Abstract: We develop an experiments to exam the effectiveness of CSR activities of companies with bad reputation. CSR activities improve a company’s image when consumers and the public attribute sincere motives, and may damage a company’s image when sincerity of motives is low or ambiguous. Variables affecting perceived sincerity include the benefit salience of the cause, the source through which consumers learn about CSR, High benefit salience of the cause hurts the company image especially when consumers learn about it from a company source.