Does Giving Lead to Getting? Evidence from Chinese Private Enterprises

Su, Jun; He, Jia

doi:10.1007/s10551-009-0183-0

Cited by 177 publications

(128 citation statements)

References 37 publications

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“…Scholars also find that Chinese companies can build political connection through charity activities, and then get more loans, investing opportunities, etc. (Su & He 2009).…”

Section: External Political Pressurementioning

confidence: 99%

The influence of political connection on corporate social responsibility——evidence from Listed private companies in China

Huang

Zhao

2016

Int J Corporate Soc Responsibility

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In recent years, Chinese private companies have improved a lot in corporate social responsibility (CSR) performance, especially in the philanthropic area. However, private companies' awareness and performance of social responsibility still have a big disparity with SOEs. And private companies' policy of social responsibility is subjective and preferential. To explain this contradiction, this paper tries to introduce political connection and, based on stakeholder salience theory, to test how political connection changes managers' perception of stakeholders' relative importance and cause changes in stakeholders' satisfaction level of social responsibility requirement. The result shows that (1) political connection has positive influence on private companies' CSR; (2) companies with political connection are significantly better than the ones without political connection in society-oriented and customers-oriented responsibility; (3) two kinds of companies have no significant difference in investors-oriented responsibility; (4) as for government-oriented and employee-oriented responsibility, companies with political connection are worse than ones without political connection. These findings are significant for China's future construction of competition system and private companies' choice of stakeholders and future investment.

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“…Scholars also find that Chinese companies can build political connection through charity activities, and then get more loans, investing opportunities, etc. (Su & He 2009).…”

Section: External Political Pressurementioning

confidence: 99%

The influence of political connection on corporate social responsibility——evidence from Listed private companies in China

Huang

Zhao

2016

Int J Corporate Soc Responsibility

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“…Although previous studies have examined the potential instrumental benefits of corporate community initiatives (Fooks et al, 2013;Saiia et al, 2003), very few studies (but see Zhao, 2012) investigate how companies exploit these initiatives to seek legitimacy from the state and other key institutional actors. Some studies, such as the one conducted by Su and He (2010), have shown that firms engage in philanthropy to maximise the firm's benefits, not in the form of an immediate economic return, but rather in order to maximise their 'political return', which is designed to circumvent regulation or seek to be better protected from government intervention or legislation. Under such circumstances, any mismanagement of CSR as part of a firm-level strategy could thus weaken the firms' competitive position relative to their rivals in the country, and undermine their legitimacy, which in turn could result in a long-term disadvantage for the firm (Baron, 2001).…”

Section: Corporate Social Responsibility: Discretionary Strategic Ormentioning

confidence: 99%

“…have been distinctly lacking. While some scholarship (Su and He, 2010;Zhao, 2012) concerned with CSR has answered 'Yes' to this question, other questions about 'How', 'Why' and 'To what extent' multinationals gain legitimacy via their CSR policies and practices remain poorly addressed. In this paper we respond to this gap in the literature and, in the process, contend that when MNEs operate in countries where the state exerts considerable power and control over businesses, such as in Sri Lanka, CSR can prove to be an important legitimisation tool by which MNEs can gain recognition (and support) from the state and other institutional actors (Feng and Wang, 2010).…”

Section: Introductionmentioning

confidence: 99%

Seeking Legitimacy Through CSR: Institutional Pressures and Corporate Responses of Multinationals in Sri Lanka

2015

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Arguably, the corporate social responsibility (CSR) practices of multinational enterprises (MNEs) are influenced by a wide range of both internal and external factors. Perhaps most critical among the exogenous forces operating on MNEs are those exerted by state and other key institutional actors in host countries. Crucially, academic research conducted to date offers little data about how MNEs use their CSR activities to strategically manage their relationship with those actors in order to gain legitimisation advantages in host countries. This paper addresses that gap by exploring interactions between external institutional pressures and firm-level CSR activities, which take the form of community initiatives, to examine how MNEs develop their legitimacy-seeking policies and practices. In focusing on a developing country, Sri Lanka, this paper provides valuable insights into how MNEs instrumentally utilise community initiatives in a country where relationshipbuilding with governmental and other powerful non-governmental actors can be vitally important for the long-term viability of the business. Drawing on neo-institutional theory and CSR literature, this paper examines and contributes to the embryonic but emerging debate about the instrumental and political implications of CSR. The evidence presented and discussed here reveals the extent to which, and the reasons why, MNEs engage in complex legitimacy-seeking relationships with Sri Lankan host institutions.

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“…Extant research typically explains corporate philanthropy as a function of societal expectations (Adams and Hardwick 1998;Brammer and Millington 2004;Crampton and Patten 2008;Galaskiewicz and Burt 1991;Marquis et al 2007) or in terms of reputation and financial management strategies (Brammer and Millington 2005;Lev et al 2010;Saiia et al 2003;Su and He 2010). Most research emphasizes structural institutional factors that explain variance in firms' overall levels of annual giving.…”

Section: Introductionmentioning

confidence: 99%

Corporate Philanthropic Responses to Emergent Human Needs: The Role of Organizational Attention Focus

Muller

Whiteman

2015

J Bus Ethics

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Research on corporate philanthropy typically focuses on organization-external pressures and aggregated donation behavior. Hence, our understanding of the organization-internal structures that determine whether a given organization will respond philanthropically to a specific human need remains underdeveloped. We explicate an attention-based framework in which specific dimensions of organization-level attention focus interact to predict philanthropic responses to an emergent human need. Exploring the response of Fortune Global 500 firms to the 2004 South Asian tsunami, we find that management attention focused on people inside the organization (employees) interacts with both attention for places (countries in the tsunami-stricken region) and attention for practices (corporate philanthropy in general) to predict the likelihood of charitable donations. Our research thus extends beyond the prevailing institutional perspective by highlighting the role of attention focus in corporate responsiveness to emergent societal issues.

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Does Giving Lead to Getting? Evidence from Chinese Private Enterprises

Abstract: donation, philanthropy, private enterprise, political connections, property rights,

Cited by 177 publications

References 37 publications

The influence of political connection on corporate social responsibility——evidence from Listed private companies in China

The influence of political connection on corporate social responsibility——evidence from Listed private companies in China

Seeking Legitimacy Through CSR: Institutional Pressures and Corporate Responses of Multinationals in Sri Lanka

Corporate Philanthropic Responses to Emergent Human Needs: The Role of Organizational Attention Focus

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