Giving Compass' Take:

• Paul Constant argues that corporations engage in reputation-washing by giving to charitable efforts as publicity stunts and to profit from tax-deductions.

• How can donors and communities increase corporate accountability to create real change rather than publicity stunts? Can closing tax loopholes help?

• Read more about the double-edged sword of corporate giving.

Through philanthropy, Giridharadas warns in the latest episode of Pitchfork Economics, the wealthiest people and corporations on the planet "can do bad things in the billions and do good things in the millions."

Perhaps the clearest — and, to my mind, the most egregious — form of corporate philanthropy comes in "reputation-washing." Corporations do this all the time: they contribute some small (but very visible) amount of money toward the solution for a problem that they themselves have created in the hunt for outsize profits.

You can't get much more stereotypically American than Coca-Cola. The sugary beverage-maker has for decades worked to hide its clear connection to obesity, while at the same time supporting youth sports initiatives and building playing fields for young women in underserved communities. This giving serves as a smokescreen on two fronts: in addition to creating a general air of concern about public health, it also advertises Coca-Cola products to children — a practice that Coke has sworn not to do.

Exxon earlier this year was proud to issue a press release announcing it has donated $350,000 "to United Way and the American Red Cross to support local flooding relief assistance associated with tropical storm Imelda in the Beaumont and greater Houston areas in Texas" — a terrible storm that was worsened by climate change caused by fossil fuels.

The value that these corporations enjoy from philanthropy doesn't just end at good press and positive consumer feelings. Even though reputation-washing is the equivalent of putting a Band-Aid on top of a broken bone, corporations profit from the tax deductions they earn in exchange for their charitable giving. It's time to begin a public discussion about ending or capping the tax-deductible loopholes that corporations ruthlessly exploit for profit and public relations.

Read the full article about how corporations profit from reputation-washing by Paul Constant at Business Insider.