One seeming solution to this signaling problem is simply to donate money to charity with no strings attached, and then inform stakeholders after the fact. First, we suggest shifting from a contingent strategy (“you act and we donate”) to a no-strings strategy (“we donate regardless”). And the benefits did not end there: Giving customers a vote also increased their likelihood of signing up for a yearly membership in the buyers club. In other words, involving customers in giving decisions changes their behavior toward the company in both the short and long term. As corporate-charitable partnerships proliferate, these small shifts in strategy have the potential to benefit companies and charities alike.

Source: Wall Street Journal March 27, 2017 02:38 UTC