Your mother probably told you that it pays to be nice, but that may not necessarily be true when it comes to corporate philanthropy.
Wharton finance professor Vinay B. Nair and two other researchers looked at whether being charitable -- such as donating money to medical research or to organizations that promote economic self-sufficiency -- helps a company's financial picture. They concluded that it all depends on the type of industry.
"Corporate philanthropy and profits are positively related only in industries with high advertising intensity and high competition," the researchers say, citing as examples the beverage and retail industries. In low-advertising industries, such as computer chips and business-to-business services -- "there is actually a negative association between philanthropy and profits."
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