Study Links Corporate Social Responsibility and Bad Behavior

Research by the University of California into corporate behavior suggests that companies that make a name for philanthropy and social responsibility are more likely to spend that reputational capital on business misdeeds, NPR reports.

Marketing faculty at the university’s Riverside campus analyzed the track record of 49 Fortune 500 firms on issues such as philanthropy, the environment, and labor practices and found a high score in these areas was a predictor of subsequent corporate irresponsibility.

“People are actually more likely to engage in morally questionable behavior after they have engaged in moral behavior,” said Riverside professor Elaine Wong. “So moral behavior can almost function like a type of monetary currency and you can bank this.”