The Impact of Public Scrutiny on Corporate Philanthropy

Journal of Business Ethics 69 (3):217-236 (2006)

Abstract
This paper proposes that a corporation’s vulnerability to public scrutiny drives its corporate giving. The hypothesis that companies donate for strategic motives is tested against the alternative that they do so for altruistic reasons. Court cases and news articles were selected as proxies for public scrutiny. Macroeconomic variables were used to gauge the level of public charitable need and test for altruism. Through examining the philanthropic behavior of 40 Fortune 500 companies over 7 years, this paper finds that companies are strategic and altruistic in their giving.
Keywords altruism  corporate giving  corporate philanthropy  strategic philanthropy
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DOI 10.1007/s10551-006-9087-4
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Philanthropy as Strategy.A. Buchholtz, A. Carroll & D. Saiia - 2003 - Business and Society 42 (2):169-201.

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