ESSAYS ON CORPORATE PHILANTHROPY AFTER CORPORATE SOCIAL IRRESPONSIBLE INCIDENTS

Abstract

CORPORATE SOCIAL IRRESPONSIBILITY IS ALWAYS VIEWED AS THE OPPOSITE SIDE OF CORPORATE SOCIAL RESPONSIBILITY. RECENT STUDIES HAVE NOTICED THAT FIRMS COULD BE SOCIAL RESPONSIBLE AND SOCIAL IRRESPONSIBLE SIMULTANEOUSLY. MORE SPECIFICALLY, FIRMS MAY BEHAVE SOCIAL RESPONSIBLY TO COMPENSATE FOR THE NEGATIVE EFFECT OF CORPORATE SOCIAL IRRESPONSIBLE (CSIR) INCIDENTS. WHILE PREVIOUS STUDIES DID NOTE THE INTERESTING PHENOMENA, WE HAVE LIMITED KNOWLEDGE ON: WHICH FIRMS ARE LIKELY TO DO SO, AND, TO WHAT EXTENT, CORPORATE SOCIAL RESPONSIBILITY COULD OFFSET THE NEGATIVE EFFECT OF CSIR INCIDENTS. TO ANSWER THE RESEARCH QUESTIONS, I PROPOSE TWO INTERRELATED STUDIES TO UNDERSTAND THE DYNAMIC BETWEEN CORPORATE SOCIAL RESPONSIBILITY AND CORPORATE SOCIAL IRRESPONSIBILITY. I TESTED IN THE ARGUMENTS IN THE STUDY ONE AND THE STUDY TWO USING FORTUNE 500 DATA FROM 1991 TO 2006. THE FINDINGS IN THIS THESIS HAVE IMPLICATIONS FOR LITERATURE ON CORPORATE SOCIAL IRRESPONSIBILITY, CORPORATE SOCIAL RESPONSIBILITY, AND