Agency problems of corporate philanthropy

Evaluating agency theory and optimal contracting theory views of corporate philanthropy, we find that as corporate giving increases, shareholders reduce their valuation of firm cash holdings. Dividend increases following the 2003 Tax Reform Act are associated with reduced corporate giving. Using a natural experiment, we find that corporate giving is positively (negatively) associated with CEO charity preferences (CEO shareholdings and corporate governance quality). Evidence from CEO-affiliated charity donations, market reactions to insider-affiliated donations, its relation to CEO compensation, and firm contributions to director-affiliated charities indicates that corporate donations advance CEO interests and suggests misuses of corporate resources that reduce firm value.

Corporate philanthropy, reputation risk management and shareholder value: A study of Australian corporate giving

This study examines the role of corporate philanthropy in the management of reputation risk and shareholder value of the top 100 ASX listed Australian firms for the three years 2011-2013. The results of this study demonstrate the business case for corporate philanthropy and hence encourage corporate philanthropy by showing increasing firms’ investment in corporate giving as a percentage of profit before tax, increases the likelihood of an increase in shareholder value. However, the proviso is that firms must also manage their reputation risk at the same time. There is a negative association between corporate giving and shareholder value (Tobin’s Q) which is mitigated by firms’ management of reputation. The economic significance of this result is that for every cent in the dollar the firm spends on corporate giving, Tobin’s Q will decrease by 0.413%. In contrast, if the firm increase their reputation by 1 point then Tobin’s Q will increase by 0.267%. Consequently, the interaction of corporate giving and reputation risk management is positively associated with shareholder value. These results are robust while controlling for potential endogeneity and reverse causality. This paper assists both academics and practitioners by demonstrating that the benefits of corporate philanthropy extend beyond a gesture to improve reputation or an attempt to increase financial performance, to a direct collaboration between all the factors where the benefits far outweigh the costs.

Rethinking the digital divide: from philanthropy to isonomia..

The digital divide has been, at least until very recently, a major theme in policy as well as interdisciplinary academic circles across the world, as well as at a collective global level, as attested by the World Summit on the Information Society. Numerous research papers and volumes have attempted to conceptualise the digital divide and to offer reasoned prescriptive and normative responses. What has been lacking in many of these studies, it is submitted, is a rigorous negotiation of moral and political philosophy, the result being a failure to situate the digital divide - or rather, more widely, information imbalances - in a holistic understanding of social structures of power and wealth. In practice, prescriptive offerings have been little more than philanthropic in tendency, whether private or corporate philanthropy. Instead, a theory of distributive justice is required, one that recovers the tradition of emancipatory, democratic struggle. This much has been said before. What is new here, however, is that the paper suggests a specific formula, the Rawls-Tawney theorem, as a solution at the level of analytical moral-political philosophy. Building on the work of John Rawls and R. H. Tawney, this avoids both the Charybdis of Marxism and the Scylla of liberalism. It delineates some of the details of the meaning of social justice in the information age. Promulgating a conception of isonomia, which while egalitarian eschews arithmetic equality (the equality of misery), the paper hopes to contribute to the emerging ideal of communicative justice in the media-saturated, post-industrial epoch.

Notes on the History of Social Work: An Examination of the Transition from Philanthropy to Professional Social Work in Ireland

The objective of the article is to examine the way in which social work in Ireland evolved from practices of philanthropy in the late 19th century to a distinct professional strategy in the present. Results: The results of archival research show that philanthropy in Ireland was provided almost exclusively by religious organizations and was constructed within a discourse of sectarianism and rivalry between the two main denominations, Catholic and Protestant, up to the 1960s. It is only in the past 30 years that social work has become firmly established as a secular strategy. Conclusions: It is concluded that although social work is now clearly distinct from voluntary and religious-based social work practices, some of its present principles and practices remain continuous with its historical antecedents.

(Re)Vitalizing Philanthropy: The Emergence of Indigenous Philanthropy and its Implications for Civil Society throughout the Developing World

As developing countries have become more integrated within the global economy, new, developing world-based economic elites have emerged as important philanthropists and development actors. The burgeoning trend of indigenous philanthropy holds particularly important implications for traditionally resource scarce civil society throughout the developing world. Unlike their Western – and particularly US based – counterparts, these foundations emerged from the context in which they focus their projects. This paper explores whether and how the rise of an indigenous philanthropic sector holds promise for the expansion and consolidation of civil society in the developing world in light of the various limited capacities in which this sector operates.

How can strategic philanthropy contribute to innovation for companies

This investigation proposes to explore the existing link between a strategic conception of philanthropy and innovation. Indeed, the nature of the research question relies on an unexplored field in the CSR and Innovation management academic literature. It starts with the interest to know which the benefits are for a firm encouraged to invest strategically in philanthropy. In this regard, the analysis contributes in fitting this gap by following different objectives in an exploratory perspective. Throughout the research it will be analyzed the concept and the current and past contributions on the different branches of innovation (product innovation, managerial innovation, technological innovation), to accentuate the relation between an accurate strategic approach to philanthropy and the impact on the organizational value. Indeed, analyzing philanthropic innovation may provide insights about business opportunities and notions related to social investments and profit. That aspect includes the link between those strategic decisions that a firm can use to maximize those investments as it was part of their core business. It also proves the existing link between CSR and innovation, and the possibilities that the enterprises have towards this subject.

The Philanthropy Scale: a Sociological Perspective in Measuring New Forms of Pro Social Behaviour

In wealthy countries, philanthropy is conspicuous back on stage. It appears in new forms, worldwide. As a result, scholarly attention for philanthropy is growing. Philanthropic goals refer to persons, groups and communities who, in most cases, are not personally known to the giver. In research, however, philanthropic motivations of individuals are usually measured by socio-psychological scales which presuppose direct interactions. Measuring philanthropy could therefore be improved by incorporating a sociological frame of reference as well. As a starting point, this article presents a preliminary version of the philanthropy scale that has been tested in the panel survey of the Giving in the Netherlands (GIN) study. The results are discussed in terms of shortcomings and challenges for further research.

Jewish Philanthropy : an exposition of principles and methods of Jewish social service in the United States

by Boris D. Bogen

Securing one's livelihood. Philanthropy in a mixed economy of welfare in the early 20th century

Since the late 19th century different social actors have played an important role in providing social security in Switzerland. Cooperatives, philanthropic organisations, social insurances, and the poor relief of the communes were all part of a "mixed economy of welfare". This article examines how the different actors in this "mixed economy" worked together, and asks what forms of help they supplied. It raises the question of whether a dichotomy between public and private forms of relief can be traced in the Swiss case. Did democratically legitimised processes of redistribution shape the social security system? Or was social security rather funded by private relief programs? The author argues that in the early 20th century, a complex public-private mix structured the Swiss welfare state and the poor often depended on both public and private funding. In this system, financially potent philanthropic organisations successfully contested the legal power of public actors.

Modern Methuselahs; or, Short biographical sketches of a few advanced nonagenarians or actual centenarians who were distinguished in art, science, literature, or philanthropy. Also, brief notices of some individuals remarkable chiefly for their longevity.

Introduction.--"Long-lasting."--St. Anthony the Great.-- Joannes Cantacuzenus, emperor of the East.--George Gemisthus Pletho.--Luigi Cornaro.--Titian.--Fontenelle.--Thomas Amory.--A group of far-advanced nonagenarians.--Eva Maria Garrick.--Caroline Lucretia Herschel.--Mary Somerville.--Sir Moses Montefiore.--Martin Joseph Routh.--Mr. Thoms' investigated case of centenarianism.--A group of unquestionable centenarians.--A few recent and probable cases of centenarianism.--Conclusion.