Why Do Companies Make Philanthropic Donations?

This paper analyses the areas of philanthropic expenditure prioritized by a sample of 164 large UK companies within a model that draws on economics and stakeholder theory. Broadly, our evidence suggests that firms make systematic choices over the alternative destinations of their philanthropic donations in ways that are rationalisable by reference to the particular strategic benefits that are associated with their business environments. Specifically, we identify statistically significant preferences for medical research among hitechnology companies, environmental causes among firms active in environmentally damaging industries, and educational charities among labour intensive companies. This provides significant support for studies that suggest that philanthropy is increasingly viewedstrategically by companies
Keywords Business and Professional Ethics  Conference Proceedings  Social Science
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ISBN(s) 2155-2568
DOI 20051614
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