Corporate Philanthropy Research Articles

Does an increase of board compensation boost the corporate philanthropy: an empirical study

Does an increase of board compensation boost the corporate philanthropy: an empirical study

Effect of government's environmental attention on corporate philanthropy based on the institutional theory: Evidence from China's heavily polluting companies.

The underlying motivation behind corporate philanthropy (CP) is subject to multiple interpretations. For emerging markets, traditional interpretations based on a perspective of interest exchange often fall short. The institutional environment in China is characterized by uncertainty, particularly in the field of environmental protection, where the government's attention, a scarce institutional resource, can influence the behaviors of heavily polluting companies. The government's environmental attention (GEA) may be subject to campaign-style investment, which provides an opportunity for research. This study attempts to use institutional theory to construct a difference-in-differences model using the Central Inspection of Environmental Protection as an exogenous shock. It examines the causal impact of GEA on CP, observing that GEA has a positive effect on CP, especially for large companies, companies in less competitive industries, companies located in high-pollution areas, and companies with high environmental expenditure. The results indicate that campaign-style institutional changes provide a non-transactional political motivation for CP. In addition, we discuss the mechanism, which is the expectation change. Campaign-style institutional changes work by altering corporations' expectations of the future institutional environment. We verify this mechanism from two perspectives, namely, the intensity of changes caused by uncertainty and corporate sensitivity to changes. Our results remain robust when subject to several tests based on different identification hypotheses and alternative measures. Unlike the existing literature on the political connections driving CP in China, this study, based on the institutional theory framework, reveals that campaign-style institutional changes constitute a non-transactional, unidirectional political motivation, which is a significant driving factor for CP in a Chinese context. This study evaluates the importance of GEA and reveals the non-transactional political motivations from the institutional theory perspective. This not only enriches existing discussions on the political motivations of CP but also broadens our understanding of the relationship between institutional uncertainty and CP in emerging markets.

Charity Publicity Strategy, Corporate Warmth and Consumer Response

In recent years, corporate philanthropy activities have made important contributions to helping the socially disadvantaged, narrowing the gap between the rich and the poor, strengthening emergency rescue and disaster relief, and promoting people's livelihood. On the one hand, enterprises have the appeal of economic interests, on the other hand, they also have the obligation to assume social responsibility, through charity activities can not only assume social responsibility, but also increase consumers' positive brand attitude and purchase intention, and improve the business conditions of enterprises. However, in real life, many companies do not pay attention to publicity work, resulting in charity activities that do not achieve the expected results of the enterprise, and even create the impression that consumers are "hypocritical". Although the company has paid the cost to undertake corporate social responsibility, it has not received the expected consumer response. Developing an effective publicity strategy for philanthropy can improve the situation and make corporate philanthropy work the most effective. So, what are the publicity factors that should be included in a corporate philanthropy publicity strategy? How do the various publicityl factors affect consumer response? The mechanism of its influence deserves in-depth study. First, three dimensions of corporate philanthropic publicity strategies are explored, publicity time, publicity media, and publicity initiative. From the consumer response perspective, the effects of corporate warmth on consumers' corporate attitudes and purchase intentions are also considered. Second, the impact of charity publicity strategy on consumer response under the regulation of corporate warmth is constructed. Applying two-factor ANOVA, it is found that the effects of publicity time and publicity initiative on consumer response are moderated by corporate warmth, while the effects of publicity media on consumer response are partially moderated. Finally, an orthogonal test is applied to find out the optimal combination of the three charitable publicity methods on consumer response. Aiming to help enterprises understand the mechanism of charitable publicity strategy on consumer response, and realize the purpose of effectively guiding consumer response and promoting consumers' recognition and support of corporate charitable activities

Corporate Philanthropy and Corporate Reputation During a Global Health Crisis

The aim of the study is to examine the nexus between corporate philanthropy (CP) and corporate reputation (CR) from the perspective of a global health emergency, cultural orientation, and African context. The study adopted a cross-sectional survey design. A purposive sampling procedure was adopted in the selection of 200 respondents and data were collected from the 200 respondents (Recipients of palliatives) through a structured questionnaire. Considering organizations as the unit of analysis, the data were aggregated, averaged and analyzed through paired (dependent-sample) t-tests, multivariate regression and moderation analysis. The results demonstrate that corporate philanthropy before and during the pandemic had a positive effect on corporate reputation, there was a significant difference in the perceived corporate reputation before and during the COVID-19 pandemic while cultural orientation and COVID-19 health crisis orientation moderated the relationship between CP and CR during the pandemic. This study is the first of its kind to empirical examine the link between CP and CR from the lens of cultural milieu, global health emergency of COVID-19 and in African context. The study contributed to management theory and practice through critical findings from the dimension of a global health crisis.

Roots and Rewards: Exploring the Symbiotic Relationship between Familism and Chinese Family Business Philanthropy

This study examines the profound influence of familism on the philanthropic behaviours of family businesses (FBs) in China, utilising data from A-share listed FBs from 2012 to 2020. Familism, a core cultural ethos in China, not only shapes family dynamics but significantly impacts broader socio-economic activities, including corporate philanthropy. Our findings reveal that the intensity of familism within FBs correlates positively with their philanthropic donations. This relationship suggests that FBs embed familial values deeply within their corporate strategies, thus enhancing their social reputation and contributing to societal welfare. Importantly, this study enriches the literature in the field of culture and corporate finance by illustrating how familism transcends internal business practices to influence community-oriented activities, broadening the understanding of how cultural values shape corporate philanthropy globally.

Can Chinese‐style trade unions promote corporate philanthropy? A stakeholder theory perspective

AbstractCorporate philanthropy is an important form of fulfilling social responsibility and improving social income distribution systems. Unlike Western trade unions, Chinese trade unions have government‐like functions. This study discusses whether Chinese‐style trade unions help promote corporate philanthropy. Based on stakeholder theory, this study examines the philanthropic effects of Chinese‐style trade unions using data from the Chinese Private Enterprises Survey and employs methods such as the Treatment Effect Model, Instrumental Variables Method, and Propensity Score Matching. The results show that unions with government‐like functions can significantly incentivize firms to engage in philanthropic activities and that this effect encourages start‐ups and well‐funded firms, which enriches and expands the research on the functions of unions. Trade unions can help enterprises gain political connections and promote a sense of corporate social responsibility, thus enhance corporate philanthropy. In addition, female leaders are more likely than male leaders to promote the positive impact of unions on corporate philanthropy. This study not only expands the literature on union functions and the antecedents of corporate philanthropy, but also enriches the discussion on the synergies among multiple stakeholders in stakeholder theory and the role of gender in the field of management.

Impact of corporate philanthropy on firm performance: The moderating role of board structure

Corporate philanthropy plays an important role in enhancing firm reputation and financial performance. Further, board structure has the responsibility to make philanthropic decisions. This study investigates the moderating role of board structure on the relationship between corporate philanthropy and financial performance. We apply fixed effect model for analysing the results, while generalized method of moments (GMM) is employed to check the robustness of the results. We find that corporate philanthropy has a significant positive impact on financial performance. Further, results provide support for the moderating role of board attributes. The findings suggest that the policymakers should take appropriate decisions regarding corporate philanthropy while considering other factors such as board attributes.

Impact of Corporate Governance on Social Responsibility: A Case of Nepalese Commercial Banks

This study examines the impact of corporate governance on social responsibility in the context of Nepalese commercial banks. Legal corporate social responsibility and philanthropic corporate social responsibility are selected as the dependent variables. The selected independent variables are board size, independent directors, audit committee size, female directors, foreign ownership, and government ownership. The study is based on secondary data of 15 commercial banks with 105 observations for the period from 2015/16 to 2021/22. The data were collected from Banking and Financial Statistics published by Nepal Rastra Bank and annual reports of the selected commercial banks. The correlation coefficients and regression models are estimated to test the significance and importance of corporate governance on social responsibility in the context of Nepalese commercial banks. The study showed that board size has a positive impact on legal corporate social responsibility and philanthropic corporate social responsibility. It indicates that larger the board size, higher would be the legal corporate social responsibility and philanthropic corporate social responsibility. Similarly, independent directors has a positive impact on legal corporate social responsibility and philanthropic corporate social responsibility. It indicates that increase in independent directors on the board leads to increase in legal corporate social responsibility and philanthropic corporate social responsibility. Likewise, audit committee size has a positive impact on legal corporate social responsibility and philanthropic corporate social responsibility. It indicates that increase in audit committee size leads to increase in legal corporate social responsibility and philanthropic corporate social responsibility. Further, female directors has a positive impact on legal corporate social responsibility and philanthropic corporate social responsibility. It indicates that increase in female directors leads to increase in legal corporate social responsibility and philanthropic corporate social responsibility. In addition, foreign ownership has a negative impact on legal corporate social responsibility and philanthropic corporate social responsibility. It indicates that higher the foreign ownership, lower would be the legal corporate social responsibility and philanthropic corporate social responsibility. Likewise, government ownership has a positive impact on legal corporate social responsibility and philanthropic corporate social responsibility. It indicates that higher the government ownership, higher would be the legal corporate social responsibility and philanthropic corporate social responsibility.

Shifting sands: the use of marketing communication strategies in corporate social responsibility disclosure in the United Arab Emirates

Purpose This study aims to investigate the evolution of sustainability reporting in the United Arab Emirates (UAE) against a backdrop of changing legislation. It uses qualitative content analysis within the corporate social responsibility (CSR) communication framework proposed by Kotler and Lee (2005) to investigate how corporations in the UAE disclosed information on their CSR activities in 2018 and 2023. Design/methodology/approach The authors refer to the CSR communication framework proposed by Kotler and Lee (2005), which puts forward a set of marketing communication strategies that can be used to promote a corporation. The authors identify the strategies used by the top 14 companies operating in the UAE in their CSR disclosure in the fall of 2018 and the spring of 2023, respectively. The authors note any changes that have occurred over time and differences between the distinct business sectors. Findings The findings indicate a continuing reliance on the marketing communication strategies associated with corporate philanthropy, cause promotion and being a good corporate citizen. All of the corporations in the study showed evidence of engaging in an increasing diversity of CSR initiatives and a corresponding diversity in the marketing communication strategies they used to promote them. Practical implications Corporations wishing to promote themselves through their CSR activities and build a positive reputation would do well to select a diverse set of CSR activities communicated in a variety of ways. Originality/value To the best of the authors’ knowledge, this study is the first longitudinal, comparative study examining the CSR marketing strategies of the top corporations in the UAE. As such, it contributes to the ongoing debate on CSR in the Middle East in general and to understanding more about the approach as well as the changes in approach to CSR in a Muslim-majority Middle-eastern and secular developing economy, the impact of CSR legislation and government regulation on CSR disclosures in different business sectors and the promotional opportunities afforded by effective CSR disclosure within the UAE in particular.

Pursuing Gains or Avoiding Losses? The Effect of CEO Regulatory Focus on Corporate Philanthropy

Pursuing Gains or Avoiding Losses? The Effect of CEO Regulatory Focus on Corporate Philanthropy

Navigating the Disclosure Landscape: The Influence of Industry and Region on Corporate Philanthropy

Navigating the Disclosure Landscape: The Influence of Industry and Region on Corporate Philanthropy

Multinational Corporations and Their Corporate Citizenships: Exploring Their Effects on Corporate Performance Under Different Legal Traditions

ABSTRACTIn this paper, we focus on the conceptualization of corporate citizenship and examine the effects of its tangible manifestation, in the form of corporate philanthropy, on company performance recognizing the importance of the institutional contexts where companies are embedded. Based on a sample of 752 multinational companies that have joined the UN Global Compact, we explore the derived benefits, using as a moderator the legal environment where companies operate. The results of the random‐effect regression analysis show the existence of a positive relationship between corporate citizenship and corporate market valuation over the study period (2016–2022). Findings on corporate citizenship are consistent with previous studies, and the role of the legal tradition emerges as a salient avenue for future investigation. Companies that highly leverage the philanthropic dimension of corporate citizenship and are primarily embedded in a common‐law tradition benefit more than those operating in a civil‐law system.

The Dual Labor Effects of Corporate Philanthropy

The Dual Labor Effects of Corporate Philanthropy

How the Uncertainty Associated with Social Issues Influences the Returns of Corporate Philanthropy

How the Uncertainty Associated with Social Issues Influences the Returns of Corporate Philanthropy

CHARTING THE LANDSCAPE OF CORPORATE PHILANTHROPY: A BIBLIOMETRIC EXPLORATION OF TRENDS AND THEMES

Purpose: This study identifies the main area and current dynamics of Corporate Philanthropy (CP) and offers recommendations for future research directions. Design/methodology/approach: Using bibliometrics, we examined a sample of 558 studies from Scopus, an online abstract and citation repository, to examine the research activities relating to CP between 1955 and 2022. Articles and authors with high citation impact scores are identified based on the publication’s position and significance within the field. We then explore contemporary issues, identify possible limitations towards the development of the literature, and propose new lines of inquiry for future studies. Findings: In addition to providing an in-depth analysis, this study discusses recent discoveries and shifts in mindsets pertaining to Corporate Philanthropy, taking into account previously documented findings which regarded CP disadvantageous to many companies mainly due to money outflow. The ‘agency theory’ considers the relationship between a principal and its hired representative. Past reports cited managers leveraging on CP as a way to justify unnecessary expenses. Meanwhile, the latest studies discovered that CP brings in various advantages to the companies such as additional profit avenues, enhanced visibility, and stronger market presence, benefiting its stakeholders and securing the sustainability of those companies. Future research on CP can be expanded through our suggested research directions. Research limitations/implications: This study focuses on using the Scopus database as the primary source of the journals. Hence, our findings may differ from the studies conducted using other databases. Originality/value: This is among the pioneer studies using Harzing and VOSviewer software to analyse the development of CP studies. Several future research agendas are generated due to the review, which focuses on annual publication trends, the most prolific authors, the most cited papers, the most prolific countries, the most prolific institutions and the most abundant sources. Keywords: Corporate philanthropy, bibliometric analysis, citation network, Scopus, systematic literature review. Cite as: Aziz, N. F., Ramli, R., Mohd Amir A., & Wahid, H. (2024). Charting the landscape of corporate philanthropy: A bibliometric exploration of trends and themes. Journal of Nusantara Studies, 9(2), 160-184. http://dx.doi.org/10.24200/jonus.vol9iss2pp160-184

Analysis of the Alcohol Industry’s Corporate Social Responsibility Practices in Portugal

Introduction: In Portugal, the alcohol industry (AI) engages in corporate political activity, influencing decision-making and potentially obstructing the implementation of evidence-based alcohol policies, such as higher taxes, stricter advertising laws, and mandatory warning labels on all alcoholic beverages. Yet, no research has been conducted specifically on the industry’s corporate social responsibility activities (CSR), which can also hinder the implementation of these cost-effective policies while serving as a means for nurturing its reputation. Methods: This study addresses this gap by examining the CSR practices of ten AI actors in Portugal. Through qualitative content analysis, data collected from their websites was categorized based on an adapted framework considering seven CSR categories. Results: The results revealed CSR practices across all categories, with corporate philanthropy and alcohol information provision and education accounting for 65% of the analyzed data. The findings highlight potential conflicts between the public health initiatives of AI in Portugal and its profit-driven objectives. Conclusion: CSR activities undermine health protection and alcohol harm prevention efforts by promoting a dubious discourse about an undeniably harmful substance. The present study recommends considering vigilant monitoring, regulation, or even the ban on CSR practices of AI in Portugal.

Impact of High-Quality Higher Education on Public Good: Evidence From Corporate Philanthropy of Listed Companis in China

Impact of High-Quality Higher Education on Public Good: Evidence From Corporate Philanthropy of Listed Companis in China

Familiarity matters: corporate philanthropy and employee workplace giving and volunteering

Employees create and enact corporate philanthropy (CP) programmes, which are a central strategy of corporate social responsibility (CSR) strategies. Employers rely on employees to donate and volunteer through the workplace. From a survey of more than 500 employees at a large corporation based in the United States, we determined that employees’ likelihood of participating in CP is affected by their length of job tenure, managerial responsibilities and work location (on- or off-site). Using structural equation modelling, we found that employee familiarity with the company’s CP programmes mediates the relationship between giving and volunteering with management positions and working on-site. Employee perception also matters. Employees who think highly of CP programmes’ community impact and workplace environment outcomes (CP ‘walk’) are more likely to give and volunteer. Conversely, perceptions of the company ‘standing out’ (CP ‘talk’) in its industry are negatively related to volunteering with the company. Findings contribute to the development of meso-level dynamics in workplace giving.

Does risk management moderate the relationship between CEO power and corporate philanthropy?

Does risk management moderate the relationship between CEO power and corporate philanthropy?

To whom and how much? An assessment of philanthropic donation variety in relation to firm performance

PurposeThe purpose of this study is to test a model examining the effects of philanthropic portfolio diversity in relation to firm performance. In particular, the authors assess organizational philanthropy portfolios targeted at diverse issue categories while also examining these effects when the organization also partners with a diverse range of stakeholder groups.Design/methodology/approachThe study leverages detailed company reports to collect, code and test a firm’s philanthropic behaviors based on focal issues such as community, education, environment and others. The authors also collect and analyze data on the range, type and quantity of stakeholders targeted by a firm’s philanthropic efforts. These philanthropic donations are then merged with financial data to examine the outcomes in a longitudinal analysis of over 2,000 firm-year observations.FindingsThe findings suggest that organizations that make focused and targeted philanthropic donations over a more generalist and broad approach realize higher performance. Furthermore, the authors find that variation across stakeholder donation amounts enhances firm performance by strategically identifying and targeting relevant stakeholder needs.Originality/valueThe present study expands on extant research to examine the performance implications associated with broad and general philanthropy versus targeted and narrow philanthropic efforts. Furthermore, the study provides support for a portfolio view of philanthropy to suggest organizations holistically assess, manage and leverage their efforts across issues and stakeholder groups. These findings provide additional insights into the complexities associated with corporate philanthropy portfolios while also discussing future research opportunities to enhance the outcomes associated with philanthropic activities.