Advertisement

Why do managers give? Applying pro-social behaviour theory to understand firm giving

  • Carmen Valor
Article
  • 163 Downloads

Abstract

Some authors regard philanthropy as an expression of social responsibility; for others it is a marketing tool. At the same time, the legitimisation for philanthropy lays upon its being profit-oriented. Managers acknowledge carrying out their philanthropic contributions with this economic objective. However, certain corporate behaviours cast doubts on this self-reported motivation, and leads to think that it may be anex post rationalisation. Since this issue cannot be solved by surveying managers, in this paper the literature on the determinants is analysed in the light of the theory of pro-social behaviour. The main thesis of this paper is that managers act impelled by moral norms and not only by profit-seeking reasons. The purpose of this paper is not to rule out any other possible explanation for corporate philanthropy, but to show that the economic principle may not be sufficient to account for all corporate behaviours.

Key Words

Corporate giving pro-social behaviour corporate philanthropy conceptual paper 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Adkins, S. (1999):Cause Related Marketing. Oxford: Butterworth Heinemann.Google Scholar
  2. Austin, J.E. (2000):The Collaboration Challenge. New York: Jossey-Bass.Google Scholar
  3. Bennet, R. (1998): International Comparisons of Commercial Orientation towards Company Giving in European Nations.International Marketing Review, 15 (6), pp. 458–475.CrossRefGoogle Scholar
  4. Boatsman, J.R. and Gupta, S. (1996): Taxes and Corporate Charity: Empirical Evidence from Micro Level Panel Data.National Tax Journal, 49 (2), pp. 193–213.Google Scholar
  5. Brammer, S. and Millington, A. (2003): The Effect of Stakeholder Preferences, Organizational Structure and Industry Type on Corporate Community Investments.Journal of Business Ethics, 45 (3), pp. 213–226.CrossRefGoogle Scholar
  6. Burt, R.S. (1983): Corporate Philanthropy as a Cooperative Relation.Social Forces, 62 (2), pp. 419–449.CrossRefGoogle Scholar
  7. Campbell, D.; Moore, G. and Metzger, M. (2002): Corporate Philanthropy in the UK: Some Empirical Findings.Journal of Business Ethics, 39 (1), pp. 29–41.CrossRefGoogle Scholar
  8. Campbell, L.; Gulas, C.S. and Gruca, T.S. (1999): Corporate Giving Behaviour and Decision-Maker Social Consciousness.Journal of Business Ethics, 19 (4), pp. 375–383.CrossRefGoogle Scholar
  9. Carroll, A.B. (1999): Corporate Social Responsibility: Evolution of a Definitional Construct.Business and Society, 38 (3), pp. 268–295.CrossRefGoogle Scholar
  10. Clarke, J. (1997): Shareholders and Corporate Community Involvement in Britain.Business Ethics, 6 (4), pp. 201–207.CrossRefGoogle Scholar
  11. Cone (1997):Cone/Roper Cause Related Trends Report: Evolution of Cause Branding. Boston: Cone Inc.Google Scholar
  12. Davis, K.; Frederick, W.C. and Blomstrom, R.L. (1988):Business and Society. Concepts and Policy Issues. New York: McGraw Hill.Google Scholar
  13. De Ruyter, K. and Wetzels, M. (2000): With a Little Help from my Fans. Extending Models of Pro-Social Behavior to Explain Supporters’ Intentions to Buy Soccer Club Shares.Journal of Economic Psychology, 21 (4), pp. 387–409.CrossRefGoogle Scholar
  14. Dovidio, J.F.; Piliavin, J.A.; Gaertner, S.L.; Schroeder, D.A. and Clark III, R.D. (1991): The Arousal Cost-Reward Model and the Process of Intervention. A Review of the Evidence.Pro-Social Behavior Review of Personality and Social Psychology, 12, pp. 86–118.Google Scholar
  15. Drumwright, M. (1994): Socially Responsible Organizational Buying: Environmental Concern as a Non-Economic Buying Criterion.Journal of Marketing, 58 (3), pp. 1–19.CrossRefGoogle Scholar
  16. Eisenberg, N. (1982): Introduction. In Eisenberg, N. (ed.)The Development of Pro-Social Behavior. New York: Academic Press, pp. 1–21.Google Scholar
  17. Etzioni, A. (1986):Socio-Economics. A proposal for a New Interdisciplinary Field.Journal of Social Behavior and Personality, 1 (4), pp. 475–482.Google Scholar
  18. Etzioni, A. (1990):The Moral Dimension. Toward A New Economics. New York: The Free Press.Google Scholar
  19. Fry, L.K.; Keim, G.D. and Meiners, R.E. (1982): Corporate Contributions. Altruistic or for Profit?.Academy of Management Journal, 25 (1), pp. 94–106.CrossRefGoogle Scholar
  20. Fundación Empresa y Sociedad (1997):La Estrategia Social de la Empresa. Un enfoque de Valor. Madrid: Fundación Empresa y Sociedad.Google Scholar
  21. Fundación Empresa y Sociedad (1999):Marketing Con Causa. Cómo Añadir Valor a las Marcas Vinculándolas a Proyectos Sociales. Madrid: Fundación Empresa y Sociedad.Google Scholar
  22. Fundación Empresa y Sociedad (2002):Informe de Acción Social de la Empresa en España. Madrid: Fundación Empresa y Sociedad.Google Scholar
  23. Gelfand, D.M. and Hartmann, D.P. (1984): Response Consequences and Attributions: Two Contributors to Pro-Social Behavior. In Eisenberg, N. (ed.)The Development of Pro-Social Behavior. New York: Academic Press, pp. 167–198.Google Scholar
  24. Grzelak, J. and Derlega, V.J. (1982): Cooperation and Helping Behavior: An Introduction. In Derlega, V.J. and Grzelak, J. (eds.)Cooperation and Helping Behavior. Theories and Research. New York: Academic Press, pp. 2–15.Google Scholar
  25. Hamil, S. (1999): Corporate Community Involvement: A Case for Regulatory Reform.Business Ethics, 8 (1), pp. 14–25.CrossRefGoogle Scholar
  26. Johnson, O. (1966): Corporate Philanthropy: An Analysis of Corporate Contributions.The Journal of Business, 39 (4), pp. 489–504.CrossRefGoogle Scholar
  27. Johnson, O. and Johnson, W.L. (1970): The Income Elasticity of Corporate Philanthropy: Comment.The Journal of Finance, 25 (1), pp. 149–152.CrossRefGoogle Scholar
  28. Karylowski, J. (1982): Two Types of Altruistic Behavior: Doing Good to Feel Good or to Make the Other Feel Good. In Derlega, V.J. and Grzelak, J. (eds.)Cooperation and Helping Behavior. Theories and Research. New York: Academic Press, pp. 398–419.Google Scholar
  29. Klein, N. (2000):No Space, No Choice, No Jobs, No Logo: Taking Aim at the Brand Bullies. London: Flamingo.Google Scholar
  30. Lantos, G.P. (2001): The Boundaries of Strategic Corporate Social Responsibility.Journal of Consumer Marketing, 18 (7), pp. 595–630.CrossRefGoogle Scholar
  31. Lerner, M.J. (1982): The Justice Motive in Human Relations and the Economic Model of Man: A Radical Analysis of Facts and Fictions. In Derlega, V.J. and Grzelak, J. (eds.)Cooperation and Helping Behavior. Theories and Research. New York: Academic Press, pp. 250–280.Google Scholar
  32. McElroy, K.M. and Siegfried, J.J. (1986): The Community Influence on Corporate Contributions.Public Finance Quarterly, 14 (4), pp. 394–414.Google Scholar
  33. National Foundation for Women Business Owners (2000): The Committee of 200 and Merrill Lynch’s Center for Philanthropy and Non Profit Management. Available at [http://www.business-survival.com/reports/ NFWBOstudy.htm] (accessed at 07/07/2005).Google Scholar
  34. Navarro, P. (1988): The Income Elasticity of Corporate Contributions.Quarterly Review of Economics and Business, 28 (4), pp. 66–75.Google Scholar
  35. Parés, M. (1994):La Nueva Filantropia y la Comunicación Social: Mecenazgo, Fundación y Patrocinio. Barcelona: ESERP-PPU.Google Scholar
  36. Petroshius, S.M.; Crocker, K.E.; West, J.S.; Wu, B.T. and Wolfe, T. (1993): Strategies for Improving Corporate Philanthropy Toward Health Care Providers.Journal of Health Care Marketing, 13 (4), pp. 10–19.Google Scholar
  37. Projecció Mecenazgo Social (2000):Directorio 2000 del Patrocinio y Mecenazgo en España. Barcelona: Projecció Mecenazgo Social.Google Scholar
  38. Rosenhan, D.L.; Salovey, P.; Karylowski, J. and Hargis, K. (1981): Emotion and Altruism. In Rushton, J.P. and Sorrentino, R.M. (eds.)Altruism and Helping Behavior: Social, Personality and Developmental Perspectives. Hillsdale: Lawrence Erlbaum Associates, pp. 233–250.Google Scholar
  39. Rushton, J.P. (1981): The Altruistic Personality. In Rushton, J.P. and Sorrentino, R.M. (eds.)Altruism and Helping Behavior: Social, Personality and Developmental Perspectives. Hillsdale: Lawrence Erlbaum Associates, pp. 251–264.Google Scholar
  40. Rushton, J.P. (1982): Social Learning Theory and the Development of Pro-Social Behavior. In Eisenberg, N. (ed.)The Development of Pro-Social Behavior. New York: Academic Press, pp. 77–105.Google Scholar
  41. Sagawa, S. and Segal, E. (2000):Common Interest, Common Good: Creating Value through Business and Social Sector Partnerships. Cambridge (MA): Harvard Business School Press.Google Scholar
  42. Sargeant, A. and Jay, E. (2004):Fundraising Management. Analysis, Planning and Practice. London: Routledge.Google Scholar
  43. Schwartz, R.A. (1968): Corporate Philanthropic Contributions.Journal of Finance, 23 (3), pp. 479–497.CrossRefGoogle Scholar
  44. Schwartz, S.H. and Howard, J.A. (1981): A Normative Decision-Making Model of Altruism. In Rushton, J.P. and Sorrentino, R.M. (eds.)Altruism and Helping Behavior: Social, Personality and Developmental Perspectives. Hillsdale: Lawrence Erlbaum Associates, pp. 189–212.Google Scholar
  45. Seifert, B.; Morris, S.A. and Bartkus, B.R. (2003): Comparing Big Givers and Small Givers: Financial Correlates of Corporate Philanthropy.Journal of Business Ethics, 45 (3), pp. 195–211.CrossRefGoogle Scholar
  46. Shaver, K.G. (1975):An Introduction to Attribution Theory. Cambridge (MA): Winthrop Publishers.Google Scholar
  47. Shaver, K.G. (1977):Principles of Social Psychology. Cambridge (MA): Winthrop Publishers.Google Scholar
  48. Shaw, B. and Post, F.R. (1993): A Moral Basis for Corporate Philanthropy.Journal of Business Ethics, 12 (10), pp. 745–751.CrossRefGoogle Scholar
  49. Smith, W.J.; Wokutch, R.E.; Harrington, K.V. and Dennis, B.S. (2001): An Examination of the Influence of Diversity and Stakeholder Role on Corporate Social Orientation.Business and Society, 40, pp. 266–294.CrossRefGoogle Scholar
  50. Smithson, M.; Amato, P.R. and Pearle, P. (1983):Dimensions of Social Behavior. Oxford: Pergamon Press.Google Scholar
  51. Swap, W. C. (1991): Perceiving the Causes of Altruism. In Hinde, R.A. and Groebel, J. (eds.)Cooperation and Pro-Social Behaviour. Cambridge: Cambridge University Press, pp. 147–158.Google Scholar
  52. Sybowicz, A. and Magistrali, S. (1990):Esponsorización y Mecenazgo. Barcelona: Gestión 2000.Google Scholar
  53. Useem, M. (1988): Market and Institutional Factors in Corporate Contributions.California Management Review, 30 (2), pp. 77–88.Google Scholar
  54. Varadarajan, P.R. and Menon, A. (1988): Cause-Related Marketing: A Coalignment of Marketing Strategy and Corporate Philanthropy.Journal of Marketing, 52 (3), pp. 58–74.CrossRefGoogle Scholar
  55. Wang, J. and Coffey, B.S. (1992): Board Composition and Corporate Philanthropy.Journal of Business Ethics, 11 (10), pp. 771–778.CrossRefGoogle Scholar
  56. Williams, R. J. (2003): Women on Corporate Boards of Directors and their Influence on Corporate Philanthropy.Journal of Business Ethics, 42 (1), pp. 1–10.CrossRefGoogle Scholar

Copyright information

© Springer-Verlag 2006

Authors and Affiliations

  1. 1.Departamento de MarketingUniversidad Pontificia de Comillas, Facultad de CC. Económicas y EmpresarialesMadridSpain

Personalised recommendations