Abstract
In the past, the research on corporate charitable donations has been studied from the strategic motivation and political motivation of enterprises. From the perspective of instrumental motivation, under the China’s policy background of strengthening environmental protection, the study takes listed manufacturing companies in China as a sample to analyze the impact of the enterprises’ environmental performance on corporate donations. The study found that the environmental performance of enterprises has a positive impact on the charitable donations of enterprises. The worse the environmental performance of enterprises, the less inclined they are to make charitable donations. Through further research, it is found that enterprises with poor environmental performance will have worse corporate performance. In this situation, charitable donation will further strengthen the impact of environmental performance on corporate performance, that is, charitable donation by enterprises with poor environmental performance will lead to worse corporate performance. This may also be an explanation that companies with poor environmental performance are less inclined to make charitable donations.
Highlights
As an evolving emerging economy, China has experienced the savage development at the expense of the environment
Charitable donation will further strengthen the impact of environmental performance on corporate performance, that is, charitable donation by enterprises with poor environmental performance will lead to worse corporate performance
Based on the theory of reputation, this paper studies whether the enterprises with poor environmental performance will carry out charitable donation activities to avoid the negative impact of poor environmental performance on the company, which would be motivated by the purpose of risk prevention under the pressure of environmental supervision
Summary
As an evolving emerging economy, China has experienced the savage development at the expense of the environment. The Chinese government has emphasized the importance of environmental protection for economic development in the relationship between the environment and the economy. Based on the theory of reputation, this paper studies whether the enterprises with poor environmental performance will carry out charitable donation activities to avoid the negative impact of poor environmental performance on the company, which would be motivated by the purpose of risk prevention under the pressure of environmental supervision. From the perspective of legality theory and reputation theory, this paper made an incremental research on the instrumental motivation of corporate charitable donation behavior, enriched and expanded the analyses of the non-market strategic motivation of enterprises in the context of transitional economy.
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