Motivated by the need for a deeper understanding of the factors and processes through which consumers evaluate corporate giving, this paper examines the role of perceived effort in the formation of consumers’ motive attributions. Guided by attribution theory and the augmentation principle, three studies are put forth to demonstrate how the type, nature and source of giving influences consumers’ perception of effort and ultimately, their evaluation of the firm. Results show that donation type, time versus money, differentially influence consumers’ attitude toward the firm via serial mediation. Specifically, corporate donations of time (compared to money) lead to higher levels of perceived effort, which then induce more altruistic motive attributions. We also find that the effect of donation type on perceived effort is moderated by consumers’ perception of the relative cost of the donation to the firm.

Introduction

For many organizations today, the common good has become common practice. A survey by America’s Charities finds that a full 60% of companies offer year-around giving, up from 24% in 2013 (America’s Charities, 2015). These changes are also reflected in the amount of giving, with corporate donations to charities exceeding $18 billion in 2016 (Charity Navigator, 2017). In recent years, the nature of corporate giving has begun to change. Corporate philanthropy, whereby a corporation donates a portion of its resources to a societal cause, has become more focused and strategic in its execution (Gautier & Pache, 2013). Google for example sought to foster innovation by awarding a $1.5 million-dollar donation to Code for America (Govtech, 2011). More recently, car manufacturers, energy firms and tech companies have begun to donate to causes that support STEM education in an effort to bolster the future supply of skilled workers (Insidephilanthropy, 2016). While monetary donations remain the most prevalent form of giving, donations of time in the form of corporate volunteerism has also emerged as a common means of corporate philanthropy (Philanthropy, 2012).