://doi.org/10.5465/amr.2005.18378878

@article{c2005the,
  title  = {The Relationship Between Corporate Philanthropy And Shareholder Wealth: A Risk Management Perspective},
  author = {Godfrey, Paul C.},
  year   = {2005},
  journal = {Academy of Management Review},
  doi    = {10.5465/amr.2005.18378878}
}

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