Online from: 1988
|Title:||Corporate charitable giving, multinational companies and countries of concern|
|Author(s):||Brammer S J, Pavelin S, Porter L A|
|Journal:||Journal of Management Studies, Jun 2009, Volume: 46 Issue: 4 pp.575-596 (22 pages)|
|Keywords:||Business Ethics, Charitable Donations, Civil And Political Rights, Ethics, International Trade, Multinationals, Organizational Behaviour, Social Responsibility, Surveys, United Kingdom|
|Article type:||Research paper|
|Reference:||38AM260 (Permanent URL)|
Design/methodology/approach - A review of the literature of corporate charitable contributions, emphasizing their strategic role in the management of increasing pressures on companies to become more socially responsible, is presented. Reports the analysis of data derived from company accounts relating to the charitable donations and support provided by a sample of 305 UK companies, drawn from the FTSE All-Share index of the largest companies listed on the London Stock Exchange (LSE).
Findings - The results indicated evidence of a positive effect for a presence in particular countries but not for internationalization as such. Concludes that the main characteristic of such countries is a lack of political rights and/or civil liberties, while the positive impact on charitable giving is restricted to a presence in only those countries that are, according to Freedom House indicators, most lacking in these areas. Concludes that charitable giving is related to, and may well be a vital part of, corporate internationalization to countries associated with political and civil rights concerns, while highlighting a mode of corporate response to stakeholder concerns and pressures that is qualitatively different from those suggested in earlier conceptual literatures, namely offsetting.
Research limitations/implications - The research was limited by the cross-sectional nature of the study and future research may extend the analysis to the link between charitable giving and the geographical diversification of companies.
Originality/value - Contributes to the literature by extending the literature on corporate charitable giving to examine the role played by the pattern of corporate internationalization in shaping charitable donation.