Corporate reputation and an insurance motivation for corporate social investment

Stephen Brammer, Stephen Pavelin

Research output: Contribution to journalArticlepeer-review


This paper explores an under-researched motive for corporate social investment (CSI): that of insurance. Building on a paper by Godfrey (2005), we argue that social investment insures companies against stakeholder reactions to socially irresponsible acts. We offer predictions regarding the distribution of insurance-motivated social investment across firm characteristics, and highlight the possibility that this form of insurance drives firms towards greater social irresponsibility. Thus, we argue that the overall impact on social welfare of insurance-motivated social investment is ambiguous. An exploratory analysis shows the pattern of charitable giving among large UK companies to be broadly consistent with an insurance motivation for such expenditures, and we discuss a case study that is indicative of an insurance function for CSI.
Original languageEnglish
Pages (from-to)39-51
Number of pages13
JournalThe Journal of Corporate Citizenship
Issue number20
Publication statusPublished - 2005
Externally publishedYes


  • Corporate philanthropy
  • Corporate reputation
  • Corporate social investment


Dive into the research topics of 'Corporate reputation and an insurance motivation for corporate social investment'. Together they form a unique fingerprint.

Cite this