Rethinking the new corporate philanthropy

More than ever, corporations are expected to practice “citizenship” by engaging in various community or social philanthropy programs. These corporate social responsibility (CSR) programs have broad appeal among business scholars, business executives, and the public. After first setting some theoretical boundaries for CSR as it relates to the legal and strategic management fields, the authors examine how CSR (both its implementation and expectations) can lead to unintended results, compromising the distinct roles business and government play in market-driven, democratic systems.     

Board composition and corporate philanthropy

Using agency theory, this study empirically examined the relationship between board composition and corporate philanthropy. Generally, the ratio of insiders to outsiders, the percentage of insider stock ownership, and the proportion of female and minority board members were found to be positively and significantly associated with firms' charitable contributions.Jia Wang received his Ph.D. from the University of Tennessee, Knoxville. He is an associate professor of management at California State University at Fresno. His current research interests include corporate governance and corporate social performance.Betty S. Coffey is an assistant professor of management at Appalachian State University. Her research interests are in the area of corporate social performance and functional level strategic management.     

Euphemisms and hypocrisy in corporate philanthropy

Over the past two decades, a growing number of large multinational corporations have come to view philanthropy as an important part of their business operations. This has stimulated research on the many different strategies that are pursued by these corporations in their attempts to become more philanthropic while remaining economically responsible. In this situation, some researchers have argued, corporations run the risk of being caught out as hypocrites. Through an analysis of the corporate social responsibility reports of the biggest multinational corporations, this article shows how the risk of hypocrisy is managed communicatively through the use of euphemisms. The article argues that the use of euphemisms makes it possible to communicate both economically and philanthropically without manifest contradictions. Euphemisms, however, are also risky in their own right.     

Resonance tropes in corporate philanthropy discourse

This paper explores corporate charitable giving disclosures in order to question the extent to which corporations can claim that their philanthropy activities are charitable at all. Exploration of these issues is carried out by means of a tropological analysis that focuses on the different linguistic tropes within the philanthropy disclosures of 52 companies, namely metaphor and synecdoche. The results reveal a number of complex and contradictory things. Primarily, the master metaphor of 'altruism' projected by the corporate disclosures is ideologically at odds with the more business case-oriented discourse that shapes the disclosures. This contradiction is put into starker contrast by the existence of a root metaphor, whereby the recipients of corporate philanthropy are presented as the 'deserving poor'. Synecdochal devices are present within the corporate disclosures, whereby employee initiatives that are independent of corporate strategies are used to confer attributes onto the disclosures that bolster the master metaphor of 'altruism'. As such, corporate philanthropy is presented by the paper as a structurally incoherent discourse and yet one that has implications for both extracting greater value from various societal groups and in defining, on behalf of civil society, what is a worthy cause.     

A conceptual model of corporate moral development

The conceptual model presented in this article argues that corporations exhibit specific behaviors that signal their true level of moral development. Accordingly, the authors identify five levels of moral development and discuss the dynamics that move corporations from one level to another. Examples of corporate behavior which are indicative of specific stages of moral development are offered.R. Eric Reidenbach is Professor of Marketing and Director of the Center for Business Development and Research at the University of Southern Mississippi. He has written extensively on business and marketing ethics.Donald P. Robin, Professor of Business Ethics and Professor of Marketing at the University of Southern Mississippi, is coauthor with R. Eric Reidenbach of two recent books on business ethics with Prentice-Hall. He is a frequent lecturer on business ethics and is the author of several articles on the subject.     

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.     

Unredistributable corporate moral responsibility

Certain cases of corporate action seem especially resistant to a shared moral evaluation. Conservatives may argue that if bad intentions cannot be demonstrated, corporations and their managers are not blame-worthy, while liberals may insist that the results of corporate actions were predictable and so somebody must be to blame. Against this background, the theory that sometimes a corporation's moral responsibility cannot be redistributed, even in principle, to the individuals involved, seems quite attractive.This doctrine of unredistributable corporate moral responsibility (UCMR) is, however, ultimately indefensible. I show this in several steps. After first locating UCMR in the context of the evolving debate about corporate moral agency, the paper reexamines cases cited in defense of UCMR and takes up the attempt to defend it by identifying corporate moral agency with corporate practices. A further section explores the claim that UCMR is a convention distinct from, yet compatible with, traditional natural notions of responsibility. The final section develops a notion of combined akratic agency to provide an alternate explanation, compatible with rejection of UCMR, of the phenomena which make the doctrine attractive. Jan Edward Garrett is Associate Professor of Philosophy at Western Kentucky University, with major interests in business ethics, the metaphysics of social organizations, and ancient philosophy. He has published on Aristotle's conception of techne (craft) in The Modern Schoolman (1987) and his article Persons, Kinds and Corporations: An Aristotelian View has appeared in Philosophy and Phenomenological Research. He attended Peter French's NEH Summer Seminar on Corporate Responsibility in 1983.     

What is necessary for corporate moral excellence?

At the beginning of this essay I sketch a solution to the question of how we can predicate moral properties, such as moral excellence, to the corporation. This solution suggests that there are at least two necessary criteria for corporate moral excellence: (1) a moral corporate culture and (2) the moral autonomy of the individual within the corporate culture. I put forward guidelines for the development of both and argue for their necessary interdependence. W. Michael Hoffman is Director of the Center for Business Ethics and Chair of the Philosophy Department at Bentley College, Waltham, Massachusetts, U.S.A. His most important publications are Business Ethics: Readings and Cases in Corporate Morality (McGraw-Hill, 1984), Proceedings of five national conferences in Business Ethics, Kant's Theory of Freedom and articles in various professional periodicals and anthologies.     

The strategic use of corporate philanthropy: building societies and demutualisation defences

This paper examines the strategic use of corporate philanthropy in the 1990s by UK building societies faced with an intensification of societal pressure to change legal form from mutual to corporate status. While the economic case for mutuality has been made elsewhere, this paper examines the observation that community relationships were thought by management to be capable of assisting in the strategic positioning of mutual societies with regard to their legal form. By increasing charitable giving to respond to the level of societal scrutiny and discussion on the issue of mutuality, this paper argues that charitable giving, as one proxy for community involvement, was used as a strategic tool to deflect calls for demutualisation, thereby preserving the existing mutual status of building societies.     

The moral authority of transnational corporate codes

Ethical guidelines for multinational corporations are included in several international accords adopted during the past four decades. These guidelines attempt to influence the practices of multinational enterprises in such areas as employment relations, consumer protection, environmental pollution, political participation, and basic human rights. Their moral authority rests upon the competing principles of national sovereignty, social equity, market integrity, and human rights. Both deontological principles and experience-based value systems undergird and justify the primacy of human rights as the fundamental moral authority of these transnational and transcultural compacts. Although difficulties and obstacles abound in gaining operational acceptance of such codes of conduct, it is possible to argue that their guidelines betoken the emergence of a transcultural corporate ethic. William C. Frederick is Professor of Business Administration, Graduate School of Business, University of Pittsburgh. He is President (1990) of the Society for Business Ethics, former chair of the Social Issues in Management division of The Academy of Management, and was the Charles Dirksen Professor of Business Ethics at Santa Clara University in 1980–81. He is coauthor of Business and Society: Corporate Strategy, Public Policy, Ethics (McGraw-Hill, 1988).     

The central distinction in the theory of corporate moral personhood

Peter French has argued that conglomerate collectivities such as business corporations are moral persons and that aggregate collectivities such as lynch mobs are not. Two arguments are advanced to show that French's claim is flawed. First, the distinction between aggregates and conglomerates is, at best, a distinction of degree, not kind. Moreover, some aggregates show evidence of moral personhood. Second, French's criterion for distinguishing aggregates and conglomerates is based on inadequate grounds. Application of the criterion to specific cases requires an additional judgment of a pragmatic nature which undermines any attempt to demonstrate French's thesis that actual conglomerates are moral persons and aggregates are not. Thus, French's theory is seriously lacking both empirical basis and empirical relevance.     

Does corporate philanthropy exist?: business giving to the arts in the U.K.

This paper addresses the question of the existence of corporate philanthropy. It proposes a framework for analysing corporate philanthropy along the dimensions of business/society interest and primary/secondary stakeholder focus. The framework is then applied in order to understand business involvement with the arts in the U.K. A unique dataset of 60 texts which describe different firms' involvement with the Arts is analysed using formal content analysis to uncover the motivations for business involvement. Cluster analysis is then used in order to identify motivational groupings. Two broad types of involvement are identified – advertisers and legitimators. Only in one case of the 60 is there the potential to observe pure altruism. The contribution of this paper is twofold. First, it provides a clear framework to understand the motivations for corporate giving and applies this using empirical data. Secondly, this research finds little evidence, if at all, of corporate philanthropy in the context of firms giving to the Arts in the U.K.     

Rational interaction for moral sensitivity: A postmodern approach to moral decision-making in business

Moral dissensus is a distinct feature of our time. This is not only true of our post-modern culture in general, but also of business culture specifically. In this paper I start by explaining how modernist rationality has produced moral dissensus without offering any hope of bringing an end to it in the foreseeable future. Opting for a form of post-modernist rationality as the only viable way of dealing with moral dissensus, I then make an analysis of a number of ways proposed by both specialists in the field of business ethics, as well as philosophers to deal with moral decision-making in this situation of moral dissensus. The conclusion reached is that none of these attempts succeeds in coming to terms with moral dissensus. I then formulate an alternative approach to moral decision-making which I call: Rational interaction for moral sensitivity. After explaining this approach, I defend it against some of the most obvious objections that might be raised against it in a business environment.

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