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.     

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.     

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.     

Organized labor and corporate philanthropy: Evidence from Korea

This study examines the impact of organized labor on corporate philanthropy, focusing on Korean firms. We find a positive association between the labor unionization ratio and the corporate philanthropy of firms, especially for non‐Chaebol‐affiliated firms and firms that have positive operating cash flow. The results from the robustness tests, which employ alternative union strength proxies and two‐stage least squares regression analyses, support our major findings. The findings indicate that unionized firms can utilize corporate philanthropy to boost their bargaining power regarding wages and collective bargaining power with unions by reporting lower earnings. This study contributes to the corporate philanthropy and labor union literature by providing evidence that the labor union is a crucial stakeholder that may affect firms' philanthropic behavior. Our findings explain corporate philanthropic decisions in the Korean context.     

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.     

Different forms of corporate philanthropy,different effects: A multilevel analysis

This study investigates how different types of corporate philanthropy impact employees' life satisfaction. Grounded in signaling theory, we explore and clarify the nuances among three types of corporate philanthropy values: the absolute value of corporate philanthropy, the value of a firm's corporate philanthropy relative to its past level, and the value of corporate philanthropy relative to the firm size. Results of multilevel analyses on a large scale sample with 218 firms and 2,261 employees at two time points reveal that: the absolute value of corporate philanthropy positively influences employees' life satisfaction; the value of a firm's corporate philanthropy relative to its past philanthropy negatively impacts employees’ life satisfaction; and the value of corporate philanthropy relative to the firm size positively affects employees' life satisfaction. The results indicate that the influences of corporate philanthropy on employees' life satisfaction vary depending on the evaluation benchmarks. Firms may benefit by taking their size and past philanthropy into consideration when making corporate philanthropy investment decisions.     

Political dependence,social scrutiny,and corporate philanthropy: Evidence from disaster relief

This study explores why and how firms respond to social demands through philanthropic giving in the context of a severe natural disaster. Drawing on Marquis and Qian's organizational response model to government signals, we integrate resource dependence theory and institutional theory to build a two‐step model of organizational response to social needs, in situations of disaster relief. We argue that firms depending more on the government for support are more likely to donate in disaster relief, while firms who receive more scrutiny from the government and the general public and firms having more slack resources are likely to donate more. Evidence from Chinese listed companies' donations to the 2008 Sichuan earthquake largely supports our predictions. This study provides a more precise understanding of the corporate philanthropic decision process, decoupling the drivers of philanthropic giving, and those determining the amount given. Theoretical and practical implications are suggested.     

The effect of corporate philanthropy on corporate performance of Chinese family firms: The moderating role of religious atmosphere

Drawing on sustainable family business theory and stakeholder theory, this study explores how corporate philanthropy affects corporate performance with the consideration of the moderating effects of religious atmosphere. Based on data of Chinese 534 listed family firms, the results show that corporate philanthropy is positively associated with corporate financial performance (CFP) and corporate social performance (CSP). Moreover, religious atmosphere negatively moderates the relationship between corporate philanthropy and CFP, but positively moderates the relationship between corporate philanthropy and CSP. Our findings provide systemic understandings of family firms' CFP and CSP by drawing important insights of corporate philanthropy and religious atmosphere.     

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.     

Crossing the great divide of strategic entrepreneurship: Transitioning between exploration and exploitation

Managing uncertainty effectively is perhaps one of the most significant challenges a firm's decision makers face today. Strategic entrepreneurship—defined as exploration for future sources of competitive advantage, combined with exploitation of current sources of competitive advantage—has been proposed as a means via which decision makers can manage uncertainty. In this article, we discuss the transition between exploration and exploitation activities within organizations as a vital part of strategic entrepreneurship; this transition process can involve various types of internal firm challenges. Additionally, we highlight various sources for these internal challenges and mechanisms through which firms can overcome them.     

CLASS: Five elements of corporate governance to manage strategic risk

Strategic risk management is an increasing concern for both boards and senior executives. Many recent business failures are due to senior level misjudgement and mismanagement of risk, the consequences of which can range from embarrassment to serious setback to bankruptcy. Ineffective risk management puts otherwise strong business models in jeopardy. Here we present CLASS (Culture, Leadership, Alignment, Systems, and Structure), an integrated, five-element model of corporate governance. We identify how attending to the elements in this framework supports development of an integrated and robust approach to corporate risk, and helps senior executives anticipate and handle the complexities of risk inherent in meeting strategic objectives.     

Cash management and revitalization of public medical centres in Nigeria: a strategic analysis

In times like this, when Nigeria (like many other developing countries) is bracing up to the contemporary challenges posed by adoption and advancement of globally driven millennium development goals (MDGs), public medical centers (PMCs) cannot afford to be reckoned with financial epilepsy, bankruptcy, and degeneracy. This concern informed the thrust of the study. In the process, pertinent research questions were posed which elicited corresponding hypothetical propositions. With primary data volunteered by 150 administrative officials drawn from PMCs across the country, analytical proceedings were facilitated by the application of chi-square (x2) technique. The findings brought to the fore, the general bad shape of cash management in PMCs in the country. The recommendations for urgent attention underscored the constitution of strategic budget communities (SBCs), revitalization of internal audit committees (IACs), and attraction of goodwill private-sector endowments through convincing justification of the utilization and optimization of current government logistic subventions.     

Multiple influences on corporate governance practice in Nigeria: Agents,strategies and implications

The literature on the convergence of corporate governance systems across different institutional contexts has often taken the role of ‘agents of convergence’ for granted. Against this background, we examine the influences of three major agents – international organisations, rating agencies, and local institutions – on the development of corporate governance practices in Nigeria. Findings indicate that the understanding and practice of corporate governance in Nigeria are in a flux and being pulled in multiple directions by the agents studied. This paper provides one of the very few studies utilising sub-Saharan African (Nigerian) data in international business governance research.     

浅谈标准化在公路桥梁施工中的作用

本文介绍了标准化的概念,以及公路桥梁建设施工中所需要参考和依照的标准,标准化在公路桥梁施工中的作用与指导.     

How market value relates to corporate philanthropy and its assurance. The moderating effect of the business sector

Corporate philanthropy strategy integrated into the core business constitutes a novel vision and a little‐explored field of study with regard to corporate social commitment. The goal of this study is to analyse how the diverse ways of managing and assuring philanthropy can be considered signals of a firm's social commitment and consequently affect its market value. In addition, the analysis considers whether the business sector moderates those relationships. We aim to provide a comprehensive vision of corporate philanthropy and its effect on market value. From a sample of 965 firm‐years, of 193 firms from 2011 to 2015, we found that the market responds positively to the professional, independent management of philanthropy via a foundation, in preference to donations, and welcomes external assurance of corporate philanthropy as a set of actions that improve the perceived reliability of philanthropic activities. In addition, we observe a moderating effect of the business sector on the relationships among corporate philanthropy, assurance and the company's market value. The main contribution of this study is the provision of new evidence of how corporate philanthropy and its assurance are effective signals that reduce the information asymmetries between firms and investors, affecting company market value positively.     

Antecedents of perceived national and corporate culture differences: evidence from Chinese international strategic alliances

We investigate the determinants of managers' perceptions of national and corporate culture differences, using data obtained from Chinese partner managers of international strategic alliances. An expected positive relationship is found between the extent to which the managers have experienced culture-related management impediments and their perceptions of national and corporate culture differences. An expected negative relationship is found between the extent to which the Chinese partner firms have adopted cultural management policies and the perception of national culture difference, but is not found for the perception of corporate culture difference. The authors find no support for the expected negative relationship between cultural sensitivity and the perception of national and corporate culture differences. Adoption of cultural management policies moderates the relationship between the extent to which managers have experienced culture-related management impediments and their perception of corporate culture difference, but not their perception of national culture difference. It was also found that the degree of cultural sensitivity moderates the relationship between the extent to which the Chinese managers have experienced culture-related management impediments and their perceptions of national and corporate culture differences.     

The interplay of corporate social responsibility and corporate political activity in emerging markets: The role of strategic flexibility in non‐market strategies

Corporate social responsibility (CSR) and corporate political activities are complementary, and the coordinated management of corporate social responsibility and corporate political activities may lead to better firm performance. However, corporate social responsibility and corporate political activities should be aligned carefully to utilize this complementarity. Strategic flexibility, which is the ability of a firm to adapt to changes in the external environment and make necessary organizational modifications quickly, can help firms to align their corporate social responsibility and corporate political activities. This paper empirically investigates the political dimension and the interactive dimension which describes interactions between corporate social responsibility and corporate political activities together with strategic flexibility and their effects on firm performance through a study of 142 firms in Turkey using moderated multiple regression methods. The results show that, while the political dimension had an inverted U‐shaped effect on firm performance, indicating that only a moderate level of corporate political activities may improve financial performance, the interactive dimension had positive but limited implications for performance. Finally, it was found strategic flexibility plays a positive moderating role on the relationships between the interactive dimension and firm performance. It is concluded that complementarity between corporate social responsibility and corporate political activities which may result in better performance is contingent on strategic flexibility.     

Configuring a corporate venturing portfolio to create growth value: Within-portfolio diversity and strategic linkage

This study attempted an empirical investigation of whether and how a corporate investor can enhance future growth opportunities through corporate venturing investments (CVIs). Different from previous studies, we assessed the firm-level performance impact of a CVI portfolio with a focus on two configuration features: within-portfolio diversity and strategic linkage. Based on a longitudinal dataset of CVIs made by Taiwanese technology-based companies, we found that increasing CVI portfolio diversity and maintaining strategic linkages, particularly vertical ones, between the portfolio companies and the investing firm's core business will add value to the investing firm's future growth. Implications for CVI strategy and opportunities for future research are also discussed.