This study analyzes the link between cause assessment, corporate philanthropy, and dimensions of corporate reputation from different stakeholders’ perspectives, using balance theory as a conceptual framework and the telecommunications industry in Austria and Egypt as the empirical setting. Findings show that corporate philanthropy can improve perceptions of the corporate reputation dimensions, but the results vary between customers and non-customers and depend on the country setting.
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For more details, see the 2012 CSR RepTrak 100 Study (Reputation Institute 2012b).
A different question would address whether companies should engage in CP only in order to enhance their reputation, or if CP can be considered a moral/societal duty. While this is an important issue for debate, this paper does not pursue this argument.
Egypt is a collectivist society, while Austria an individualist society. Especially on the humane orientation (society practices) dimension, Egypt scores highly compared to Austria (4.73 and 3.72, respectively). Humane orientation is defined as “the degree to which an organization or society encourages and rewards individuals for being fair, altruistic, friendly, generous, caring, and kind to others” (House et al. 2004: 569). In these societies, people are responsible for promoting the well-being of others (the state is not actively involved). In contrast, on the humane orientation society values (should be) dimension Austria scores highly (5.76) compared to Egypt (5.17). This indicates that Austrians aspire to a greater humane orientation. Austria is classified in band A, which includes countries with the highest scores on the construct. Egypt belongs to band C (among countries with low scores on the construct).
At the time of this study, the Austrian telecommunications company had recently been awarded the Austrian Sustainability Reporting Award, while the Egyptian telecommunications company was a member of the Dow Jones Sustainability Index.
For ACP we find glb = 0.96, alpha = 0.9, for Customer Orientation glb = 0.82, alpha = 0.82, for Good Employer glb = 0.76, alpha = 0.76, for Reliable and Financially Strong Company glb = 0.74, alpha = 0.73, for Product and Service Quality glb = 0.73, alpha = 0.72, and for Social and Environmental Responsibility glb = 0.71, alpha = 0.7.
Concerning the recent corruption scandal of the Austrian telecommunications company.
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Szőcs, I., Schlegelmilch, B.B., Rusch, T. et al. Linking cause assessment, corporate philanthropy, and corporate reputation. J. of the Acad. Mark. Sci. 44, 376–396 (2016). https://doi.org/10.1007/s11747-014-0417-2
- Corporate philanthropy
- Corporate reputation
- Balance theory