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.

Corporate philanthropy, the elements of a policy.

Mode of access: Internet.

Effects of corporate support of a charity on public perceptions of the charity

A quasi-experimental design (N=517) was used to investigate the effect on audience response to a supported charity if corporate support is featured in an advertisement. The results indicate that corporate support of a charity appears not to influence audience attitudes and donation intentions for the charity. A small portion of the audience may be motivated to donate when learning of a large corporate donation to the charity. The level of individual's favourability for the charity was the strongest predictor of their attitudes and intentions. Gender was also a predictor of more positive charity attitudes, with females reporting more positive attitudes than males for three of four charities. Managerial implications and areas for future research are discussed.

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.

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.

Third sector partnerships : opportunities and risks

The establishment by the Prime Minister of the Community Business Partnerships Board along with recent taxation reform has drawn attention to corporate philanthropy in Australia. Definitions and models are needed as each of the potential partners – government, corporations and nonprofit organisations – attempts to come to grips with opportunities. The intending partners will need to determine their responsibilities and desired outcomes so that they may work effectively towards mutually beneficial working relationships. Performance indicators need to be determined, benchmarks developed and best practice promoted. A dearth of research exists in this area (Burch, 1998; Industry Commission Report, 1995; Lyons & Hocking, 1998). More exhaustive research, collection and analysis of appropriate data will aid the process. This particular research indicates a lack of understanding between corporations and nonprofit organisations. There are risks inherent in the proposed partnerships, such as inability to reach agreement, potential for increased costs, and failure to deliver by one of the partners. This paper assesses opportunities and risks, suggests topics for high level debate, and indicates models for the development of partnerships.

A proposed approach to monitor private-sector policies and practices related to food environments, obesity and non-communicable disease prevention

Private-sector organizations play a critical role in shaping the food environments of individuals and populations. However, there is currently very limited independent monitoring of private-sector actions related to food environments. This paper reviews previous efforts to monitor the private sector in this area, and outlines a proposed approach to monitor private-sector policies and practices related to food environments, and their influence on obesity and non-communicable disease (NCD) prevention. A step-wise approach to data collection is recommended, in which the first (‘minimal’) step is the collation of publicly available food and nutrition-related policies of selected private-sector organizations. The second (‘expanded’) step assesses the nutritional composition of each organization's products, their promotions to children, their labelling practices, and the accessibility, availability and affordability of their products. The third (‘optimal’) step includes data on other commercial activities that may influence food environments, such as political lobbying and corporate philanthropy. The proposed approach will be further developed and piloted in countries of varying size and income levels. There is potential for this approach to enable national and international benchmarking of private-sector policies and practices, and to inform efforts to hold the private sector to account for their role in obesity and NCD prevention.

Business Giving, the Tsunami and Corporates as Rock Stars: Some Implications for Arts Funding?

Financial and cultural aspects of corporate giving by UK and non-UK companies in response to the December 2004 South Asia Tsunami disaster are explored in this article. Literatures on corporate giving rationales, concepts of disaster and donor activity in disasters provide an underpinning. The article seeks to make connections between this high profile if short-lived business giving and the funding of the arts that is sought from business; and to draw tentative lessons for arts funding when seeking business support. The giving accounts in the wake of the Tsunami from a non-probability sample of 56 UK companies and 16 non-UK companies were examined. Reported online to the UK charity Business in the Community, these accounts were accessed in February 2005 and scrutinized thematically. Concurrently, company financial profiles to accompany giving figures were constructed. Although linkages between donation levels and financial performance were lacking, emerging themes included the role of employees, influencing company giving and creating a climate of expectation of firms' contributions. These developments may have important implications for business funding for the arts, where leading philanthropists are prominent as individuals in the giving landscapes; but employees' collective involvement is not marked. Alternatively, cultivation of employees as would-be donors, indirectly via their firms, may be a more secure, if lower level route to funding for some arts organizations than dependence on high profile business leaders. The article considers alternative scenarios for company giving in disaster contexts, including as a sustained and lasting giving theme or as company support as a ‘one-off’ event, rock-star style. The likely development of employee power as a key element in company giving is explored; and its wider meanings for funding in arts settings, (where the giver as rock star heroine/hero is also prominent) are considered.

Descripción de La estructura organizacional del área de sostenibilidad de Corona en el año 2014

Este articulo tiene como objetivo principal describir el área de Sostenibilidad de la Organización Corona en Colombia como parte de un proyecto de investigación, que abordar los conceptos claves de Responsabilidad Social Empresarial, y a su vez los asocia con la realidad del área de Sostenibilidad de esta empresa. Esta Investigación hace parte de la implementación de un proyecto de investigación aplicada que tiene como fin consolidar la documentación existente sobre las áreas de Responsabilidad Social y Sostenibilidad de empresas con operación en Colombia. A su vez, busca observar la aplicación del concepto de estructura organizacional y gestión ambiental dentro del área para estudiar, conocer y evaluar a profundidad su funcionamiento. Se describió la situación actual y funcionamiento del área de sostenibilidad, y para ello se procedió con la elaboración de entrevistas y estudio de los documentos públicos y privados del área, mediante los cuales se analiza, organiza y presenta la información. Esto tiene como resultado presentar el funcionamiento del área de sostenibilidad en Corona y su interrelación con las demás áreas de la compañía.

O mecenato cultural como estratégia de marketing empresarial : os casos Banco Espírito Santo, Banco Português de Investimento e Caixa Geral de Depósitos

O objetivo deste estudo consiste em investigar a aplicação do marketing na atividade de mecenato cultural no contexto empresarial. Nesse sentido, foi estudado o caso de três instituições financeiras, através de uma análise aprofundada às suas ações de mecenato, de forma a compreender melhor as suas motivações. Numa primeira fase, foi elaborada uma investigação teórica não só sobre o panorama cultural e políticas de mecenato na Europa e, em particular, em Portugal, mas também a relevância da responsabilidade social no âmbito empresarial. Esta investigação pretende assim salientar o mecenato cultural enquadrado numa estratégia de marketing empresarial, num cenário em que as instituições usam o apoio financeiro à cultura como veículo para destacar o seu papel ativo na sociedade e no mercado, promovendo a sua imagem.

Ação social das empresas privadas: uma metodologia para avaliação de resultados

In the recent years Corporate Social Action (CSA) has become more and more relevant to corporate context. The aim is to benefit both poor communities and the donnor companies, as it meets the needs of their salient stakeholders. Nevertheless, there still exists considerable scepticism concerning CSA. In order to become a solid management practice, it is critcal to evidence the attained results. Up to now, the focus has been on process evaluation, that is, on the policies companies are adopting. Literature revision has shown a great need of studies related to results identification in this field. Therefore, using stakeholders` framework (according to Wood, 1991; Donaldson and Preston, 1995; Hopkins, 1997; Hamil, 1999), we have developped a methodology to evaluate CSA results, based on public and private effectiveness criteria. As we applied it to assess Xerox social action in Brazil we were able to identify the attainment degree of expected results related to the benefitted community (Mangueira) and also to some Xerox salient stakeholders (employees and clients).

Business-driven social change:a systematic review of the evidence

How can companies help change people's behaviour in order to benefit society? Organizations have the resources and market influence to effect positive change. Through product labeling, supply chain management, cause marketing, corporate philanthropy, employee volunteerism and NGO (non-government organization) partnerships, companies are helping society get active, eat healthy foods, dispose of products properly, use less energy and generally live more sustainable lives. This report reveals the three conditions necessary for changing people's behaviour that create benefits for society. The report also includes 19 mechanisms companies can use to motivate people to change and to create the capabilities and opportunities for change.