An Empirical Study on the Influence Mechanism of Charitable Donations of Small and Medium-sized Enterprises on Corporate Reputation in Sichuan, China

Abstract

Corporate reputation would be an essential intangible asset of an enterprise. A good corporate reputation could bring many high-quality resources to the enterprise, thereby effectively improving its competitiveness. As a company, charitable donations, the most important manifestation of fulfilling social responsibilities, could receive more and more attention. Charitable contributions made by companies would affect the reputation of the company to a certain extent. In theory, corporate reputation as a signal could solve the problems faced by companies to a certain extent. A good reputation could usually bring higher performance to the company and could also be used as a signal to reflect corporate value. This study analyzed the Sichuan SMEs’ policy on charitable donation. It investigated three significant objectives with challenges SMEs faced in coping with local corporate reputation, utilizing influencing factors of operational advantages, and suggesting improvement on corporate reputation.