The Co-evolution of Corporate Philanthropy and Stakeholder Responses in China

Publication Type

Conference Proceeding Article

Publication Date

8-2015

Abstract

The study examines the effect of sudden natural disasters on the co-evolution of corporate philanthropy and stakeholders¡¦ responses to it. We argue that sudden events facilitate the institutionalization process of corporate philanthropy, which lead to an overall increase in corporate philanthropic behaviors. Meanwhile, as corporate philanthropy becomes more legitimate, stakeholders gradually shift attention away from the philanthropic act itself to more individualized, firm-specific features related to philanthropy. As a result, stakeholders¡¦ responses to corporate philanthropic activities become less positive in general, resulting in a weaker relationship between corporate philanthropy and firm value. But for firms that could demonstrate genuineness in their philanthropic donations, stakeholder responses remain positive. Using the Wenchuan earthquake which occurred in 2008 in China as a sudden event and analyzing data from 2,318 Chinese listed firms between year 2004 and 2012, we find support for these arguments. These findings have implications for strategy and policy.

Keywords

Co-evolution, Corporate Philanthropy, Stakeholder Responses

Discipline

Asian Studies | Business Law, Public Responsibility, and Ethics

Research Areas

Strategy and Organisation

Publication

Academy of Management Proceedings: 75th Annual Meeting 2015, August 7-11, Vancouver, BC

Identifier

10.5465/AMBPP.2015.15706abstract

Publisher

Academy of Management

City or Country

Briarcliff Manor, NY

Additional URL

https://doi.org/10.5465/AMBPP.2015.15706abstract

This document is currently not available here.

Share

COinS