Abstract
As an important component of corporate social responsibility, corporate philanthropy (CP) in the context of developed countries has received increasing attention from scholars in recent years. Little attention has been paid to CP in emerging markets, especially in China. What influences CP decisions and level of giving in China? To answer this question, we integrate stakeholder and institutional theory to identify the particular determinants of CP in China. We develop a conceptual framework of the determinants of CP in China, and find that government (central and local), the media and customers (current and potential) influence enterprises’ donations in China. Moreover, we draw on case studies of three Chinese companies of different ownership type. Our findings generally indicate that CP is a strategic choice that enables Chinese enterprises to achieve a competitive advantage in dealing with institutional pressure and their various stakeholders’ requirements. We also provide practical implications for Chinese enterprises.
This is a preview of subscription content, log in via an institution to check access.
References
Barkema HG, Chen X, George G, Luo Y, Tsui AS (2015) West meets east: new concepts and theories. Acad Manag J 58(2):460–479
Carroll AB (1999) Corporate social responsibility. Bus Soc 38(3):268–295
Chen Z, Cao Y (2016) Chinese private corporate philanthropy: social responsibility, legitimacy strategy, and the role of political capital. Chinese Sociological Review 48(2):108–136
Dennis BS, Buchholtz AK, Butts MM (2009) The nature of giving a theory of planned behavior examination of corporate philanthropy. Bus Soc 48(3):360–384
Donaldson T, Preston LE (1995) The stakeholder theory of the corporation: concepts, evidence, and implications. Acad Manag Rev 20(1):65–91
Duran JJ, Bajo N (2014) Institutions as determinant factors of corporate responsibility strategies of multinational firms. Corp Soc Responsib Environ Manag 21:301–317
Fang L, Peress J (2009) Media coverage and the cross-section of stock returns. J Financ 64(5):2023–2052
Firth M, Fung PMY, Rui OR (2007) Ownership, two-tier board structure, and the informativeness of earnings-evidence from China. J Account Public Policy 26:463–496
Gao Y, Hafsi T (2015) Government intervention, peers’ giving and corporate philanthropy: evidence from Chinese private SMEs. J Bus Ethics 132(2):433–447
Gautier A, Pache A (2015) Research on corporate philanthropy: a review and assessment. J Bus Ethics 126:343–369
Jia M, Zhang Z (2011) Agency costs and corporate philanthropic disaster response: the moderating role of women on two-tier boards-evidence from People’s Republic of China. Int J Hum Resour Manag 22(9):2011–2031
Lev B, Petrovits C, Radhakrishnan S (2010) Is doing good good for you? How corporate charitable contributions enhance revenue growth. Strateg Manag J 31(2):182–200
Li W, Zhang R (2011) Corporate social responsibility ownership structure and political interference: evidence from China. J Bus Ethics 96:631–645
Li S, Song X, Wu H (2015) Political connection, ownership structure, and corporate philanthropy in China: a strategic-political perspective. J Bus Ethics 129(2):399–411
North CD (1990) Institutions, Institutional Change and Economic Performance. Cambridge, UK: Cambridge University Press
Oliver C (1991) Strategic responses to institutional processes. Acad Manag Rev 16:145–179
Peng MW (2002) Towards an institutional-based view of business strategy. Asia Pac J Manag 19:251–267
Peng MW, Heath PS (1996) The growth of the firm in planned economies in transition: institutions, organizations, and strategic choice. Acad Manag Rev 21(2):492–528
Saiia DH, Carroll AB, Buchholtz AK (2003) Philanthropy as strategy when corporate charity “begins at home”. Bus Soc 42(2):169–201
Scott WR (2008) Institutions and organizations, 3rd edn. Sage, Thousand Oaks
Shan L, Gan L, Zheng T (2008) Corporate donations and economic incentives: an empirical study based on corporate donations following the 5.12 earthquake in China. Economic Research Journal 53(11):51–61 (in Chinese)
Wang H, Qian C (2011) Corporate philanthropy and corporate financial performance: the roles of stakeholder response and political access. Acad Manag J 54(6):1159–1181
Wang H, Choi J, Li J (2008a) Too little or too much? Untangling the relationship between corporate philanthropy and firm financial performance. Organ Sci 19(1):143–159
Wang Q, Wong TJ, Xia L (2008b) State ownership, the institutional environment, and auditor choice: evidence from China. J Account Econ 46(1):112–134
Williams RJ, Barrett JD (2000) Corporate philanthropy, criminal activity, and firm reputation: is there a link? J Bus Ethics 26(4):341–350
Xin KK, Pearce JL (1996) Guanxi: connections as substitutes for formal institutional support. Acad Manag J 39(6):1641–1658
Zhang R, Rezaee Z, Zhu J (2009) Corporate philanthropic disaster response and ownership type: evidence from Chinese firms’ response to the Sichuan earthquake. J Bus Ethics 91(1):51–63
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Section Editor information
Rights and permissions
Copyright information
© 2018 Springer Nature Singapore Pte Ltd.
About this entry
Cite this entry
Liu, X. (2018). Corporate Philanthropy in China: Response to Institutional Pressure and Stakeholders’ Requirements. In: Foo, CT. (eds) Handbook of Chinese Management. Springer, Singapore. https://doi.org/10.1007/978-981-10-2442-9_6-1
Download citation
DOI: https://doi.org/10.1007/978-981-10-2442-9_6-1
Received:
Accepted:
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-10-2442-9
Online ISBN: 978-981-10-2442-9
eBook Packages: Springer Reference Business and ManagementReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences