Giving After Disasters

Publication Date: January 01, 2019

Although the global cost of natural disasters has increased sharply, traditional sources of funding–governments, nonprofits, and NGOs–have not kept pace. Corporations have taken up the slack, prompting researchers to ask: Does it matter whether the companies pitching in have local ties? And are they and their shareholders benefiting? The resulting studies show that countries with a large share of aid from locally active companies get help more quickly than their counterparts and recover more fully, and that the business impact of donations varies according to firm reputation rather than the amount donated. In particular, if the first donor is well regarded, that company and others that make similar donations stand to gain–but if the first donor has a poor reputation, it and others that follow suit will see a dip in local revenue that can’t be explained by the impact of the disaster alone.

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Giving After Disasters

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