The business case for social responsibility is one of the most widely studied topics in the business and society literature that focuses on large firms. This attention is understandable because large firms have an obligation to shareholders who, as commonly assumed, seek to maximize returns on their investments, in turn, pressing corporate managers to show that firms’ expenditures in social engagement would pay off. Small firms, on the other hand, rarely face such pressures, yet the BCSR logic is increasingly applied (...) to small firms as well. Our primary objective in this paper is to examine whether and how much do small firm owners’ perceptions of BCSR affect the firm’s social engagement. In finding a fine-grained answer to those questions, we consider BCSR as a two-dimensional construct consisting of tangible and intangible benefits, and also integrate the BCSR perspective with the slack resource perspective to offer a motivation-capacity lens to examine firm’s social engagement. Drawing on a multi-industry sample of 478 small firms in the US, we find that while small firm owners’ perceptions about potential tangible benefits of social engagement are not related to the firm’s social engagement, perceptions about potential intangible are positively related. Firm's financial performance is also positively related to its social engagement, but there is no interaction between potential benefits and financial performance. This study contributes to an improved understanding about small firms’ social engagement, which still remains an understudied area. Our results are in line with studies which argue that firms’ social engagement is a response to institutional factors. (shrink)

We review some 30 years of academic research on corporate philanthropy, taking stock of the current state of research about this rising practice and identifying gaps and puzzles that deserve further investigation. To do so, we examine a total of 162 academic papers in the fields of management, economics, sociology, and public policy, and analyze their content in a systematic fashion. We distinguish four main lines of inquiry within the literature: the essence of corporate philanthropy, its different drivers, the way (...) it is organized, and its likely outcomes. After reviewing the main findings of the literature, we build on several research gaps to highlight directions for future research on corporate philanthropy with an interest in strengthening our understanding of this fascinating phenomenon at the crossroads of business and society. (shrink)

The conceptual literature increasingly portrays corporate philanthropy (CP) as an old-fashioned and ineffective operationalization of a firm’s corporate social responsibility. In contrast, empirical research indicates that corporations of all sizes, and both in developed and emerging economies, actively practice CP. This disadvantaged status of the concept, and research, on CP, complicates the advancement of our knowledge about the topic. In a systematic review of the literature containing 122 journal articles on CP, we show that this business practice is loaded with (...) unique characteristics, strengths, and weaknesses, and both conceptual and practical challenges that require renewed attention. We identify six interrelated but distinctive research themes in the literature: concept, motives, determinants, practices, business outcomes, and social outcomes. Dividing the literature on CP into six research themes creates an insightful comprehensive map of this intellectual terrain. Moreover, we distinguish among the level at which CP is analyzed: individual, organizational, institutional, or any combination of these levels. The review reveals significant gaps in the knowledge on CP. Most importantly we find that the conceptualization is limited, the research is mostly quantitative, the effects of CP on society are severely under-researched, and there is a lack of multilevel analyses. A detailed future research agenda is offered, including specific suggestions for research designs and measurements. (shrink)

This article develops a sociological theory of ambivalence to explain several puzzling and contradictory ethical attitudes of business people: (1) a simultaneous disposition to comparatively more self-interested and more charitable behavior than many other occupational groups and (2) a moderate level of receptiveness to inculcation of moral principles through social channels such as higher education. We test the theory by comparing the way that business students rate the ethical acceptability of various ethically challenging scenarios with the way that criminal justice (...) students rate these same scenarios. We also explore the malleability of ethical views by measuring differences between the responses of sophomores and seniors. The data generally support hypotheses based on a theory of ambivalence. At the same time, however, we also report on findings that suggest alternative explanations to ambivalence. (shrink)

The purpose of cause-related marketing is to capitalise on a firm’s social engagement initiatives to achieve a positive return on a firm’s social investment. This article discusses two strategic perspectives of cause-related marketing and their impact on a firm’s decision-making regarding campaign development. The instrumental dominant logic of cause-related marketing focuses on attracting customers’ attention in order to generate sales. The relational dominant logic of cause-related marketing focuses on building relationships with the target stakeholders through the enhancement of a firm’s (...) legitimacy. The combination of these two types of logic gives rise to four types of cause-related marketing: altruistic, commercial, social and integrative. This paper uses the qualitative method to explore a firm’s marketing decision choices regarding campaign-related decision dimensions—campaign duration, geographical scope, cause selection, and implementation strategy—for each type of cause-related marketing. The finding provides theoretical, managerial and public policy implications. (shrink)

Using a sample of Chinese listed firms for the period of 2004–2010, this study examines the impact of religion on corporate philanthropic giving. Based on hand-collected data of religion and corporate philanthropic giving, we provide strong and robust evidence that religion is significantly positively associated with Chinese listed firms’ philanthropic giving. This finding is consistent with the view that religiosity has remarkable effects on individual thinking and behavior, and can serve as social norms to influence corporate philanthropy. Moreover, religion and (...) corporate philanthropic giving have a significantly weaker (less pronounced) positive association for state-owned enterprises than for non-state-owned enterprises. The results are robust to a variety of sensitivity tests. Our results highlight religious influence on corporate philanthropic giving in contemporary China, an old traditional country with a typical communist economy. (shrink)

As part of their corporate social responsibility, many organizations practice cause-related marketing, in which organizations donate to a chosen cause with every consumer purchase. The extant literature has identified the importance of the fit between the organization and the nature of the cause in influencing corporate image, as well as the influence of a connection between the cause and consumer preferences on brand attitudes and brand choice. However, prior research has not addressed which cause composition most appeals to consumers or (...) the impact of cause choice on corporate image. A between-subjects field experiment in the Netherlands examines the influence of three core cause attributes—cause type, cause scope, and cause acuteness—on consumers’ perceptions of corporate image. Furthermore, this experiment examines the extent to which consumer identification with the cause mediates the influence of the cause attributes on corporate image. The findings indicate that identification with the cause leads to more positive evaluations of marketing campaigns for cause type and cause scope. Also, however, our results uncover a negative direct relationship between cause scope and corporate image. Cause acuteness is only marginally influential in corporate image perceptions. By proposing and testing a comprehensive model of the influence of cause attributes on corporate image in cause-related marketing, this article provides important implications and suggests avenues for further research. (shrink)

This study examines the extent to which corporate responsibility influences the demand for shares by institutions. The study follows Bushee (Account Rev 73(3):305–333, 1998 ) in categorising institutions as dedicated or transient. The demand for shares is organised according to three factors: a long-term factor, corporate responsibility; a short-term factor, market liquidity; and a time-independent factor, portfolio theory. The rank and importance of the factors for the different types of institutional investor are analysed. For one of two types of dedicated (...) institution, corporate responsibility is as important as portfolio theory in influencing the demand for shares. For all dedicated institutions, corporate responsibility influences the demand for shares more than market liquidity. For two of the three types of transient institution, market liquidity is the most important factor in share selection. For all transient institutions, the least important factor is corporate responsibility. Findings suggest that corporate responsibility positively and significantly influences the demand for shares by dedicated institutions. The discussion considers the extent to which these trends are constitutive of significant shifts in ethicality within the context of institutional investment. Looking at this from within a highly institutionalised Anglo market model, dedicated institutions’ commitment to broader and longer-term concerns could be interpreted as a small but significant step towards a more axiologically informed ethical business practice. Such a form of engagement calls for sensitive attention to a fuller range of features deemed to be relevant to investment decisions, as opposed to more narrow reliance on legislation, codes of practice and fiduciary principles. (shrink)

This paper provides an alternative theoretical conceptualisation of corporate social responsibility (CSR) in order to further our understanding of prosocial organisational behaviour. We argue that consumption provides a perspective that enables theorists to escape the confines of existing CSR literature. In our view the organisation is re-imagined as an arena of consumption where employees are engaged in a quest for value, constructing and confirming their identities as consumers. Using the award-winning tour operator Laskarina Holidays as an illustrative case, it is (...) suggested that CSR can provide combinations of functional, social, emotional, epistemic and conditional value. This new perspective on CSR facilitates the coexistence of a plurality of values that are relativistically constructed and narrativised by organisational stakeholders. Our consumption paradigm provides a thought provoking means of reconciling divergent perspectives and encourages further interdisciplinary research. We argue that future research should begin, not by asking the question of why organisations assume responsibility, but by contemplating the notion of why organisations consume responsibility. (shrink)

As part of their corporate social responsibility, many organizations practice cause-related marketing, in which organizations donate to a chosen cause with every consumer purchase. The extant literature has identified the importance of the fit between the organization and the nature of the cause in influencing corporate image, as well as the influence of a connection between the cause and consumer preferences on brand attitudes and brand choice. However, prior research has not addressed which cause composition most appeals to consumers or (...) the impact of cause choice on corporate image. A between-subjects field experiment in the Netherlands examines the influence of three core cause attributes—cause type, cause scope, and cause acuteness—on consumers’ perceptions of corporate image. Furthermore, this experiment examines the extent to which consumer identification with the cause mediates the influence of the cause attributes on corporate image. The findings indicate that identification with the cause leads to more positive evaluations of marketing campaigns for cause type and cause scope. Also, however, our results uncover a negative direct relationship between cause scope and corporate image. Cause acuteness is only marginally influential in corporate image perceptions. By proposing and testing a comprehensive model of the influence of cause attributes on corporate image in cause-related marketing, this article provides important implications and suggests avenues for further research. (shrink)

Social pressure on companies is leading to a growing concern about the corporate relationship with the community. On the other hand, the progressive reduction on governments' grants leads nonprofits to diversify their sources of revenue and to turn to companies for funds. However, there has been a change in this relationship. Their margin for cooperation is now broader, and the level of involvement is deeper. This results in the formation of alliances between them. Based on the literature and the results (...) of a series of interviews with marketing managers at nonprofits and companies, this paper analyses the opportunities and risks associated to this type of partnerships, with a special emphasis in the nonprofits' needs and mission. Secondly, we describe how Spanish nonprofits are hedging the risks. Finally, guidelines and information sources are provided in order to reduce the uncertainty contingent to this type of alliances. (shrink)

This study investigates financial correlates of corporate philanthropy in Fortune 1000 companies using structural equation modeling. The results suggest that cash flow (one of the most discretionary types of organizational slack) has a significant impact on a firm’s cash donations to charitable causes, but monetary donations do not affect firm financial performance. These findings support the accepted view of corporate philanthropy as a discretionary social responsibility and the traditional thinking about firm giving in the business and society literature—that doing well (...) enables doing good. Contrary to some contemporary thinking, the findings imply no significant effect on profits from corporate generosity. (shrink)

In this article, we propose that giving in cash and non-cash differ in their relation with the giving firm’s future corporate financial performance and only cash giving is associated with future CFP. Using a novel dataset from ASSET4 that differentiates corporate giving over a sample period of 2002–2012, we examine three competing hypotheses: agency cost hypothesis that cash giving reflects agency cost and destroys value for shareholders, investment hypothesis that cash giving is an investment by management that aims for better (...) future return, and information hypothesis that cash giving has informational value to shareholders as cash is a critical resource at a firm and giving is a decision by managers who are insiders. We find that indeed, only cash giving is positively associated with future CFP and firm value, measured by Fama–French five-factor abnormal risk-adjusted stock returns, future return on assets, and Tobin’s Q. In addition, we find that the positive association exists only between excess, i.e., unexpected, but not expected cash giving and future CFP. Our empirical findings support the information hypothesis, but neither the agency hypothesis nor the investment hypothesis, and are robust to a number of endogeneity tests, including orthogonalized cash giving, instrumental variable regression using geography-based instruments, and propensity score matching. Furthermore, we show that the positive association between future CFP and unexpected cash giving is only pronounced at firms with good governance and relatively higher sales growth where agency problems are less likely, and at firms with no alternative mechanisms to demonstrate the strength of cash flow. Additionally, we do not find evidence that suggests in-kind giving to possess any informational value. (shrink)

Cause-related marketing, defined as a firm’s communication activities designed to promote a consumer good or service by including an offer to contribute a specified amount to a designated nonprofit cause, has become a preponderant practice. In tandem with the development of CrM activities, criticism of CrM has increased; critics note that some CrM claims mislead consumers regarding their purchases’ donative impact. Critics such as consumers and nonprofit advocates are using ad parodies, noncommercial messages that mimic an actual advertisement. In this (...) context, the study investigates how these ad parodies can result in a detrimental impact on consumers’ perceptual and behavioral evaluations of the sponsoring brand. By implementing a tightly controlled experiment comparing actual CrM campaigns and CrM parodies, the author shows that the detrimental effects of CrM parodies on brand attitude and word-of-mouth valence can be explained by greater skepticism toward the firm’s sincere and altruistic motivations. In addition, the author shows that a robust asymmetry emerges in which CrM ad parodies damage perceptual and behavioral evaluations of brands more than actual CrM campaigns improve them. The authors replicate the results for two kinds of critics and two types of brands. The results provide useful implications for theory and practice, documenting the backfire effect of poorly designed CrM, which may urge brands to move toward more self-regulation of CrM practices. (shrink)