Philanthropic Behavior Research Articles

ESG Ratings and CEO Charitable Stock Donations: Is Firm ESG Aligned With CEO Personal Philanthropy?

ABSTRACTIn the evolving landscape of sustainable investing, with unprecedented market attention on environmental, social, and governance (ESG) information, our study delves into the relationship between a firm's ESG ratings and the philanthropic behavior of its chief executive officer (CEO), particularly in terms of charitable stock donations. Examining US firms and utilizing comprehensive ESG data from Refinitiv, we find that ESG‐rated firm CEOs engage in greater personal stock donation activity as compared to their non‐ESG counterparts. They also appear to time donations in a less self‐serving manner. When we isolate ESG firms, we find CEOs of the strongest ESG performers exhibit no self‐interested timing behavior. Our study contributes to the sparse literature on CEO charitable behavior, shedding light on the potential alignment between ESG performance at the firm level and genuine, altruistic giving at the CEO level. Such alignment provides valuable insight for investors, policymakers, nonprofit organizations, and researchers interested in the intersection of sustainable investing and executive action.

A PROPOSED CONCEPTUAL FRAMEWORK OF PHILANTHROPIC BEHAVIOUR WITHIN THE ISLAMIC CONTEXT

Research on philanthropic behaviour has identified several key factors that motivate individuals to contribute. For Muslims, the belief that good deeds and contributions will be rewarded in the hereafter serves as a significant motivator. In essence, religiosity plays a crucial role in encouraging individuals to act benevolently. A study conducted by Hanudin Amin (2016) associated giving behaviour with the feelings of blessing which is interconnected with religion. While Ibrahim Sulaiman Alhidari (2013) asserted that philanthropic behaviour is significantly correlated and affected by other variables. This study aimed at proposing three theories to define the scope of philanthropic behaviour among alumni, namely the Theory of Planned Behaviour (TPB), Expectancy Theory and Investment Model. From the theories proposed, 16 variables and 15 hypotheses have been deduced. Other than that, this paper also discussed the Islamic view of intention, motivation and commitment, which were the mediating variables in the conceptual framework proposed.

Resources collection strategy of emergency materials based on evolutionary game model in complex network

PurposeIn recent years, the frequency of emergencies, such as natural disasters and public health crises, has markedly increased globally. These occurrences have introduced new challenges to national public security systems and emergency management capabilities. Post-disaster humanitarian logistic operations involve the collection of emergency relief resources to mitigate the impact of disasters in affected areas. Effective coordination among governments, enterprises and charities is essential to enhance the efficiency of these operations. This study employs evolutionary game theory to explore the strategic interactions and behavioral patterns among these key stakeholders during the collection of emergency materials.Design/methodology/approachA tripartite evolutionary game model involving governments, enterprises and charities is developed. Subsequently, to validate the theoretical findings, a scale-free network is constructed for the purpose of numerical simulations. As this network evolves, both the edges between nodes and the strategy choices of the nodes also change. Numerical simulations are conducted using the network to examine the sensitivity of factors influencing strategic choices among game stakeholders.FindingsAccording to the model simulation results, penalties significantly influence government regulation strength, while enterprise philanthropic behavior is mainly affected by penalties, profit transfer benefits and trust loss. For charities, strategic choices are primarily driven by penalties, tax subsidies, illegal operation benefits and charitable costs. The findings provide a theoretical basis for governments, enterprises and charities to select the sensible strategy.Originality/valueOur study establishes a dynamic network of edges and nodes evolving over time to analyze the strategic evolutionary paths of governments, enterprises and charities from a micro perspective. The results assist governments, enterprises and charities in making more strategic decisions.

Exploring The Understanding of Philanthropy Among The Public in Oman

Major natural disasters and catastrophes often prompt the public and organizations to start rallying for donations and philanthropic efforts. However, there is a limitation in understanding the term philanthropy. This study explores the understanding of the definition of philanthropy by the general public in Muscat, Oman. This is a qualitative study using in-depth interviews. Informants were introduced through the snowball technique. Data for the study were collected by conducting 20 open-structured interviews via Google Meet and Zoom platforms with the informants. The study of philanthropy from the general public’s perspective in Oman is explored, suggesting the term philanthropy consisted of five domains which are the practice of good deeds, positive affective, rehabilitation, learned model, and gratitude. These terms are more commonly used over philanthropic behavior and appear more comprehensive of the multitude of connotations and definitions across cultures. Future studies could consider exploring more younger millennials from a wider area about their philanthropic understanding.

Unpacking the Link Between Big Five Personality Traits and Waqf Participation in The Malaysian Armed Forces

This research delves into the utilization of Personality Traits theory to comprehend the underlying motivations behind Waqf practices among military personnel. Implementing a structured questionnaire as the main tool for data collection, a total of 487 responses were secured. The research tools utilized in this study were derived from prevailing scholarly literature in the realm of personality psychology. The empirical findings of this study validate the substantial influence of personality traits, encompassing behavioral control and environmental components, on the inclination of military personnel to participate in endowment practices. This elucidates the complexities inherent in charitable contributions within this specific cohort. The discoveries underscore the importance of individual personality traits in shaping philanthropic behaviors among military personnel. Elements such as behavioral control and environmental factors play pivotal roles in molding the propensity towards Waqf practices within this distinct demographic. These insights harbor practical implications for policymakers, military institutions, and scholars, furnishing a more profound insight into how personality traits and environmental elements impact endowment behaviors. This investigation emphasizes the necessity of taking into account personality traits when scrutinizing charitable endeavors among military personnel. By comprehending these motivations, policymakers and military entities can more effectively endorse and bolster Waqf practices among their members. Furthermore, these results contribute to the wider discussion on the convergence of personality psychology and philanthropy, enhancing our understanding of charitable behaviors in specialized settings such as the military.

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.

Philanthropic Giving and Volunteering Among Religious Disaffiliates

AbstractIncreasing numbers of religious disaffiliates in the United States is a notable demographic shift with deep implications for the money donated in the philanthropic sector. We seek to understand this change in more detail by analyzing philanthropic giving and volunteering patterns among religious disaffiliates using data from the General Social Survey. This article identifies that people who were religious at age 16 but leave later in life gave less to charitable causes, gave less often, and were less likely to have volunteered recently than their consistently religious counterparts. This article initiates the study of philanthropy specifically among religious disaffiliates, and so we conclude by discussing areas for further research that could further address fundamental questions about religious disaffiliates and their philanthropic behavior. By examining religious disaffiliates, this article adds nuance to more common comparisons of giving and volunteering across religious and nonreligious people. With changing religiosity in the United States, understanding these philanthropic changes is important for the future of both secular and religious nonprofits that rely on these donations for funding.

Corporate philanthropy, political connections, and costs of equity capital

AbstractWe examine how investors' perceptions of firms' philanthropic behaviors alter the effect of corporate philanthropy on costs of equity capital. Using a sample of Chinese A‐share listed firms from 2007 to 2018, we find that firms making philanthropic donations have higher equity financing costs. In contrast, firms without politically connected executives, experiencing provincial official turnovers, and located in provinces with fiscal pressure do not see an increase in costs of equity capital. In addition, Chinese investors consider strategic corporate philanthropy to establish political connections less valuable after anticorruption campaigns are launched, hence requiring higher rates of return from firms making monetary donations. Overall, this paper provides evidence that investors' perceptions of firm behavior are shaped by unique institutional factors in emerging markets, resulting in unintended economic consequences for firms.

Exploring the service learning program in the transition country context from the students' philanthropic behaviour vantage point: Case of Croatia

AbstractService learning is gaining growing attention in the academic community worldwide largely due to the benefits related to distinctive service learning outcomes. Among the many valuable student‐level outcomes, intention for future civic engagement through philanthropic behaviour is one of the most commonly investigated. This study provides an in‐depth analysis of students' participation in service‐learning programs and their future philanthropic behaviour in the form of volunteerism. A qualitative content analysis is conducted on the sample of students participating in an university's institutionalized service learning program of a transition country to explore its outcomes in this distinctive context. The findings identify four essential elements in assessing service learning participation, including three previously recognized ones and one emerging from the distinctive transition economy context. The findings are of particular importance for shaping the future civic engagement of students through philanthropic activities.

Peer effects in donations: Evidence from random assignment of college roommates

Understanding the determinants of philanthropic behaviors, which bring benefits to society but come with private costs, is crucial. In this study, we investigate the causal impact of exposure to peers with prosocial behaviors on an individual's donations. In contrast to previous research, we address the issue of self-selection by exploiting the random assignment of college roommates and tackle the challenges of reflection bias by examining peers’ volunteering history in high school in relation to an individual's donations in college. Our results indicate a statistically significant and positive impact of peers’ prosocial behaviors on an individual's own donations. Moreover, we find that the magnitude of peer effects varies based on individuals’ donation levels, interaction preferences, and self-confidence levels, suggesting social pressure as a potential mechanism of peer influence. This study contributes to the existing literature by shedding light on the role of social influence in shaping philanthropic behaviors.

UNDERSTANDING THE ALTRUISTIC FINANCIAL BEHAVIOR IN A NOT-FOR-PROFIT MICROFINANCE

Objective: Microfinance has long been considered as a way out of poverty. Not-for-profit microfinance emerged as an innovation in this particular field. This research aims to gather information on the not-for-profit microcredit named Blessing Revolving Fund, especially its actors' behavioral patterns.
 
 Method: This paper used a case study approach with data collection through interviews and document analysis. The samples are selected using the purposive sampling technique.
 
 Result: The results showed that the Blessing Revolving Fund was a not-for-profit microcredit with donations as its financial source. They give credits without collateral, without interest, and profit-sharing. The activity has three parties: managers, donors, and members. The desire to help others, ease of mechanism, satisfaction, comfort, and inner peace are a few reasons these actors participate. They also did not expect a reciprocity issue between performance and rewards.
 
 Conclusion: These results are inversely proportional to Vroom's theory of motivation. It also indicates a tendency towards philanthropic behavior in Blessing Revolving Fund activities.

Factors Influencing Philanthropic Behavior among Youths in Malaysia

Philanthropy is the desire to promote the well-being of others. It is about looking for and helping the welfare of others, particularly by giving them money for good reasons. Philanthropy is not only confined to the contribution of money, but it involves making efforts for religious purposes and self-satisfaction towards others. The level of charity among Malaysian citizens is alarming in 2015, Malaysia ranked 10th in the World Giving Index but in 2021 the ranking has dropped tremendously to 29th place. This has shown that Malaysians are getting less interested in participating in charitable activities and doing general good deeds. Therefore, there is an urgent need to look broadly at the philanthropic behavior of Malaysians. This research aims to determine the factors influencing philanthropic behavior among youth in Malaysia. For this study, a survey was conducted to the target population which is youth. Data was collected by distributing questionnaires via emails and WhatsApp groups and data was analyzed using SPSS and PLS-SEM. Findings show that religion and altruism are significant to the philanthropic behavior of Malaysian youth. This study has provided valuable insights into youth philanthropy by identifying solutions to further create awareness of philanthropy.

Philanthropic Behavior and Culture Difference

This paper explores the relationship between culture and philanthropic behavior, taking into account the unique differences between cultures. Philanthropy is a universal value that has guided human actions throughout history, but cultural differences can significantly impact how it manifests. Understanding these cultural differences is crucial for philanthropic organizations to effectively engage donors and make a significant impact on society. By adopting a more culturally sensitive approach and leveraging cross-cultural partnerships, philanthropic organizations can create positive change and address some of the most pressing social and environmental challenges facing our world today.

Analysis of The Influence of Muslim Sandwich Generation Technology Philanthropy on Poverty

This study aims to determine the effect of Muslim sandwich generation philanthropic technology on poverty. One of the problems that is still being faced by the Indonesian state is the problem of poverty. Poverty alleviation efforts are carried out to realize the ideals of the nation, namely, the creation of a just and prosperous society. The sandwich generation has the hope of living a just and prosperous life. The sandwich generation is like a slice of a sandwich. Those who have reached adulthood are "sandwiched" between responsibilities for children and their parents who have entered old age to care for, provide for, and meet the needs of clothing, food, and shelter. Becoming the sandwich generation may not be everyone's dream. The responsibility that is carried is not easy because you have to support two generations at once. Sandwich situations require an open attitude among family members to help ensure that money is managed wisely, effectively, and cooperatively. In addition to such a position, the Muslim sandwich generation must be aware that there are still other people's rights in their wealth. This means that this generation must issue obligations such as zakat, infaq, alms, and endowments. According to Marts (2013), this generation is very dependent on technological sophistication because it is required to have fast performance, so it tends to be more practical. This type of research is a quantitative research using the SEM (structural equation modeling) method. The research sample is the sandwich generation of Muslims in Indonesia with a probability sampling technique. This study's results indicate the influence of philanthropic technology used by the Muslim sandwich generation on poverty reduction. In addition, this research is useful for the government and formal charitable institutions to reduce poverty. However, this will be realized if the government protects formal charitable institutions thereby increasing philanthropic behavior by the Muslim sandwich generation. The government must also take a role, namely to regulate the distribution of benevolent funds to areas in need. For example, the centralization of benevolence funds to create a fair distribution. Sandwich generation competence using financial planning technology needs to be developed by the government so that it can build a mindset of people who are aware of managing finances. This can be done by increasing the number of charitable institutions engaged in financial planning technology. Charitable institutions also have a role, namely they must be able to maintain public trust and cooperate with other formal charitable institutions. Every formal charitable institution must be able to distribute all benevolent funds proportionally.

Altruism in the Perspective of the al-Qur'an and its Relevance to Philanthrophic Practices in Satu Amal Indonesia Organization

This study investigates the altruism found in the al-Qur'an and its relevance to philanthropic practices in the Satu Amal Indonesia (SAI) organization. This study uses the <em>maudhu'i</em> interpretation method of the al-Qur'an verses related to altruism. In addition to the relevant verses of the al-Qur'an, this study collected data from respondents who filled out several questions through the Google Form. The data is then analyzed in the context of altruistic values and their relevance to philanthropic practices in SAI. This study reinforces previous research that the millennial generation tends to have philanthropic behavior. The millennial generation of members of the SAI organization internalizes and applies the values of altruism contained in the al-Qur'an. In addition, this study reveals that SAI members tend to participate in philanthropic activities carried out online and use social media as a platform for promotion. Overall, this study shows that the millennial generation, particularly members of SAI, apply the value of altruism and show philanthropic behavior; the same values are taught in the Qur'an, to be precise in Q.s. al-Hasyr verse 9. The values of altruism are reflected in patterns of caring, collaborating, sustainable, and cooperative attitudes.

Corporate philanthropy and corporate social irresponsibility during the COVID-19 pandemic: evidence from China

Purpose This study aims to investigate the perspective of corporate philanthropy during the coronavirus disease 2019 (COVID-19) in China for firms with various levels of corporate social responsibility (CSR). Specifically, the study appraises the impact of the COVID-19 pandemic on the stock returns and sustainable development of Chinese-listed companies and determines the likelihood of paying donations vis-à-vis firm reputation.Design/methodology/approach The study used data from 117 Chinese-listed firms engaged in philanthropy during the COVID-19 pandemic. The authors also utilized the stock returns and cash donation data, and owing to the cross-sectional data and continuous nature of dependent variables, they employed the ordinary least squares regression to test the research hypotheses.Findings The results show that irresponsible actions have a positive relationship with donations. The study particularly reveals that irresponsible firms have significant negative abnormal returns during the first wave of the COVID-19 pandemic.Originality/value To the best of our knowledge, this is the first empirical study to explore the perspective of corporate philanthropy during the COVID-19 pandemic for companies with different CSR levels. This study contributes to the empirical research on CSR and provides insights for managerial-cum-financial decisions to encourage managers of irresponsible firms to pursue philanthropic behaviors after crisis events.

Shifting Meaning: Islamic Philanthropy According to the View of Muhammadiyah

This paper discusses Islamic philanthropy from the view of Muhammadiyah, this was obtained because there was a shift in the meaning of philanthropy in the past. Experts _ stated that philanthropy is an important element in Islam. Among the forms of philanthropy in Islam is zakat, one of Islam’s five pillars. Among other forms of Islamic philanthropy are infaq, alms, and waqf. Therefore philanthropy has a major position in the life of Muslims. The meaning above is different from philanthropy which is known in today's society but does not reduce the substance of philanthropy itself. Islam has an important role in terms of spreading religion and knowledge, establishing educational institutions, and even in the field of welfare. One important vehicle for the spread of Islam is the mosque, which was built on philanthropy. The Prophet Muhammad set an example of philanthropic behavior by establishing a mosque. Apart from establishing mosques, educational institutions which are places to gain knowledge were also established on the basis of philanthropy. It is through these educational institutions that the dissemination of knowledge develops. This paper aims to provide an understanding to the general public regarding the shift in the meaning of Islamic philanthropy, through the view of Muhammadiyah as the primary data source. The conclusion in this paper uses the theory of changes in Islamic law and uses a normative approach, of course with the aim of trying to reveal the values of truth in Islamic philanthropic practices in society so that they should be actualized in the future. Keywords : Islamic Philanthropy, Muhammadiyah, Theory of change in Islamic law

Putting Religious Bias in Context: How Offline and Online Contexts Shape Religious Bias in Online Prosocial Lending

Biases on online platforms pose a threat to social inclusion. We examine the influence of a novel source of bias in online philanthropic lending, namely that associated with religious differences. We first propose religion distance as a probabilistic measure of differences between pairs of individuals residing in different countries. We then incorporate this measure into a gravity model of trade to explain variation in country-to-country lending volumes. We further propose a set of contextual moderators that characterize individuals’ offline (local) and online social contexts, which we argue combine to determine the influence of religion distance on lending activity. We empirically estimate our gravity model using data from Kiva.org, reflecting all lending actions that took place between 2006 and 2017. We demonstrate the negative and significant effect of religion distance on lending activity, over and above other established factors in the literature. Further, we demonstrate the moderating role of lenders’ offline social context (diversity, social hostilities, and governmental favoritism of religion) on the aforementioned relationship to online lending behavior. Finally, we offer empirical evidence of the parallel role of online contextual factors, namely those related to community features offered by the Kiva platform (lending teams), which appear to amplify the role of religious bias. In particular, we show that religious team membership is a double-edged sword that has both favorable and unfavorable consequences, increasing lending in general but skewing said lending toward religiously similar borrowers. Our findings speak to the important frictions associated with religious differences in individual philanthropy; they point to the role of governmental policy vis-à-vis religious tolerance as a determinant of citizens’ global philanthropic behavior, and they highlight design implications for online platforms with an eye toward managing religious bias.

Research on the influence of ERKE’s philanthropy behavior on consumers’ purchase intention

A charitable donation is a social activity that companies ignore because it usually increases costs and does not bring additional productivity. Analyzing from the point of view of profit, as rational entrepreneurs, it is normal that they do not donate to society. But those well-known entrepreneurs, such as Bill Gates, regularly donate to specific projects. So why is that? Are they willing to give up their interests to help others? The original purpose of this article was to explore why entrepreneurs donate and how this affects consumer sensibilities. The research question is to instigate how a company’s philanthropic behavior influences consumers’ intention to purchase the company’s goods. The research was supported by research questionnaires posted on social media and data provided through major newspapers and articles. One-on-one interviews were conducted to get the most honest insights from consumers. Finally, to confirm whether consumers are more inclined to buy because of the company’s philanthropic efforts.

Study of Philanthropic Behaviour in Divine Economics Framework

Unfortunately, religious behaviour has been viewed by economists in terms of “Islamic economics,” “Christian economics”, etc. [Iannaccone (1986)]. Hence there has been a dichotomy prevailing between religious economic frameworks and the conventional rational choice theory.1 Whereas the conventional economists tried a variety of models to estimate the relationship between wages and time allocated to market labour supply but found that results mostly do not speak of the real world situation [Deaton (1980)]. The underlying reason was supposed to be faith and values which have strong effect on labour supply decisions [Pencavel (1986)]. The philanthropic behaviour relates to labour supply decisions directly through time allocated to voluntary services or indirectly through time allocated for earning and then donations out of these. It is observed that the variables of economic importance especially those relating to household resource allocation or labour supply decisions seem to be present in religious affiliation of individuals, their values and their perceptions about life before and after death as believed by the followers of divine religions which account for about two thirds of the world population.