Literature Review

623 words - 3 pages

There are various reasons behind corporate giving in society. First, based on Camphell, Gulas and Gruca (1999), the reasons for corporate philanthropy is separated into two general categoties. Corporate giving, being considered as a kind of input, is a sufficient market strategy adapted by many firms for increasing profit to obtain potential benefits and rewards and achieve “do better by doing good”. And then, the second kind is mainly from “the social responsiveness of the firm” defined as corporate benevolence based on the managers’ attitude towards the charity. Namely, the motivation of corporate giving is the firm’s sense of social responsibility and altruism, manager’s felling or ...view middle of the document...

Another research supporting from Bruce, Morris and Bartkus (2004), they investigated the financial relationship of philanthropy in Fortune 1000 companies through structural equation modeling. They found that cash flow have an important influence on charitable causes of a firm’s cash donation, which monetary programs of corporate giving do not impact on the financial performance of a firm. As a result, they support that corporate philanthropy is a discretionary social responsibility and it supports “company giving in the business and society literature that doing well enables doing good”, which is against some contemporary views.
Bibliography

Campbell, L., Gulas, C.S. and Gruca, T.S., 1999, Corporate Giving Behavior and Decision-maker Social Consciousness, Journal of Business Ethics 19:383.
Available at: http://www.springlink.com/content [accessed 24.1.13]

Tonello,M., 2011, Making the Business Case for Corporate Philanthropy.
Available at:...

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