Publication Type

Journal Article

Version

acceptedVersion

Publication Date

5-2021

Abstract

We propose a new mechanism explaining why companies may remain silent about their positive corporate behaviors, such as socially responsible activities. We examine such strategic silence in the context of corporate philanthropy. Building on and extending the literature on legitimacy and stakeholder management, we argue that when a firm mistreats primary stakeholders, it is more likely to keep quiet about its philanthropic acts to avoid backlash from stakeholders. We also propose that long-term orientation among stakeholders mitigates the positive relationship between mistreating primary stakeholders and quiet giving, which allows stakeholders to appreciate the long-term value of corporate philanthropy. Data from listed Chinese firms show that firms are more likely to give quietly when they underpay their employees and/or investors. Moreover, research and development expenditures and institutional shareholding, as indicators of stakeholder long-term orientation, attenuate this relationship.

Keywords

corporate philanthropy, legitimacy, quiet giving, stakeholder perception, stakeholder management

Discipline

Asian Studies | Business Law, Public Responsibility, and Ethics | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Organization Science

Volume

32

Issue

3

First Page

649

Last Page

674

ISSN

1047-7039

Identifier

10.1287/orsc.2020.1385

Publisher

INFORMS (Institute for Operations Research and Management Sciences)

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1287/orsc.2020.1385

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