Corporate Contributions: Altruistic or For-Profit?

Fry, Louis W.; Keim, Gerald D.; Meiners, Roger E.

doi:10.2307/256026

Cited by 210 publications

(125 citation statements)

References 12 publications

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“…Panel C of Table 1 indicates that high customer sensitivity firms are substantially larger in sales, net income and market value than low customer sensitivity firms. Consistent with prior research (e.g., Fry et al, 1982), consumer-focused firms give more to charity than their industrial goods counterparts.…”

Section: Data and Empirical Models Sample And Descriptive Statisticssupporting

confidence: 85%

“…Most prior empirical research on corporate contributions treats contributions as the dependent variable and focuses on identifying the determinants of the level of giving. For example, several studies document a positive association between advertising and corporate giving (Schwartz, 1968;Fry, Keim, and Meiners, 1982;Navarro, 1988;Boatsman and Gupta, 1996;Fisman, Heal, and Nair, 2006). Johnson (1966) reports that firms in industries characterized by rivalry contribute more than firms in industries characterized by perfect competition or monopoly because rival firms can differentiate themselves with contributions, among other things, whereas competitive firms cannot afford to and monopolists have no reason to.…”

Section: Corporate Philanthropy and Revenuesmentioning

confidence: 99%

See 1 more Smart Citation

Is doing good good for you? how corporate charitable contributions enhance revenue growth

Lev¹,

Petrovits²,

Radhakrishnan³

2009

Strategic Management Journal

730

618

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Section: Data and Empirical Models Sample And Descriptive Statisticssupporting

confidence: 85%

Section: Corporate Philanthropy and Revenuesmentioning

confidence: 99%

Is doing good good for you? how corporate charitable contributions enhance revenue growth

Lev¹,

Petrovits²,

Radhakrishnan³

2009

Strategic Management Journal

730

618

View full text Add to dashboard Cite

“…Fry et al [12] insist that a charitable activity is based on the financial strategy of facilitating activities that contribute toward society. Lantos [13] as well as Porter and Kramer [14] define strategic CSR activity that simultaneously benefits the firm and society.…”

Section: Strategic Csrmentioning

confidence: 99%

An Analysis of CSR on Firm Financial Performance in Stakeholder Perspectives

Hong

Hwang

2017

Sustainability

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Sustainable growth can be a source of success for firms. Corporate social responsibility (CSR) is a key tool for sustainable growth. However, should firms invest in CSR without having confidence in the effects and methods of CSR? This study explored the R&D, technology commercialization, and CSR motivation as core competencies that enhance corporate performance through CSR from a normative perspective-the stakeholder's perspective. The purpose of this study was to investigate both strategic and traditional CSR's relationships with financial performance based on the confidence in the effectiveness of CSR. Another important objective of this study was to explore management factors that influence strategic CSR. Firms consider R&D and technology commercialization as strategic management factors. Therefore, this study analyzed the influence of these strategic management factors along with CSR motivations, which may influence strategic and traditional CSR.

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“…6 The leading hypothesis is that corporate charity is an activity pursued by utility-maximizing managers acting as imperfect agents for shareholders (Boatsman and Gupta, 1996;Helland and Smith, 2006;Bartkus, Morris and Seifert, 2002;Webel and Carter, 2002;Trost, 2004). The main alternative is that corporate giving is driven by profitmaximizing concerns (Navarro, 1988;Fry, Keim, and Meiners, 1982). Both views suggest that corporations will tend to focus much of their overall giving on local charities.…”

Section: Background On Corporate Giving and Local Charitiesmentioning

confidence: 99%

The geography of giving: The effect of corporate headquarters on local charities

Card

Hallock

Moretti

2010

Journal of Public Economics

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We use data on the locations of the head offices of publicly traded U.S. firms to study the impact of corporate headquarters on the receipts of local charitable organizations. Cities like Houston, San Jose, and San Francisco gained significant numbers of corporate headquarters over the past two decades, while cities like Chicago and Los Angeles lost. Our analysis suggests that attracting or retaining the headquarters of an average firm yields approximately $10 million per year in contributions to local non-profits, while the headquarters of a larger firm (one ranked among the top 1000 in total market value) yields about $25 million per year. Likewise, we find that each $1000 increase in the market value of the firms headquartered in a city yields 70 cents or more to local non-profits. Most of the increase in charitable contributions arises from an effect on the number of highly-compensated individuals in a city, rather than through direct donations by the corporations themselves. The Geography of Giving CAHRS WP08-08Cornell University Center for Advanced Human Resource Studies Page 3 of 39 AbstractWe use data on the locations of the head offices of publicly traded U.S. firms to study the impact of corporate headquarters on the receipts of local charitable organizations. Cities like Houston, San Jose, and San Francisco gained significant numbers of corporate headquarters over the past two decades, while cities like Chicago and Los Angeles lost. Our analysis suggests that attracting or retaining the headquarters of an average firm yields approximately $10 million per year in contributions to local non-profits, while the headquarters of a larger firm (one ranked among the top 1000 in total market value) yields about $25 million per year. Likewise, we find that each $1000 increase in the market value of the firms headquartered in a city yields 70 cents or more to local non-profits. Most of the increase in charitable contributions arises from an effect on the number of highly-compensated individuals in a city, rather than through direct donations by the corporations themselves.* We thank John Straub and Abigail Payne for comments on a preliminary draft, and Kevin Stange, Richard Crump, David Walton, and Daniel Hartley for outstanding research assistance. We also thank seminar participants at Cornell, Illinois and Princeton for helpful suggestions.

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Corporate Contributions: Altruistic or For-Profit?

Cited by 210 publications

References 12 publications

Is doing good good for you? how corporate charitable contributions enhance revenue growth

Is doing good good for you? how corporate charitable contributions enhance revenue growth

An Analysis of CSR on Firm Financial Performance in Stakeholder Perspectives

The geography of giving: The effect of corporate headquarters on local charities

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