Corporate philanthropy, criminal activity, and firm reputation: Is there alink?

This study examined the influence of corporate giving programs on the link between certain categories of corporate crime and corporate reputation. Spe cifically, firms that violate EPA and OSHA regulations should, to some exte nt, experience a decline in their reputations, while firms that contribute to charitable causes should see their reputations enhanced. The results of this study support both of these contentions. Further, the results suggest that corporate giving significantly moderates the link between the number o f EPA and OSHA violations committed by a firm and its reputation. Thus, whi le a firm's reputation can be diminished through its violation of various g overnment regulations, the extent of the decline in reputation may be signi ficantly reduced through charitable giving.