Abstract
From economic and psychological perspectives, charitable giving plays an important role in our society. However, the importance and implications of organizational level charitable giving, or strategic philanthropy, are often overlooked. Corporate strategic philanthropy, in fact, is conceived not only to contribute benefits to charitable causes, but also to improve firm image and financial performance as a competitive advantage source. According to the market strategy theory, corporate strategic philanthropy may help the firm to maintain and expand their customer base, to develop stronger social ties with its stakeholders, and to promote mutual trust and commitment in the community. In addition, when a firm emphasizes strategic philanthropy, the image of the product, brand, and/or the firm is enhanced in the local communities receiving the charities. Importantly, strategic philanthropy may result in higher levels of employees’ self-esteem, morals, and organizational commitment within the firm itself.KeywordsOrganizational CommitmentCustomer Relationship ManagementMutual TrustRelationship MarketingSocial Exchange TheoryThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
Published Version
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