The influence of diversity and employee relations on corporate philanthropy and performance

Abstract

AbstractDrawing on corporate social responsibility (CSR) and diversity literatures, this study found that a diverse workforce is a driver of corporate philanthropy and that positive employee relations have a strengthening effect on the association between corporate philanthropy and firm performance. These results disclose that progressive and fair relationships between firms and their employees may be one reason why socially responsible practices have impact on financial outcomes. Findings confirm that managerial focus on building positive relationships with employees through the adoption of diversity policies and fair labor relations improves the effects of corporate philanthropy on the financial performance of firms.