Corporate philanthropic response to the COVID-19 pandemic in China: a dilemma?
ISSN: 1747-1117
Article publication date: 11 August 2022
Issue publication date: 4 July 2023
Abstract
Purpose
This study aims to examine the corporate donations in response to the intensive outbreak of the COVID-19 pandemic in China in 2020 and proposes that the local spread of COVID-19 is negatively associated with corporate donations due to the non-trivial costs, but meanwhile, strong institutional pressures based on institutional theory are put on firms to donate, which thus creates a dilemma for firms. This study further argues that the dilemma is heterogeneous across different institutional fields.
Design/methodology/approach
Using a sample of Chinese listed companies during the intensive outbreak of this pandemic, a two-stage Heckman selection model is conducted to address the potential sample selection bias.
Findings
This study reveals a negative relationship between the local spread of COVID-19 and corporate donations, confirms the driving effect of various types of institutional pressure and finds that the intensity of the COVID-19 pandemic strengthens the effect of coercive pressure and mimetic pressure on philanthropic giving but weakens the effect of normative pressure.
Originality/value
This study extends the knowledge on firms’ philanthropic response to natural crises, as the COVID-19 pandemic has not only led to a public health crisis but also to a global economic crisis, and how the effects of institutional pressures are affected by a situational crisis. This work enriches the literature on corporate philanthropy and crisis management and has some implications for both policymakers and business practitioners.
Keywords
Acknowledgements
This study is supported by the National Natural Science Foundation of China (Grant Nos 71972125, 71472063), and the Humanities and Social Sciences Research Project of the Ministry of Education of China (Grant No. 20YJC630099).
Citation
Zou, H., Liang, Z., Qi, G. and Ma, H. (2023), "Corporate philanthropic response to the COVID-19 pandemic in China: a dilemma?", Social Responsibility Journal, Vol. 19 No. 6, pp. 1085-1106. https://doi.org/10.1108/SRJ-10-2021-0432
Publisher
:Emerald Publishing Limited
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