Social capital and business giving to charity following a natural disaster: An empirical assessment

Abstract

This study examines the participation of local businesses in disaster relief efforts in their own communities. We utilize a unique survey of 463 businesses in Pitt County, North Carolina, collected shortly after devastating flooding caused by Hurricane Floyd. Our results indicate that managerial social capital especially through religious participation is positively related to provision of assistance to employees as well as making cash contributions and the value of cash donations. Manager ties to civic organizations positively predict in-kind donations including temporarily loaning vehicles and equipment to relief efforts. Local branches of national chains were less likely than locally owned franchises to provide assistance to employees and less likely than independent local businesses to provide in-kind contributions. We do not find evidence that business charitable giving is affected by the number of years the business operated in the community or the number of years the owner or manager has lived in the area.