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Diversity of Managerial Perspectives from Inside China pp 115–126Cite as

Corporate Eleemosynary Behavior

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Part of the book series: Managing the Asian Century ((MAAC))

Abstract

Companies are using their eleemosynary programs more as strategic tools to improve their social reputations. In this chapter, the editor firstly provided his overview on China’s corporate responses to the Wenchuan earthquake and, secondly, the diversity of corporate perspectives on the motivation of eleemosynary behavior. Sampling on 908 listed companies, the determinants of corporate eleemosynary behaviors were examined. In a summary, medium and small companies mostly donated 1.5 million RMB each, and large listed companies each donated 10.5 million RMB; ownership, education, and employment duration of corporate leaders have a positive effect on donation for the disaster, while company asset has a negative effect; total assets, debt asset ratio, ownership, and education of corporate leaders are negatively linked to donation size. These results can be used to help decision-makers to predict competitors’ decisions on donation amount when responding to a disaster and understand the relationship between chief executive officer and business decision-making. For the board members or senior executives, they should be aware of the influence of presidential transition on corporate eleemosynary activities because such change may affect a firm’s reputation and image. The two levels of donation sizes allow decision-makers to select the proper donation amount, consistent with the financial performance at the strategic level, which will be tremendously helpful to implement the differentiation strategy for the donation competition. Meanwhile, with the increasing number of corporate eleemosynary activities, it is better for the Chinese government to construct the supervision mechanism to prevent against the donation fraud.

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Author information

Authors and Affiliations

  1. School of Management, University of Science and Technology of China, Hefei, China

    Fei Wang & Jiuchang Wei

Authors
  1. Fei Wang
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  2. Jiuchang Wei
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Corresponding author

Correspondence to Fei Wang .

Editor information

Editors and Affiliations

  1. School of Management, Harbin Institute of Technology, Harbin, Heilongjiang, China

    Check Teck Foo

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© 2016 Springer Science+Business Media Singapore

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Wang, F., Wei, J. (2016). Corporate Eleemosynary Behavior. In: Foo, C. (eds) Diversity of Managerial Perspectives from Inside China. Managing the Asian Century. Springer, Singapore. https://doi.org/10.1007/978-981-287-555-6_8

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