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Book part
Publication date: 31 May 2024

Guy Bennett-Longley and Daniel Laufer

Crises and natural disasters represent significant challenges to business, straining financial and human resources. However, corporate philanthropy during these times can result…

Abstract

Crises and natural disasters represent significant challenges to business, straining financial and human resources. However, corporate philanthropy during these times can result in significant benefits to the reputation of firms, while assisting in crisis recovery. This research focuses on the 2016 earthquake in Kaikōura, New Zealand to examine consumer reactions to corporate philanthropy. Two between-subject experiments were used to test the proposed hypotheses. Our results suggest that consumers do not differ significantly in their perceptions of the reputation of a company when donations of money or employee time are made by the company to assist the Red Cross. However, if a company is not engaged in corporate philanthropy, its reputation is significantly lower than when it engages in corporate philanthropy. We also found that the reputational benefits of giving to corporate philanthropy are weakened when consumers are highly sceptical of underlying corporate motives. Finally, we found that companies who give, despite being adversely impacted by a natural disaster, are perceived more favourably in terms of reputation, when compared with firms that have not been hurt by the natural disaster. We discuss the implications of this research for both practitioners and researchers.

Article
Publication date: 22 November 2023

Jungwon Lee, Ohsung Kim and Cheol Park

The purpose of this study is to analyze the nonlinear effects of corporate philanthropy on the responses of both internal and external stakeholders as well as its impact on…

Abstract

Purpose

The purpose of this study is to analyze the nonlinear effects of corporate philanthropy on the responses of both internal and external stakeholders as well as its impact on corporate financial performance.

Design/methodology/approach

Based on the stakeholder theory, the authors developed a conceptual model to examine the nonlinear effects of corporate philanthropy on company performance. For the empirical analysis, data from 397 company-years was analyzed using a using a Heckman two-stage model. The robustness of the findings was also confirmed through panel regression analysis.

Findings

The study revealed a linear relationship between corporate reputation and corporate philanthropy, whereas job satisfaction exhibited a nonlinear relationship with corporate philanthropy.

Originality/value

This research bridges the gap in extant literature by scrutinizing the nonlinear associations between corporate philanthropy and financial performance. Additionally, it addresses an emerging scholarly demand to uncover the “dark side” of corporate philanthropy through an investigation into its adverse impacts on employee satisfaction. Moreover, the study augments existing understandings of stakeholder theory and corporate philanthropy, positing that the influence of corporate philanthropy, as conceptualized through stakeholder theory, hinges on perceived fairness in multilateral relationships.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 36 no. 5
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 4 September 2023

Gongli Luo, Junying Hao and He Ma

Corporate philanthropy is increasingly a vital decision-making basis for consumers to purchase and establish relationships with enterprises. However, few studies have examined…

Abstract

Purpose

Corporate philanthropy is increasingly a vital decision-making basis for consumers to purchase and establish relationships with enterprises. However, few studies have examined corporate philanthropy from the perspective of community evolution. To address this gap, this study aims to provide a more in-depth and holistic investigation of corporate philanthropy by examining the evolution of social media brand communities caused by corporate philanthropy and the characteristics of consumer interactive behavior.

Design/methodology/approach

Web crawlers developed by Python were employed to collect data of ERKE from Sina Weibo (the Chinese equivalent of Twitter). A total of 2,736 posts and 7,774 comments were collected and investigated using social network and sentiment tendency analyses.

Findings

The results showed that the evolution of the social media brand community presented a prominent three-stage characteristic influenced by corporate philanthropy. The findings not only support the benefits of corporate philanthropy but also show the possible disadvantages. Besides, this study further concluded the characteristics of consumer interactive behavior in the social media brand community.

Originality/value

This paper addresses an attractive and practical issue related to the impact of corporate philanthropy. Moreover, this study is one of the first studies to examine the impact of corporate philanthropy in the context of the social media brand community. The findings of this study will provide a valuable reference for community operations and practitioners of brands.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 36 no. 3
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 16 November 2023

Muhammad Akram Naseem, Enrico Battisti, Antonio Salvi and Muhammad Ishfaq Ahmad

This study examines the relationship between green intellectual capital (GIC) and competitive advantage (CA) and proposes the moderating role of corporate philanthropy types…

Abstract

Purpose

This study examines the relationship between green intellectual capital (GIC) and competitive advantage (CA) and proposes the moderating role of corporate philanthropy types (cash, in-kind and both) during the COVID-19 pandemic. In particular, this study investigates the types of corporate philanthropy, strengthening the link between GIC and CA for Chinese listed firms during a pandemic.

Design/methodology/approach

Cross-sectional data were collected from 248 chief executive officers (CEOs) of Chinese firms listed on the Shanghai Stock Exchange through a structured questionnaire. Regression analysis was employed to test the proposed hypotheses.

Findings

The findings reveal that all types of GIC positively influence a firm's CA. Furthermore, all three types of philanthropy – cash, in-kind and both – moderate the relationship between GIC and CA. However, the intensity of moderation was higher in the case of in-kind philanthropy than in the other two types.

Originality/value

To the best of the authors' knowledge, this is the first empirical study to examine the relationship between GIC (considering its three components: human, structural and relational capital) and CA in China. The study finds different types of philanthropy as moderating variables to better explain the relationship between GIC and CA. Further, it contributes to a new line of research that aims to study philanthropic aspects connected to the GIC debate.

Details

Journal of Intellectual Capital, vol. 25 no. 1
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 11 November 2022

Husam Ananzeh, Malek Hamed Alshirah, Ahmad Farhan Alshira'h and Huthaifa Al-Hazaima

A key goal of this research is to examine empirically whether politically connected board members are likely to impact corporate philanthropy. A further goal of this study is to…

Abstract

Purpose

A key goal of this research is to examine empirically whether politically connected board members are likely to impact corporate philanthropy. A further goal of this study is to contribute to the existing literature by examining the moderating role of political connections on the relationship between family ownership and corporate donations.

Design/methodology/approach

Based on the content analysis approach, the authors determined the level of cash and in-kind donations made by a group of 94 non-financial Jordanian companies listed on the Amman Stock Exchange. This study examined 658 annual reports spanning over seven years from 2010 to 2016. Ordinary least squares regression (OLS) is used to test the study hypotheses. In addition, this study used the probit regression to validate those results reported by the OLS regression.

Findings

Compared to unconnected companies, politically connected companies in Jordan are more likely to donate to philanthropic causes. Moreover, the results revealed that the presence of significant family ownership shareholding in a firm can weaken the firm tendency to donate. Despite this, the regression analysis results indicate that family-controlled firms with political connections are more likely to engage in charitable giving activities compared to those without political nexuses.

Research limitations/implications

The study contributes to the conversation surrounding corporate giving and sheds light on the role political connections and ownership structure (particularly family-owned firms) play in affecting donations by firms.

Practical implications

Managers of Jordanian firms listed on the stock exchange can use the study's findings to make better decisions about their donations and other philanthropic activities.

Originality/value

This study is the first to examine the relationship between firm donations and political connections in Jordan, and how political nexuses can moderate the relationship between family ownership and corporate donations. Hence, it extends prior research significantly.

Details

Journal of Accounting in Emerging Economies, vol. 13 no. 5
Type: Research Article
ISSN: 2042-1168

Keywords

Article
Publication date: 26 March 2024

Min Ji, Detian Deng and Guangyu Li

Charitable giving in China has moved from being subjected to government attention and public skepticism to receiving government encouragement and public support. The role played…

Abstract

Purpose

Charitable giving in China has moved from being subjected to government attention and public skepticism to receiving government encouragement and public support. The role played by political connections in philanthropy is indisputable, although very few studies have explored their association from the perspective of the country’s first Charity Law of 2016. This study aims to contribute to the ongoing debate about the 2016 Charity Law and offers an understanding of the future trends in corporate charitable giving.

Design/methodology/approach

Using empirical analysis of data collected from listed companies in China, this study analyzes the impact of political connections on corporate charitable giving before and after the 2016 Charity Law. The study adopts three leading theories from previous research into corporate charitable giving and political connections: corporate social responsibility, resource dependence theory and stakeholder theory. A conceptual framework is outlined, and hypotheses are formulated accordingly.

Findings

The results show that political connections have a substantial positive impact on corporate charitable giving, both before and after the implementation of the 2016 Charity Law, which has significantly promoted and increased the amount and proportion of charitable giving. Although the 2016 Charity Law attempted to weaken the political connections of enterprises, the influence of political connections on corporate charitable giving has proved difficult to diminish or eliminate, as charity is dominated by the state.

Originality/value

This study explores the association between political connections and corporate charitable giving from the perspective of China’s Charity Law of 2016.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 11 August 2022

Hailiang Zou, Zedong Liang, Guoyou Qi and Hanyang Ma

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…

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.

Details

Social Responsibility Journal, vol. 19 no. 6
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 11 September 2023

Tareq Na′el Al-Tawil

The purpose of this paper is to examine the extent to which the corporate social responsibility (CSR) law will help combat money laundering in the United Arab Emirates (UAE).

Abstract

Purpose

The purpose of this paper is to examine the extent to which the corporate social responsibility (CSR) law will help combat money laundering in the United Arab Emirates (UAE).

Design/methodology/approach

The paper will first focus on examining whether money laundering and CSR are compatible. Such an analysis will then inform decisions on whether to include anti-money laundering in CSR disclosure requirements.

Findings

Key findings from the analysis have shown that the UAE CSR law does not explicitly mention money laundering as part of CSR disclosure requirements. Anti-money laundering (AML) and CSR are compatible and convergence, but money laundering is not yet an integral element of CSR disclosure requirements.

Originality/value

There are no clear mechanisms or provisions under the UAE CSR law on how money laundering can be included in CSR disclosure requirements, whether voluntary or mandatory. A pressing challenge now is whether the UAE should regulate AML/combatting the financing of terrorism disclosures under the CSR law. The main concern is that such a move could make mandatory disclosure another technical and regulatory requirement that UAE business must comply, which will be inimical to fostering a strong CSR culture.

Details

Journal of Financial Crime, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1359-0790

Keywords

Open Access
Article
Publication date: 12 May 2023

Husam Ananzeh

The purpose of this study is to investigate the impact of Corporate Philanthropic Donations (CPD) on the Corporate Economic Performance (CEP) of a group of Jordanian public…

Abstract

Purpose

The purpose of this study is to investigate the impact of Corporate Philanthropic Donations (CPD) on the Corporate Economic Performance (CEP) of a group of Jordanian public shareholding companies.

Design/methodology/approach

The sample includes 94 companies listed on the Amman Stock Exchange between 2010 and 2016. Manual content analysis is employed to collect the quantitative-related data needed for this study.

Findings

Our findings show that CPD is relevant, with a significant impact on financial performance. More specifically, CPD has a positive impact on the performance indicators measured by Tobin’s Q (TQ), return on equity (ROE) and return on assets (ROA).

Research limitations/implications

This study contributes to the research debate on CPD and CEP, especially in developing countries. It emphasizes the importance of such practices in increasing corporate profitability.

Practical implications

The study’s findings highlight the importance of CPD for Jordanian corporate managers. A greater emphasis on donations is likely to attract investor attention, government attention, media attention and humanitarian activism, all of which will enhance corporate goodwill.

Originality/value

This study demonstrates the positive relationship between corporate social responsibility (CSR) and CEP in an emerging economy, with a focus on one aspect of CSR, namely donation, that is underrepresented in developing countries. The study employs multiple methods for analyzing profitability as proxied by TQ, ROE and ROA, given the presence of multiple proxies to measure profitability. A further interesting aspect is examining the topic of CPD in the Jordanian context, where listed companies exhibit a uniform understanding of CPD.

Details

Journal of Business and Socio-economic Development, vol. 4 no. 1
Type: Research Article
ISSN: 2635-1374

Keywords

Article
Publication date: 27 June 2023

Fahmi Medias, Reni Rosari, Akhmad Akbar Susamto and Asmak Binti Ab Rahman

Intellectual curiosity about innovation in philanthropic organizations has grown recently. This study aims to provide a thorough bibliometric analysis of the patterns and trends…

Abstract

Purpose

Intellectual curiosity about innovation in philanthropic organizations has grown recently. This study aims to provide a thorough bibliometric analysis of the patterns and trends in the scientific literature on innovation in philanthropy.

Design/methodology/approach

Based on the Scopus database, a descriptive bibliometric analysis with a visualization tool (RStudio®) was used to assess the creation of 159 articles on innovation in philanthropic organizations.

Findings

This research finds a large number of papers on innovation in philanthropic organizations. According to this study, the USA has published more research than any other country. The Icahn School of Medicine has the most popular publications, followed by the Bill & Melinda Gates Foundation. According to the number of citations, the Journal of Business Ethics is the most prolific journal. However, according to the h-index, Corporate Reputation Review is the most important publication. Halme M is regarded as a prominent scholar. With 244 citations, the work of Kramer MR and Porter ME is the most referenced. “Philanthropy” is the most often used keywords category, followed by “innovation” and “social innovation”.

Practical implications

This study can serve as a useful reference for researchers conducting bibliometric research by offering information on the field’s famous authors. Furthermore, the outcomes of this study make it straightforward for researchers to seek extensive academic collaboration in this field.

Originality/value

To the best of the authors’ knowledge, this study is the first to present a pattern in research on innovation in philanthropic organizations.

Details

International Journal of Innovation Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-2223

Keywords

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