Motives for corporate philanthropy and charitable causes supported

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dane K. Peterson ◽  
Cathryn Van Landuyt ◽  
Courtney Pham

PurposeThis paper examines how the inferred motives for corporate philanthropy relate to the types of charitable causes supported.Design/methodology/approachPublished data were obtained for 256 publicly traded and private corporations from a variety of sources.FindingsThe results demonstrated that a number of motives were not significantly related to total charitable giving, but were related to how charitable funds were distributed to various charitable causes. Thus, the study provides insights on the strategic use of corporate charity as means of achieving various business objectives and advancing a theoretical understanding of corporate philanthropy strategies.Research limitations/implicationsThis study only investigated some of the presumed motives for corporate philanthropy. Even for the motives investigated in this study, no attempt was made to examine all the motivational factors that determine the level of need for a specific motive. Thus, while the present study provides some of the first evidence of a relationship between motivational factors and data on the types of charitable causes supported, there are other motivational factors that could be investigated in future studies.Practical implicationsThe results have a number of implications for managers of nonprofit organizations such as marketing/targeting potential donors. Additionally, the results could be useful for managers of for profit firms in terms of comparing corporate strategies with competing firms.Originality/valueThe study provides a framework for investigating the relationship between motivational factors and types of charitable causes supported.

2018 ◽  
Vol 11 (1) ◽  
pp. 18-32 ◽  
Author(s):  
Dane K. Peterson

Purpose The purpose of this paper is to examine factors affecting the relationship between annual changes in the amount of corporate foundation giving and changes in corporate reputation. The factors investigated included the existing corporate reputation and the economic conditions. Design/methodology/approach Published data were obtained for 77 US corporations during both an upward and downward economic trend. Data for corporate foundation giving were obtained from IRS tax records while data on corporate reputation were obtained from the Reputation Institute’s RepTrak scores. Findings Linear mixed model analyses demonstrated that a firm’s prior reputation moderates the relationship between corporate philanthropy and changes in corporate reputation during a downward trend. That is, changes in corporate charitable giving and corporate reputation covaried positively for firms with an existing favorable reputation. However, for firms with an unfavorable reputation, there was an inverse relationship between changes in corporate giving and corporate reputation. The interaction between the variables was prevalent only during an economic downturn. Practical implications The findings provide firms with relevant information on conditions that affect how changes in charitable giving are likely to impact corporate reputation. Originality/value This study is the first to look at the effects of annual changes in corporate charitable giving on corporate reputation and adds to the research literature by demonstrating the complexity of the relationship by identifying two key factors that should be taken into considerations when developing annual budgets for charitable giving.


2014 ◽  
Vol 21 (1) ◽  
pp. 78-103 ◽  
Author(s):  
Narasimha Rao Vajjhala ◽  
Kenneth David Strang

Purpose – The researchers in this study reviewed the literature to locate the most relevant multicultural theories, factors, and instruments in order to measure Albania's national culture. The paper aims to discuss these issues. Design/methodology/approach – An innovative combination of exploratory and confirmatory factor analysis was used to fit the multicultural construct to the sample data and then estimate the national culture (n=73). The multicultural indexes were calculated for five generally accepted national culture factors to compare with the benchmarks published in the literature. Findings – The multicultural indexes were calculated for five generally accepted national culture factors to compare with the benchmarks published in the literature. An asymmetric plot was created for critical comparison of Albania with five other theoretically selected countries, using the indexes for PDi, ICi, MFi, UAi, and LTi. Albania was found to be most similar to its Balkan and Turkish neighbors, as compared with Asian or Western cultures such as that of the USA. Research limitations/implications – The researchers discussed the implications of knowing Albania's national culture profile with reference to how other countries might collaborate and transact with this emerging transition economy. Practical implications – From a business standpoint, the multicultural indexes for Albania provide general indicators of the national beliefs, norms and values, which foreign organizations may compare to their own cultural profile when interacting with professionals in this country. The best use for such indexes is for benchmarking and comparison. Foreign government, private corporations, or nonprofit organizations may compare their own culture profile with that of Albania to be aware of the similarities and differences. Originality/value – Albanian national culture was estimated for the first time in the literature, using a five-factor model adapted from the work of Hofstede.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Youliang Yan ◽  
Xixiong Xu

Purpose The purpose of this paper is to investigate whether and how affiliation with the government-controlled business association, namely, China Federation of Industry and Commerce (CFIC), affects corporate philanthropy in an emerging market. Design/methodology/approach Through an analysis of survey data gathered from Chinese private firms, this paper conducts multiple regressions to examine the impact of the CFIC membership on corporate philanthropy. Findings Empirical results show that the CFIC membership of private entrepreneurs is significantly positively associated with corporate philanthropy. Moreover, this study finds that the provincial marketization level and the firm Communist Party branch attenuate the positive association between CFIC membership and corporate philanthropy, indicating that the effect of CFIC on corporate philanthropy is more pronounced in regions with lower marketization level and firms without Communist Party branch. The findings are robust to various alternate measures of corporate philanthropy and remain valid after controlling for potential endogeneity. Practical implications Firms will be more active in corporate philanthropy to respond to the government’s governance appeal when they join the CFIC. This highlights the implications of political connections and in particular on the value of government-controlled business associations in the Chinese business world. Originality/value This study extends the literature on the determinants of corporate philanthropy and deepens the theoretical understanding of the governance role of business association with Chinese characteristics.


1988 ◽  
Vol 52 (3) ◽  
pp. 58-74 ◽  
Author(s):  
P. Rajan Varadarajan ◽  
Anil Menon

Cause-related marketing represents the confluence of perspectives from several specialized areas of inquiry such as marketing for nonprofit organizations, the promotion mix, corporate philanthropy, corporate social responsibility, fund-raising management, and public relations. The authors outline the concept of cause-related marketing, its characteristics, and how organizations, both for-profit and not-for-profit, can benefit from effective use of this promising marketing tool.


2016 ◽  
Vol 20 (3) ◽  
pp. 215-231 ◽  
Author(s):  
Christopher Wilson

Purpose – The purpose of this paper is to understand the extent to which dominant coalition members’ values and perceptions influence their perceptions of public relations participation in organization-level decision making. Research in this area has largely focussed on the relationship between practitioner roles and decision-making inclusion. Design/methodology/approach – The population of interest was dominant coalition members of for-profit, government, and nonprofit organizations in the USA. Data were collected through a national survey to a nonrandom sample of 201 dominant coalition members. Findings – Results indicate that dominant coalition members’ values of organizational openness to the environment and perceived substantive autonomy of the organization positively predicted perceptions of public relations participation in organizational decision making. Perceived manager role potential of the public relations department also had significant predictive power. Originality/value – While research has focussed primarily on the characteristics that public relations practitioners can develop to earn a seat at the management table, little is known about the characteristics of dominant coalition members that influence whether or not a seat is made available or the degree to which public relations is perceived to participate in decision making.


2014 ◽  
Vol 28 (4) ◽  
pp. 432-450 ◽  
Author(s):  
Soribel Genao

Purpose – Program efficacy and outcomes can often be determined through an examination of collaborative activities between and among inner city school districts with high dropout rates and private, public, and nonprofit organizations. Kettl (2004) adeptly describes additional collaborative practice trends that not only transform governance structures, but blurs the line between and among sectors. These trends illuminate the need for governmental agencies to collaborate with nonprofit and for-profit organizations to address “wicked problems” where no single organization has sufficient resources and the consequences are enormous. The paper aims to discuss theses issues. Design/methodology/approach – Utilizing a quantitative approach, this research compares the efficacy of a newly developed collaborative alternative education program to existing programs in New Jersey's Newark Public Schools during 2008-2009. Findings – The results indicate that the overall performance of the students enrolled in the new research models is significantly higher than in the existing program due to incentives and not administrative collaboration. Research limitations/implications – Implications for future research include: first, the need for studies to reveal enduring, universal effects of collaboration; second, longitudinal studies of the effects of collaboration on alternative education issues; and third, an evaluation of the effectiveness of collaborative training. Originality/value – This research intends to contribute to the literature concerning these distinctive types of partnerships – specifically the integration of three very different systems into a collaborative service. This single case study presents support of how these services subsist within four settings and what force they have on special services for students in alternative education in the public schools.


2012 ◽  
Vol 2 (6) ◽  
pp. 1-19
Author(s):  
Gabriel Berger ◽  
Carolina Gowland

Subject area Strategic management of nonprofit organizations. Study level/applicability This case is appropriate for graduate level program/executive education courses; advanced topics in nonprofit management or strategic management of nonprofit organizations. Case overview This case focuses on the central dilemma faced by arteBA Foundation in 2008. arteBA Foundation's chairman, Facundo Gómez Minujín, received an offer from a foreign company to purchase the art fair launched 17 years before – and by then acknowledged as the most prestigious fair in Latin America. Leading art fairs around the world were managed by for-profit companies that could view arteBA as a strategic asset to tap into new markets. Gómez Minujín called for an urgent board meeting. The young chairman had his qualms about selling the fair. In addition to corroborating arteBA's brand positioning in the region and rewarding the organization's efforts over the years, this purchasing offer afforded the possibility to undertake several projects to further develop and promote Argentine art – the true driver for most arteBA's members. The case describes the foundation's background and the fair's growth until the crossroads in November 2008. They include several accounts of instances in which the foundation took financial risks to enhance the fair's positioning, such as granting subsidized space to emerging galleries at its Young Neighborhood Program, expanding to include aesthetically risky offerings at its Open Space section, and financially supporting Brazilian galleries to attend the fair in order to enhance its Latin American scope and regional consolidation. Similarly, the case depicts how the foundation chose to uphold fair continuity in critical years (2001) amidst a dismal domestic setting. The dilemma presented by this case hinges on an organization's ability to build a market-based venture while preserving and pursuing its mission. To promote Argentine artists and art, arteBA Foundation had to help art galleries – for-profit businesses – to adopt more professional practices. Another challenge described in this case revolves around the need to “manage quality” in detriment of greater, immediate revenues. The last section revisits the central dilemma faced by arteBA Foundation. The mixed reactions of board members on the fair's purchase offer described in the introduction unfolded in a passionate debate at the board meeting. Two prevailing positions emerged in reference to the future of the organization. For some board members selling the fair afforded arteBA a chance to finally undertake new challenges, such as launching a grant program, offering financial support to artists, consolidating a new venture (South Limit), etc. Opposing board members contended that, without the fair, the foundation made no sense and that no other initiative could have such an impact on its field of choice. Finally, the board found it impossible to reach a decision on this matter in just one meeting and decided to resume its discussion after a recess. Expected learning outcomes This case has been designed to advance the following teaching objectives: gaining a better understanding of market-based ventures carried out by social organizations; discussing the alignment of market-based ventures to social missions at social organizations; adequately interpreting market trends to try to align them to a nonprofit's mission; identifying the primary capabilities needed by social organizations to manage profitable market-based ventures; developing a positive market orientation as a source of opportunities for a nonprofit; appreciating the significance of an active, committed board for market-based venture development; and highlighting the primary role of entrepreneurship and innovation when it comes to launching market-based ventures that add value to a nonprofit's brand. Supplementary materials Teaching notes are available.


2018 ◽  
Vol 30 (2) ◽  
pp. 201-217 ◽  
Author(s):  
Armand Gilinsky Jr ◽  
Sharon Lee Forbes ◽  
Rosana Fuentes-Fernández

Purpose The purpose of this paper is to investigate philanthropic practices in the US wine industry, as prior research on charitable giving by wine industry participants is limited. Earlier studies on corporate philanthropy are inconclusive about the direction and the degree of community philanthropy on organizational effectiveness. There are also notable research gaps, including the lack of research into philanthropy in small businesses and the dominance of US studies. Design/methodology/approach This paper reviews the literature on corporate social responsibility and philanthropy, presents a series of propositions and a theoretical model, sets forth a research schema to investigate to what extent philanthropic activities are motivated by altruistic as well as strategic considerations across the global wine industry and reports preliminary findings from a sample of 100 US wine producers. Findings In brief, 99 per cent of the wine businesses surveyed significantly engaged in altruistic behavior in their local communities, primarily helped local charities, donated at the median 150 cases each year, and those activities represented about 1 per cent of pre-tax profits, comparable to or above giving by other participants in other industries. Research limitations/implications As survey data were self-reported, empirical proof has yet to be obtained to support or refute the findings of this investigation. Comparisons to philanthropic practices in other wine regions of the world are not yet completed. Practical implications Wine producers pursue community stewardship and maintain good corporate citizenship to create direct benefits apart from economic growth or jobs, but future research is needed to ascertain whether motivations are primarily altruistic or strategic. Social implications Communities embrace the presence of wine businesses to foster job creation and economic activity, but remain uncertain about the other community benefits. Originality/value This exploratory paper fills a major gap in understanding with respect to examining motives for giving and expected outcomes by wine industry participants.


2016 ◽  
Vol 29 (5) ◽  
pp. 802-827 ◽  
Author(s):  
Tracy Artiach ◽  
Helen Irvine ◽  
Janet Mack ◽  
Christine Ryan

Purpose – The purpose of this paper is to strengthen the theoretical understanding of the processes through which a new regulator seeks to gain legitimacy within an existing regulatory space. The authors do this by investigating the case of the Australian Charities and Not-for-profit Commission (ACNC). Design/methodology/approach – Synthesising legitimacy theory with the concept of regulatory space, the authors analyse formal public discourse surrounding the establishment and operations of the ACNC. Findings – Regulation is essentially a context-bound political process in which a new regulator needs to establish legitimacy to ensure its survival. It must convince its constituents that it has developed processes to operate effectively and professionally in addressing constituents’ needs, to bargain authoritatively with other regulators in establishing its operational boundaries, and to engage politically with government and constituents. Over a relatively short time, the ACNC built legitimacy, despite the political threats to its formal regulatory authority. Research limitations/implications – The conclusions are based on the analysis of one case. There is scope for further investigations of the processes by which new regulators establish their legitimacy in different contexts. Practical implications – The potential for a political threat to the authority of a new regulator, and the difficulty of achieving regulatory reform, particularly in a federated system such as Australia, highlight the necessity for a new regulator to develop a compelling discourse of legitimacy. Originality/value – The authors synthesise regulatory space and legitimacy perspectives, contributing to an understanding of the processes of regulation.


2017 ◽  
Vol 15 (01) ◽  
pp. 53-73 ◽  
Author(s):  
Ricardo Chalmeta ◽  
Henna Viinikka

Purpose This paper aims to examine whether companies engaging in corporate philanthropy, a component of corporate social responsibility (CSR), disclose information about such activities publicly on their websites, analyze whether there is a relation between the kind of charitable giving (in-kind donations or financial gifts), the number of donation types, or the industry sector the company belongs to, the mention on the company website and whether there is a relation between communicate company corporate philanthropy and communicate other company CSR issues. Design/methodology/approach The research methodology was descriptive statistics research method. The data were collected during the months of June and July 2013 from the websites of 141 companies that had recently engaged in corporate philanthropy. Findings The study found that, surprisingly, a considerable portion of companies practicing corporate philanthropy do not disclose that information on their websites. This was especially the case when donations were made with product instead of in cash. Originality/value This study quantifies the fact that many companies engage in CSR through corporate philanthropy but do not communicate those activities to a wider public. This can be seen as a missed opportunity to take advantage of a variety of positive effects that companies related to CSR benefit from. On the other hand, it can also be interpreted as a missed opportunity for the NGOs to encourage their donors to “come out” with their philanthropic activities.


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