An exploratory study of wine business philanthropy in the USA

Abstract

Purpose The purpose of this paper is to investigate philanthropic practices in the US wine industry, as prior research on charitable giving by wine industry participants is limited. Earlier studies on corporate philanthropy are inconclusive about the direction and the degree of community philanthropy on organizational effectiveness. There are also notable research gaps, including the lack of research into philanthropy in small businesses and the dominance of US studies. Design/methodology/approach This paper reviews the literature on corporate social responsibility and philanthropy, presents a series of propositions and a theoretical model, sets forth a research schema to investigate to what extent philanthropic activities are motivated by altruistic as well as strategic considerations across the global wine industry and reports preliminary findings from a sample of 100 US wine producers. Findings In brief, 99 per cent of the wine businesses surveyed significantly engaged in altruistic behavior in their local communities, primarily helped local charities, donated at the median 150 cases each year, and those activities represented about 1 per cent of pre-tax profits, comparable to or above giving by other participants in other industries. Research limitations/implications As survey data were self-reported, empirical proof has yet to be obtained to support or refute the findings of this investigation. Comparisons to philanthropic practices in other wine regions of the world are not yet completed. Practical implications Wine producers pursue community stewardship and maintain good corporate citizenship to create direct benefits apart from economic growth or jobs, but future research is needed to ascertain whether motivations are primarily altruistic or strategic. Social implications Communities embrace the presence of wine businesses to foster job creation and economic activity, but remain uncertain about the other community benefits. Originality/value This exploratory paper fills a major gap in understanding with respect to examining motives for giving and expected outcomes by wine industry participants.

Viniculture and Tourism in the New World of Wine: a literature review from the American continent

“…To consolidate the commercialization of wines, it has been proposed to have greater participation in fairs, wine events, and pairings [81] and look for alternatives in hotel companies to publicize new products [83]. In some countries, such as the USA, marketing actions have been focused on strengthening the motivations for visiting wineries based on charitable events and activities [84]. It is essential to consider that there is no government support for these actions in some emerging countries.…”