Opportunity Platforms and Safety Nets: Corporate Citizenship and Reputational Risk

Abstract

It is argued that no simple correlation can be established between corporate social performance and corporate financial performance. The activities that generate CSP do not directly impact the company's financial performance, but instead affect the bottom line via its stock of reputational capital - the financial value of its intangible assets. It is suggested that corporate citizenship programs can be designed to help companies address reputational threats and opportunities to achieve reputational gains while mitigating reputational losses.

Keywords: Corporate citizenship, corporate social responsiblity, reputational capital

JEL Classification: M14