Sponsor or Donation: The Effect Factors of Corporate Reputation

Corporate reputation is an important intangible asset of a company in the fierce competitive market. Many companies improve their good image and build reputation through a series of charitable activities and other kinds of pro-social behavior. However, some researchers question whether philanthropic activities always lead to better business because the public often perceive it as a self-interested behavior, which can backfire the corporate image. Based on an attribution theory, this study tries to examine the different effect of two types of company charitable donation (conditional/ unconditional) on reputation. The results suggest that people perceive the motivation of corporate pro-social behavior differently, and the difference of the motive attribution lead to different effect of the two types of philanthropic activities, in which the effect of charitable donation on reputation stronger than that of sponsor on reputation.