U.S. Small Business’s Philanthropic Contribution to Local Community: Stakeholder Salience and Social Identity Perspectives

Abstract

ABSTRACTThis study investigates relational attributes that explain small-business owners’/managers’ philanthropic contribution to their local community. Drawing on the theory of stakeholder salience and the social identity theory, we consider two facets of small-business–local-community relationship: a relationship with the local community as a stakeholder and a relationship with the local community as a social category that they belong. Data from 202 small-business owners/managers in the United States yielded support for the stakeholder salience and social identity perspectives. The results showed that the owners’/managers’ perception of legitimacy and urgency of local community’s claim and their social identity as a community member were important determinants of the small businesses’ philanthropic contribution. The findings provide strategic implications for local governments, civic organizations, and community authorities about managing the relationship with Small Business, Stakeholder salience, social identity, CSR, local community.