Consumer Choices around Corporate Giving: Should Companies Prioritise Aid to the Most Effective Causes?
(R2024-122679)

AUTHORS

Aaron Shine, University of Bath; Yvetta Simonyan, University of Bath; Samuel Johnson, University of Waterloo (Department of Psychology)

ABSTRACT

Across 3 studies we find that when given the option, consumers typically prefer companies which distribute aid (i.e., donating smaller amounts to multiple social causes) over those that give entirely to one specific cause. If, however, the single cause is believed by the consumer to be the most effective (i.e., can make the greatest impact with the money it receives), the preference for a distributive approach is minimised - but it is not completely eliminated. In fact, even when it is apparent that one company is maximising the impact of their donation, people still tend to choose the option which is impartial but ultimately less effective.