Virtuousness Is Necessary for Genuineness in Corporate Philanthropy

Abstract

This article comments on P. C. Godfrey's article, "The Relationship Between Corporate Philanthropy and Shareholder Wealth: A Risk Management Perspective." The author feels that Godfrey's approach suggests that the perception of genuineness is necessary for any relationship between moral capital and corporate philanthropy. An organization's responsiveness to the needs of its stakeholders does not necessarily indicate that they are genuine in their motives. The author notes that a stakeholder's assessment of a firm and their motives may shape their future dealings with that firm.