Lin Zhang, Shenjiang Mo, Honghui Chen and Jintao Wu
This paper aims to demonstrate that corporate philanthropy can be driven from the bottom to the top. In particular, the authors investigate whether employees’ donations influence…
Abstract
Purpose
This paper aims to demonstrate that corporate philanthropy can be driven from the bottom to the top. In particular, the authors investigate whether employees’ donations influence corporate philanthropy and under what conditions this effect occurs.
Design/methodology/approach
The sample consists of Chinese listed firms that disclosed the amount employees donated in response to the Sichuan earthquake in 2008. The Heckman two-stage selection model is applied to examine the effect of employees’ donations on corporate philanthropy and the conditions under which this effect occurs.
Findings
The results show that employees’ donations are positively associated with corporate philanthropy. Furthermore, a higher percentage of females in top management teams can significantly strengthen the effect of employees’ donations on corporate philanthropy. When the average age of the top management team members is high, the influence of employees’ donations on corporate philanthropy is stronger.
Practical implications
This is an empirical study that helps to predict corporate philanthropy. Another practical implication is that employees should be recognized as an important element of corporate social responsibility.
Social implications
The results encourage employees to become drivers of corporate social responsibility.
Originality/value
This study contributes to the corporate social responsibility literature by demonstrating that corporate philanthropy can be driven from the bottom to the top. Moreover, this study integrates signaling theory into the study of corporate social responsibility. Finally, this study identifies two important contingent factors that strengthen the effect of employees on top managers’ decisions about corporate social responsibility.
Details
Keywords
Lin Zhang, Shenjiang Mo and Honghui Chen
From an institutional perspective, this study empirically examines whether institutional pressures, such as industry pressures and public attention, significantly influence…
Abstract
Purpose
From an institutional perspective, this study empirically examines whether institutional pressures, such as industry pressures and public attention, significantly influence corporate philanthropic disaster responses (CPDRs). Furthermore, this paper aims to examine the moderating role of a company’s prior history of philanthropic donation.
Design/methodology/approach
This paper uses secondhand data from 217 Chinese listed companies that responded philanthropically to the 2008 Sichuan Earthquake.
Findings
This paper finds that both industry pressure and public attention are positively associated with companies’ donations; their prior history of philanthropic donations significantly moderates these relationships such that these relationships become stronger and for companies that have prior histories of small philanthropic donations.
Originality/value
First, this paper contributes to the philanthropy literature by identifying two kinds of institutional pressures (i.e. industry pressure and public attention) that exert great influences on CPDR contributions. Second, by studying the moderating role of firms’ prior philanthropic history, this study contributes to the understanding of companies’ different reactions to institutional pressures. In addition to the theoretical contribution, this paper encourages companies to proactively establish a sustainable philanthropic giving plan rather than being passively driven by external stakeholders.