<b>Winners’ Dilemma: </b><b>Ho</b><b>w Serendipitously Winning from an Exogenous Crisis Affects Perceptions toward Companies’ Crisis Relief Communications</b>

During crises, companies often strategically communicate their Corporate Social Responsibility (CSR) initiatives, anticipating favorable public responses. However, our research, encompassing six studies (two detailed in the web appendix), reveals that the effectiveness of such CSR communications is significantly influenced by the company’s perceived status during the crisis. This paper presents a novel insight: companies that gain unexpectedly or serendipitously during crises might evoke negative public reactions to their crisis-relief efforts. Through diverse crisis scenarios including the COVID-19 pandemic, wildfires, and the Ukraine-Russia conflict, our studies demonstrate that these “winning” companies experience reduced consumer willingness to engage in positive word-of-mouth (WOM) and show less preference for their products and services when they communicate their CSR activities. This adverse reaction is primarily due to the public’s perception of low sincerity on the part of these companies. However, when such companies disclose their material (in-kind) donations, it mitigates the negative impact of their “winning” status on public attitudes. Importantly, we found that this negative perception applies only to companies whose winning status during a crisis is serendipitous. Conversely, companies that achieve their winning status through legitimate efforts witness positive public responses. Our findings underscore the nuanced interplay between a company’s crisis-time status, public perceptions, and the strategic communication of CSR activities..