Corporate Philanthropic Giving,Advertising Intensity,and Industry Competition Level

This article examines whether the likelihood and amount of firm charitable giving in response to catastrophic events are related to firm advertising intensity, and whether industry competition level moderates this relationship. Using data on Chinese firms’ philanthropic response to the 2008 Sichuan earthquake, we find that firm advertising intensity is positively associated with both the probability and the amount of corporate giving. The results also indicate that this positive advertising intensity-philanthropic giving relationship is stronger in competitive industries, and firms in competitive industries are more likely to donate. This study thus provides evidence suggesting that even in the wake of catastrophic events, corporate philanthropic giving is strategic.     

Philanthropic disaster relief giving as a response to institutional pressure: Evidence from China

This paper investigates if firms under high institutional pressure donate more to disaster relief than firms under lower institutional pressure. By taking Chinese listed companies' donations to May 12, 2008 Wenchuan earthquake as the sample, this research finds that large firms and firms who have political ties donate a significant more to disaster relief than smaller firms and firms who do not have political ties. But the findings indicate that state-owned enterprises (SOEs) donate no more than non SOEs, and service companies donate significantly less than non-service companies. The results of this research partly support the institutional point of view of corporate philanthropy. Firms under high institutional pressure are more likely to donate more than firms facing lower institutional pressure.     

Corporate Philanthropic Disaster Response and Ownership Type: Evidence from Chinese Firms’ Response to the Sichuan Earthquake

This article examines whether the charitable giving amount and likelihood of firm response to catastrophic events relate to firms’ ownership type using a unique dataset of listed firms in China, where state ownership is still prevalent. Based on the data of Chinese firms’ response to the 2008 Sichuan earthquake, we find that the extent of corporate contributions for state-owned firms following this disaster is less than that for private firms. State-owned firms are also less likely to respond in␣this disaster compared to private firms. The results also␣reveal that firm size, profitability, geography, cash resource available, and leverage affect firms’ philanthropic disaster response behavior in China.     

Religion,the Nature of Ultimate Owner,and Corporate Philanthropic Giving: Evidence from China

Using a sample of Chinese listed firms for the period of 2004–2010, this study examines the impact of religion on corporate philanthropic giving. Based on hand-collected data of religion and corporate philanthropic giving, we provide strong and robust evidence that religion is significantly positively associated with Chinese listed firms’ philanthropic giving. This finding is consistent with the view that religiosity has remarkable effects on individual thinking and behavior, and can serve as social norms to influence corporate philanthropy. Moreover, religion and corporate philanthropic giving have a significantly weaker (less pronounced) positive association for state-owned enterprises than for non-state-owned enterprises. The results are robust to a variety of sensitivity tests. Our results highlight religious influence on corporate philanthropic giving in contemporary China, an old traditional country with a typical communist economy.     

Social Responsiveness,Profitability and Catastrophic Events: Evidence on the Corporate Philanthropic Response to 9/11

In this study we seek to determine whether catastrophic events lead to corporate charitable giving unrelated to levels of firm profitability. We examine the issue relative to the corporate philanthropic response to the 9/11 terrorist attacks of 2001. Based on a sample of 489 Fortune 500 companies, we find that differences in the extent of corporate contributions following 9/11 are positively and significantly associated with differences in firms' profitability. Further, while the degree of connection to the catastrophic event led to higher levels of giving in comparison to the contributions of less connected firms, differences in the extent of philanthropy are still␣related to short-term profitability for the more connected firms. The study thus provides evidence suggesting that even in the wake of catastrophic events, corporate philanthropic giving is constrained by economic concerns.     

Critical Mass of Women on BODs, Multiple Identities, and Corporate Philanthropic Disaster Response: Evidence from Privately Owned Chinese Firms

Although previous studies focus on the role of women in the boardroom and corporate response to natural disasters, none evaluate how women directors influence corporate philanthropic disaster response (CPDR). This study collects data on the philanthropic responses of privately owned Chinese firms to the Wenchuan earthquake of May 12, 2008, and the Yushu earthquake of April 14, 2010. We find that when at least three women serve on a board of directors (BOD), their companies’ responses to natural disasters are more significant. Age diversity among women on BODs as well as good corporate profitability (e.g., high earnings per share) positively moderates the relationship between women on BODs and CPDR.     

Talk the Walk: Measuring the Impact of Strategic Philanthropy

Drawing a framework from institutional and legitimacy theory, supplemented by concepts from the accounting literature, this study uses longitudinal cross-sectional and cross-national data on over 500 firms listed in the Dow Jones Sustainability Index (DJSI) to empirically test whether these firms are strategic in their philanthropy as indicated by their measurement of the impact of their philanthropic activities along three dimensions – society, business, and reputation and stakeholder satisfaction. It is predicted that the variables’ company size, amount of philanthropic expenditure, region and industry influence the extent to which the various impact dimensions of philanthropy are measured. Though unexpected considering the lack of common practice in impact measurement, it is found that between 62 and 76% of the DJSI firms measure some sort of impact of their philanthropic activities, mostly impact on society and impact on reputation and stakeholder satisfaction. The number of firms that measure impact increases over the years and so does the number of firms that measure multiple dimensions of impact. Consist with our predictions, we find that larger firms and firms with relatively higher philanthropic expenditures are more likely to measure impact. Moreover, firms in the financial sector and firms from Europe and North America are also more likely to measure impact of their philanthropic activities.     

Political Connection,Ownership Structure,and Corporate Philanthropy in China: A Strategic-Political Perspective

This paper investigates whether philanthropic giving decisions and amount of charitable giving are related to firms’ political connections and ownership type. To this end, Chinese firms listed on either the Shenzhen or Shanghai stock exchange between 2004 and 2011 are examined, where government interference in the business sector is prevalent, state ownership structure is dominant, and corporate political connections prevail. Our analyses show (1) a significant and positive relationship between political connections and the likelihood and extent of firm contributions; (2) a significant and negative relationship between state ownership and extent of firm contributions; and (3) a stronger relationship between political connections and corporate philanthropy in non-state-owned firms. These findings with regard to the relationship between corporate giving, political connections, and ownership type have important implications for understanding corporate giving behavior in China and in emerging markets in general.     

Firms' use of organizational,personal, and intermediary networks to gain access to resources for internationalization

This study explores which networks are beneficial for gaining resources for firms' internationalization. Little is known about firms' use of organizational, personal, and intermediary networks to gain access to resources for internationalization. Firms are seeking resources through their organization's relationships (organizational networks) and individuals' personal contacts (personal networks). Governmental and industry actors are implementing networks to promote international growth and act as an intermediary between business actors (intermediary networks). We conduct in‐depth interviews with firms and representatives for intermediary networks complemented with a survey. The findings reveal which resources are accessed through the different networks. We find organizational networks provide considerable access to most resources (except financial resources) that are beneficial for internationalization, whereas intermediary networks provide access to reputational, human, and market resources. Personal networks primarily provide access to human resources. This study contributes to theory by giving a more fine‐grained understanding of how different types of networks give access to different resources valuable for internationalization.     

Developing an effective strategic mix of corporate philanthropy

Corporate social responsibility (CSR) has become a very important issue in the business and academic communities alike. However, among various activities of CSR, corporate philanthropy has not attracted much academic effort to date. Therefore, many firms find it challenging to establish the most appropriate mix of philanthropic activities. This study tries to find the most effective strategic mix of corporate philanthropy. For this purpose, three dimensions of philanthropic activities (i.e. who, what, and to whom) are examined, along with the most effective attributes of each. The results show that consumers prefer the activities in which firms, rather than employees, donate their own products to the general public. Implications of the research results are discussed from an academic as well as from a practical standpoint.     

Power and Size of Firms as Reflected in Cleaning Subcontractors’ Practices of Social Responsibility

Recent discussions in the area of corporate social responsibility suggest that organizational size has complex meanings and thus requires more scholarly attention. This article explores organizational size in the context of relative power in inter-organizational networks. To shed light on the ways relative power interacts with size we studied social responsibility practices among cleaning subcontractors in three firms of different sizes. Our focus on the network differentiates these firms on the basis of their size and sector. Semi-structured interviews were used to trace cleaning subcontractors’ CSR-related practices. We analyzed subjective reports and discursive practices involved in subcontractors’ self-presentations. While the economic and philanthropic dimensions of social responsibility were presented by the cleaning subcontractors as independent of network constraints, the findings show that the legal and ethical dimensions were subject to large client–firm pressures. What we learn from our data is that the four dimensions of Carroll’s model, the economic, legal, ethical, and philanthropic, should all develop from and be evaluated against a fifth root dimension of inter-personal commitment.     

Listed peers' giving and corporate philanthropy: The motivations to imitate

The impact of industrial peers' donations on firms' charitable practices has been tested and verified in existing literatures. This paper further studies the motivations and scenarios of non-listed companies to imitate their listed counterparts in the same industry to formulate charitable policies. Deeply rooted in institutional isomorphism theory, uncertainty and professional networks are employed as philanthropic motives for unlisted companies to mimic their listed peers. Managerial decision mechanisms and network status perceptions enhance imitation by reinforcing decision uncertainty and network effect. Institutional environment heterogeneity can amplify or reduce the imitative stimulus of managers' decision mechanisms and status perceptions. Our empirical tests are based on a unique dataset of 14,873 unlisted firms and their corresponding listed counterparts in China from 2006–2016, and use Tobit regression methods. The results show a significantly positive association between listed peers' giving and non-listed firms' donation. The peer effects are intensified when non-listed firms' decentralized decision-making and higher managers' status identification are present. Furthermore, when the institutional environment changes from weak to strong, the impetus of decentralized decision-making and status identification will be weakened. These findings contribute to the corporate philanthropy literature and facilitate the development of effective corporate charity policies and government promotion of philanthropic responsibility.     

Corporate Social Performance, Stakeholder Orientation, and Organizational Moral Development

This article begins with an explanation of how moral development for organizations has parallels to Kohlberg's categorization of the levels of individual moral development. Then the levels of organizational moral development are integrated into the literature on corporate social performance by relating them to different stakeholder orientations. Finally, the authors propose a model of organizational moral development that emphasizes the role of top management in creating organizational processes that shape the organizational and institutional components of corporate social performance. This article represents one approach to linking the distinct streams of business ethics and business-and-society research into a more complete understanding of how managers and firms address complex ethical and social issues.     

Founder CEOs,personal incentives,and corporate social irresponsibility

This study integrates organizational identity (OI) theory and upper echelons theory to explore the impact of CEOs’ founder status on corporate social irresponsibility (CSI). We theorize that compared with other CEOs, a founder CEO is more likely to generate a high degree of OI with the firm, which will drive the founder CEO to actively avoid CSI that may damage the positive image and long-term development of the firm. Furthermore, we argue that CEO duality and CEO ownership will strengthen the aforementioned relationship by increasing the possibility of founder CEOs generating a high degree of OI. Conversely, CEO underpayment will weaken the relationship between founder status and CSI by decreasing the possibility of founder CEOs generating a high degree of OI. We obtained empirical evidence in support of our arguments from a large Chinese private listed company dataset. Overall, this study’s theory and evidence clearly show that founder status and personal incentives can jointly shape CEOs’ CSI decisions, thereby providing useful insights for corporate shareholders and government agencies to better prevent and govern firms’ CSI.     

Beating the recession blues: Exploring the link between family ownership,strategic marketing behavior and firm performance during recessions

This study explores whether family firms exhibit unique marketing behavior and whether their unique behavior in turn helps them outperform non-family firms during periods of economic contraction. Findings based on a sample of 275 large publicly listed U.S. firms reveal that family firms outperform non-family firms during recessions. This superior performance is partially driven by family firms' proactive marketing behavior and their relatively strong emphasis on corporate social responsibility (CSR). During recessions, while non-family firms tend to decrease their advertising intensities and rates of new product introduction (NPI), family firms are likely to maintain relatively high levels of advertising intensity and rates of NPI. Unlike non-family firms, family firms are also likely to maintain high levels of corporate social performance (CSP) during recessions. These results underscore the benefits of proactive marketing behavior and a continued emphasis on CSR during economic downturns. The authors also add to the scant family-firm literature, demonstrating the family firm to be an effective organizational form.     

Organizational culture,innovation, and performance: A test of Schein's model

Innovation is the key to organizational survival and therefore the study of processes that support innovation should be of interest to researchers and practitioners alike. Schein's multi-layered model of organizational culture offers a useful framework for thinking about processes that foster innovation. A defining characteristic of the model is the subtle but important distinctions between the varied “layers” of organizational culture (i.e., values and norms, artifacts and behaviors). The basic assumption of this study is that Schein's model offers a tractable explanation of cultural processes that support organizational innovation, especially in service firms. Despite the intuitive appeal and practical value of Schein's conceptual framework, empirical research in relation to the model is limited. This paper develops a rationale for an empirical model based on Schein's conceptual model; the study reports a test of an empirical model. Data collected from approximately 100 principals of law firms provides a suitable empirical context for a test of the model. The findings generally support the hypothesized relationships. A key result is how layers of organizational culture, particularly norms, artifacts, and innovative behaviors, partially mediate the effects of values that support innovation on measures of firm performance. The findings have implications for theory and practice, especially in relation to building an organizational culture within professional service firms that fosters innovative behavior.     

Strategies,technologies, and organizational learning for developing organizational innovativeness in emerging economies

Innovativeness is an important organizational capability for competitive advantage sustainability in the dynamic environment of Asia's emerging economies. Drawing upon dynamic capability theory, this study develops a research model of organizational innovativeness development for firms in emerging economies. The proactive strategic orientations reflected by entrepreneurship and technology oriented strategy provide important visions for organizational innovativeness. Further, the utilization of knowledge management systems and organizational learning are identified as intervention processes that translate these strategic orientations into real innovation capability. A survey involving 114 firms operating in China was conducted for hypothesis testing. The empirical results provide strong support and advance the knowledge of organizational innovativeness development for firms in Asia's emerging economies.     

Female analysts and COVID-19 corporate donation

This paper examines the impact of female analysts' coverage on firm's philanthropic activities amidst the outbreak of the COVID-19 pandemic in China. Using a hand-collected dataset of corporate philanthropy, the paper provides robust evidence that firms covered by female analysts are more likely to contribute actively to the well-being of societies by increasing corporate donation. This positive relationship is more pronounced if the company is privately controlled or covered by female analysts with more working experience, or located in more infectious provinces. Overall, our findings call for more female analyst recruitment, yielding benefits of pressuring firms to engage in philanthropy.     

Corporate Charitable Contributions: A Corporate Social Performance or Legitimacy Strategy?

This study examines the relation between firms’ corporate philanthropic giving and their performance in three other social domains – employee relations, environmental issues, and product safety. Based on a sample of 384 U.S. companies and using data pooled from 1998 through 2000, we find that worse performers in the other social areas are both more likely to make charitable contributions and that the extent of their giving is larger than for better performers. Analyses of each separate area of social performance, however, indicate that the relation between giving and negative social performance (cited concerns) only holds for the environmental issues and product safety areas. We find no significant association between corporate philanthropy and employee relations concerns. In general, these findings suggest that corporate philanthropy may be more a tool of legitimization than a measure of corporate social responsibility.     

The impact of residual government ownership in privatized firms: New evidence from China

This study investigates the determinants of residual government ownership and the impact of such ownership on post-privatization performance in China. Using hand collected data, we find that government shareholders are more likely to be present in small firms, while large firms are more likely to have politically connected CEOs on their boards. Contrary to the “political interference” hypothesis, our results show that residual government ownership has a positive impact on Tobin's Q. This study indicates that when the risk of expropriation by parent companies is high, government shareholders can add value to firms by signalling their commitment to privatization.