Abstract: We propose a new mechanism explaining why companies may keep quiet about their positive corporate actions such as socially responsible activities. Building on and extending the legitimacy and justice literatures, we argue that concerns about stakeholder backlash may cause firms to keep quiet about their social acts. In particular, we examine strategic silence in the context of corporate philanthropy. We argue that negative reactions to a firm’s philanthropy are likely attributable to primary stakeholders that feel the firm is not meeting their legitimate claims. Conversely, community stakeholders are likely to have positive perceptions of philanthropy that helps mitigate their existing concerns. Using data from listed Chinese firms, we show that firms are more likely to give quietly when they underpay employees and investors. On the other hand, firms that mistreat community stakeholders are less likely to keep quiet about their donations.

Lecturer：Heli Wang is Janice Bellace Professor of Strategic Management in the Strategy & Organization group at Singapore Management University. She received a Ph.D. in Strategic Management from the Ohio State University. Prior to joining SMU, she was an assistant and then associate professor at Hong Kong University of Science and Technology. Her research focuses on the resource-based view of the firm, strategic human capital, stakeholder management, and corporate social responsibility. She has previously served as a consulting editor of Management Organization Review and an associate editor of Academy of Management Journal. She is currently serving as an associate editor of Academy of Management Review.