Factors Influencing Strategic Corporate Philanthropy: Empirical Evidence from Food and Beverage Businesses in Central Region, Thailand
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Published:
Oct 17, 2019
Keywords:
Altruistic motivation, social movements, government support, board policy, strategic corporate philanthropy
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Abstract
Strategic corporate philanthropy was studied from the perspective of factors affecting such giving. Relationships were investigated between strategic giving and altruistic motivation, social movements, government support, and board policy. Food and beverage businesses in central region, Thailand (N=163) were sampled for this research, and questionnaire data collected was subjected to structural equation modeling analysis. The results showed that altruistic motivation and board policy had a positive influence on strategic corporate philanthropy. Therefore, Chief Executive Officers, managers, corporate social responsibility managers, and practitioners should be aware of the objectives and needs in society. The success of strategic corporate philanthropy might be improved by supporting and allocating useful resources and promoting the concept of giving within the company to ensure acceptance by both internal and external stakeholders.
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Research Articles
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Copyright: Asia-Pacific International University reserve exclusive rights to publish, reproduce and distribute the manuscript and all contents therein.
References
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Boon, J. (2011). The role of governments in CSR. In J. Sagebien & N. Lindsay (Eds.), Governance ecosystems: CSR in the Latin American mining sector (pp. 64–83). London: Palgrave Macmillan.
Bossink, B. (2002). The development of co-innovation strategies: Stages and interaction patterns in interfirm innovation. R and D Management, 32(4), 311–320. doi.org/10.1111/1467-9310.00263
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Campbell, L., Gulas, C., & Gruca, T. (1999). Corporate giving behavior and decision-maker social consciousness. Journal of Business Ethics, 19(4), 375–383. doi.org/10.1023/A:1006080417909
Chapple, W., & Moon, J. (2005). Corporate social responsibility (CSR) in Asia: A seven-country study of CSR web site reporting. Business & Society, 44(4), 415–441.
Daily, C., Dalton, D., & Cannella, A. (2003). Corporate governance: Decades of dialogue and data. Academy of Management Review, 28(3), 371–382. doi.org/10.5465/AMR.2003.10196703
Department of Industrial Works, Thailand (2018). Accessible at http://www.diw.go.th
Diamantopoulos, A., & Siguaw, J. (2000). Introducing LISREL: A guide for the uninitiated. London: SAGE Publications.
Eveland, V., & Crutchfield, T. (2004). Understanding why people give: Help for struggling AIDS-related nonprofits. Journal of Nonprofit & Public Sector Marketing, 12(1), 37–47.
Frickel, S., & Gross, N. (2005). A general theory of scientific/intellectual movements. American Sociological Review, 70(2), 204–232.
Fontaine, M. (2013). Corporate social responsibility and sustainability: the new bottom line? International Journal of Business and Social Science, 4(4), 110–119.
Gan, A. (2006). The impact of public scrutiny on corporate philanthropy. Journal of Business Ethics, 69(3), 217–236. doi: 10.1007/s10551-006-9087-4
Gao, Y., & Hafsi, T. (2015). R & D spending among Chinese SMEs: The role of business owners’ characteristics. Management Decision, 53(8), 1714–1735.
Greenwood, R., Suddaby, R., & Hinings, C. (2002). Theorizing change: The role of professional associations in the transformation of institutionalized fields. The Academy of Management Journal, 45(1), 58–80.
Gu, H., Ryan, C., Bin, L., & Wei, G. (2013). Political connections, guanxi and adoption of CSR policies in the Chinese hotel industry: Is there a link? Tourism Management, 34, 231–235. Retrieved from https://researchcommons.waikato.ac.nz/handle/10289/6754
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Herlin, H., & Pedersen, J. (2013). Corporate foundations: Catalysts of NGO-business partnerships? Journal of Corporate Citizenship, 2013(50), 58–90. doi.org/10.9774/GLEAF.4700.2013.ju.00008
Hogarty, K., Hines, C., Kromrey, J., Ferron, J., & Mumford, K. (2005). The quality of factor solutions in exploratory factor analysis: The influence of sample size, communality, and over determination. Educational and Psychological Measurement, 65(2), 202-226.
Ingley, C. (2008). Company growth and board attitudes to corporate social responsibility. International Journal of Business Governance and Ethics, 4(1), 17–39.
Kramer, M., & Porter, M. (2002). The competitive advantage of corporate philanthropy. Harvard Business Review, 80(12), 56–68. Retrieved from https://hbr.org/2002/12/the-competitive-advantage-of-corporate-philanthropy
Kasikornbank. (2015). Thailand’s Food and Beverage Industry. Retrieved from https://www.kasikornbank.com/ international-business/en/Thailand/IndustryBusiness/Pages/201506_Thailand_FB.aspx
Keys, P., & Fields, M. (2003). The emergence of corporate governance from Wall St. to Main St.: Outside directors, board diversity, earnings management, and managerial incentives to bear risk. The Financial Review, 38(1), 1–24.
Kolk, A., & Pinkse, J. (2010). The integration of corporate governance in corporate social responsibility disclosures. Corporate Social Responsibility and Environmental Management, 17(1), 15–26.
Laoworapong, M., Supattarakul, S., & Swierczek, F. (2015). Corporate governance, board effectiveness, and performance of Thai listed firms. AU Journal of Management, 13(1), 25–40.
Lee, H., Lancendorfer, K., & Reck, R. (2012). Perceptual differences in corporate philanthropy motives: A South Korean study. International Journal of Nonprofit and Voluntary Sector Marketing, 17(1), 33-47.
Li, W., & Zhang, R. (2016). Corporate social responsibility, ownership structure, and political interference: Evidence from China. Journal of Business Ethics, 96(4), 631–645.
Link, A., & Scott, J. (2010). Government as entrepreneur: Evaluating the commercialization success of SBIR projects. Research Policy, 39(5), 589–601. doi.org/10.1016/j.respol.2010.02.006
Madrigal, R., & Boush, D. (2008). Social responsibility as a unique dimension of brand personality and consumers' willingness to reward. Psychology & Marketing, 25(6), 538–564.
Moon, J., & Knudsen, J. (2018). Corporate social responsibility and government. Academy of Management, 2018(1), 140–161. doi.org/10.5465/AMBPP.2018.1277abstract
Olsson, A. (2010). A tourist attraction’s members: Their motivations, relations and roles. Scandinavian Journal of Hospitality and Tourism, 10(4), 411–429. doi.org/10.1080/15022250.2010.520858
Peloza, J., & Shang, J. (2011). How can corporate social responsibility activities create value for stakeholders? A systematic review. Journal of the Academy of Marketing Science, 39(1), 117-135. doi.org/10.1007/ s11747-010-0213-6
Ricks, J. & Williams, J. (2005). Strategic corporate philanthropy: Addressing frontline talent needs through an educational giving program. Journal of Business Ethics, 60(2), 147-157. Available from https://link.springer.com/article/10.1007/s10551-005-1175-3
Rodmanee, S., & Huang, W. (2013). Efficiency evaluation of food and beverage companies in Thailand: An application of relational two-stage data envelopment analysis. International Journal of Social Science and Humanity, 3(3), 202.
Saiia, D., Carroll, A., & Buchholtz, A. (2003). Philanthropy as strategy: When corporate charity “begins at home.” Business & Society, 42(2), 169-201. doi.org/10.1177/0007650303042002002
Schneiberg, M., & Lounsbury, M. (2008). Social movements and institutional analysis. In R. Greenwood, C. Oliver, S. Sahlin-Andersson & R. Suddaby (Eds.), The handbook of organizational institutionalism (pp. 648–670). doi: 10.4135/9781849200387.n28
Schuler, D., Rehbein, K., & Cramer, R. (2002). Pursuing strategic advantage through political means: A multivariate approach. The Academy of Management Journal, 45(4), 659–672.
Shaw, B., & Post, F. (1993). A moral basis for corporate philanthropy. Journal of Business Ethics, 12(10), 745–751. doi.org/10.1007/BF00881305
Shelley, L., & Polonsky, M. (2002). Do charitable causes need to segment their current donor base on demographic factors? An Australian examination. International Journal of Nonprofit and Voluntary Sector Marketing, 7(1), 19–29. doi.org/10.1002/nvsm.164
Sheth, H., & Babiak, K. (2010). Beyond the game: Perceptions and practices of corporate social responsibility in the professional sport industry. Journal of Business Ethics, 91(3), 433–450.
Škare, M., & Golja, T. (2014). The impact of government CSR supporting policies on economic growth. Journal of Policy Modeling, 36(3), 562–577. doi.org/10.1016/j.jpolmod.2014.01.008
Škerlavaj, M., & Dimovski, V. (2009). Organizational learning and performance in two national cultures: A multi-group structural equation modeling approach. In W. R. King (Ed.), Knowledge management and organizational learning (Vol. 4, pp. 321–366). New York, NY: Springer. Available from https://link.springer.com/chapter/10.1007/978-1-4419-0011-1_19
Stern, P., Dietz, T., Abel, T., Guagnano, G., & Kalof, L. (1999). A value-belief-norm theory of support for social movements: The case of environmentalism. Human Ecology Review, 6(2), 81–97. Retrieved from https://humanecologyreview.org/pastissues/her62/62sternetal.pdf
Thompson, B. (2004). Exploratory and confirmatory factor analysis: Understanding concepts and applications. Washington, DC: American Psychological Association.
Turner, R., & Carlson, L. (2003). Indexes of item-objective congruence for multidimensional items. International Journal of Testing, 3(2), 163–171. doi.org/10.1207/S15327574IJT0302_5
Van Dyke, N., Soule, S., & Taylor, V. (2004). The targets of social movements: Beyond a focus on the state. In Daniel J. Myers & Daniel M. Cress (Eds.), Research in social movements, conflicts and change (pp. 25–51. Available from doi.org/10.1016/S0163-786X(04)25002-9
Wang, H., Choi, J., & Li, J. (2008). Too little or too much? Untangling the relationship between corporate philanthropy and firm financial performance. Organization Science, 19(1), 143–159. doi.org/10.1287/ orsc.1070.0271
Wei, J., Ouyang, Z., & Chen, H. (2018). CEO characteristics and corporate philanthropic giving in an emerging market: The case of China. Journal of Business Research, 87, 1–11. Retrieved from http://isiarticles.com/ bundles/Article/pre/pdf/98573.pdf
Werbel, J., & Carter, S. (2002). The CEO’s influence on corporate foundation giving. Journal of Business Ethics, 40(1), 47–60. doi.org/10.1023/A:1019904820344
Williams, R. (2003). Women on corporate boards of directors and their influence on corporate philanthropy. Journal of Business Ethics, 42(1), 1–10.
Williams, B., Onsman, A., & Brown, T. (2010). Exploratory factor analysis: A five-step guide for novices. Australasian Journal of Paramedicine, 8(3), 1–13.
Wulfson, M. (2001). The ethics of corporate social responsibility and philanthropic ventures. Journal of Business Ethics, 29(1–2), 135–145. doi.org/10.1023/A:1006459329221
Zald, M. (2000). Ideologically structured action: An enlarged agenda for social movement research. Mobilization: An International Quarterly, 5(1), 1–16.
Anderson, J., & Gerbing, D. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411–423. Retrieved from http://citeseerx.ist.psu.edu/ viewdoc/download?doi=10.1.1.540.4887&rep=rep1&type=pdf
Arjaliès, D. (2014). Challengers from within economic institutions: A second-class social movement? Journal of Business Ethics, 123(2), 257–262. doi.org/10.1007/s10551-013-1811-2
Ashford, N. (2000). An innovation-based strategy for a sustainable environment. Innovation-Oriented Environmental Regulation, 10(May 1999), 67–107. doi.org/10.1007/978-3-662-12069-9_5
Brammer, S., & Millington, A. (2006). Firm size, organizational visibility and corporate philanthropy: An empirical analysis. Business Ethics: A European Review, 15(1), 6–18. doi.org/10.1111/j.1467-8608.2006.00424.x
Boenigk, S., Leipnitz, S., & Scherhag, C. (2011). Altruistic values, satisfaction and loyalty among first‐time blood donors. International Journal of Nonprofit and Voluntary Sector Marketing, 16(4), 356–370.
Boon, J. (2011). The role of governments in CSR. In J. Sagebien & N. Lindsay (Eds.), Governance ecosystems: CSR in the Latin American mining sector (pp. 64–83). London: Palgrave Macmillan.
Bossink, B. (2002). The development of co-innovation strategies: Stages and interaction patterns in interfirm innovation. R and D Management, 32(4), 311–320. doi.org/10.1111/1467-9310.00263
Burlingame, D., & Young, D. (Eds.). (1996). Corporate philanthropy at the crossroads. Bloomington, IN: Indiana University Press.
Campbell, L., Gulas, C., & Gruca, T. (1999). Corporate giving behavior and decision-maker social consciousness. Journal of Business Ethics, 19(4), 375–383. doi.org/10.1023/A:1006080417909
Chapple, W., & Moon, J. (2005). Corporate social responsibility (CSR) in Asia: A seven-country study of CSR web site reporting. Business & Society, 44(4), 415–441.
Daily, C., Dalton, D., & Cannella, A. (2003). Corporate governance: Decades of dialogue and data. Academy of Management Review, 28(3), 371–382. doi.org/10.5465/AMR.2003.10196703
Department of Industrial Works, Thailand (2018). Accessible at http://www.diw.go.th
Diamantopoulos, A., & Siguaw, J. (2000). Introducing LISREL: A guide for the uninitiated. London: SAGE Publications.
Eveland, V., & Crutchfield, T. (2004). Understanding why people give: Help for struggling AIDS-related nonprofits. Journal of Nonprofit & Public Sector Marketing, 12(1), 37–47.
Frickel, S., & Gross, N. (2005). A general theory of scientific/intellectual movements. American Sociological Review, 70(2), 204–232.
Fontaine, M. (2013). Corporate social responsibility and sustainability: the new bottom line? International Journal of Business and Social Science, 4(4), 110–119.
Gan, A. (2006). The impact of public scrutiny on corporate philanthropy. Journal of Business Ethics, 69(3), 217–236. doi: 10.1007/s10551-006-9087-4
Gao, Y., & Hafsi, T. (2015). R & D spending among Chinese SMEs: The role of business owners’ characteristics. Management Decision, 53(8), 1714–1735.
Greenwood, R., Suddaby, R., & Hinings, C. (2002). Theorizing change: The role of professional associations in the transformation of institutionalized fields. The Academy of Management Journal, 45(1), 58–80.
Gu, H., Ryan, C., Bin, L., & Wei, G. (2013). Political connections, guanxi and adoption of CSR policies in the Chinese hotel industry: Is there a link? Tourism Management, 34, 231–235. Retrieved from https://researchcommons.waikato.ac.nz/handle/10289/6754
Haniffa, R., & Cooke, T. (2005). The impact of culture and governance on corporate social reporting. Journal of Accounting and Public Policy, 24(5), 391-430.
Hair, J., Black, W., Babin, B., & Anderson, R. (2010). Multivariate data analysis: A global perspective (7th ed.). New Jersey: Pearson Prentice Hall.
Henderson, J. (2007). Corporate social responsibility and tourism: Hotel companies in Phuket, Thailand, after the Indian Ocean tsunami. International Journal of Hospitality Management, 26(1), 228–239.
Herlin, H., & Pedersen, J. (2013). Corporate foundations: Catalysts of NGO-business partnerships? Journal of Corporate Citizenship, 2013(50), 58–90. doi.org/10.9774/GLEAF.4700.2013.ju.00008
Hogarty, K., Hines, C., Kromrey, J., Ferron, J., & Mumford, K. (2005). The quality of factor solutions in exploratory factor analysis: The influence of sample size, communality, and over determination. Educational and Psychological Measurement, 65(2), 202-226.
Ingley, C. (2008). Company growth and board attitudes to corporate social responsibility. International Journal of Business Governance and Ethics, 4(1), 17–39.
Kramer, M., & Porter, M. (2002). The competitive advantage of corporate philanthropy. Harvard Business Review, 80(12), 56–68. Retrieved from https://hbr.org/2002/12/the-competitive-advantage-of-corporate-philanthropy
Kasikornbank. (2015). Thailand’s Food and Beverage Industry. Retrieved from https://www.kasikornbank.com/ international-business/en/Thailand/IndustryBusiness/Pages/201506_Thailand_FB.aspx
Keys, P., & Fields, M. (2003). The emergence of corporate governance from Wall St. to Main St.: Outside directors, board diversity, earnings management, and managerial incentives to bear risk. The Financial Review, 38(1), 1–24.
Kolk, A., & Pinkse, J. (2010). The integration of corporate governance in corporate social responsibility disclosures. Corporate Social Responsibility and Environmental Management, 17(1), 15–26.
Laoworapong, M., Supattarakul, S., & Swierczek, F. (2015). Corporate governance, board effectiveness, and performance of Thai listed firms. AU Journal of Management, 13(1), 25–40.
Lee, H., Lancendorfer, K., & Reck, R. (2012). Perceptual differences in corporate philanthropy motives: A South Korean study. International Journal of Nonprofit and Voluntary Sector Marketing, 17(1), 33-47.
Li, W., & Zhang, R. (2016). Corporate social responsibility, ownership structure, and political interference: Evidence from China. Journal of Business Ethics, 96(4), 631–645.
Link, A., & Scott, J. (2010). Government as entrepreneur: Evaluating the commercialization success of SBIR projects. Research Policy, 39(5), 589–601. doi.org/10.1016/j.respol.2010.02.006
Madrigal, R., & Boush, D. (2008). Social responsibility as a unique dimension of brand personality and consumers' willingness to reward. Psychology & Marketing, 25(6), 538–564.
Moon, J., & Knudsen, J. (2018). Corporate social responsibility and government. Academy of Management, 2018(1), 140–161. doi.org/10.5465/AMBPP.2018.1277abstract
Olsson, A. (2010). A tourist attraction’s members: Their motivations, relations and roles. Scandinavian Journal of Hospitality and Tourism, 10(4), 411–429. doi.org/10.1080/15022250.2010.520858
Peloza, J., & Shang, J. (2011). How can corporate social responsibility activities create value for stakeholders? A systematic review. Journal of the Academy of Marketing Science, 39(1), 117-135. doi.org/10.1007/ s11747-010-0213-6
Ricks, J. & Williams, J. (2005). Strategic corporate philanthropy: Addressing frontline talent needs through an educational giving program. Journal of Business Ethics, 60(2), 147-157. Available from https://link.springer.com/article/10.1007/s10551-005-1175-3
Rodmanee, S., & Huang, W. (2013). Efficiency evaluation of food and beverage companies in Thailand: An application of relational two-stage data envelopment analysis. International Journal of Social Science and Humanity, 3(3), 202.
Saiia, D., Carroll, A., & Buchholtz, A. (2003). Philanthropy as strategy: When corporate charity “begins at home.” Business & Society, 42(2), 169-201. doi.org/10.1177/0007650303042002002
Schneiberg, M., & Lounsbury, M. (2008). Social movements and institutional analysis. In R. Greenwood, C. Oliver, S. Sahlin-Andersson & R. Suddaby (Eds.), The handbook of organizational institutionalism (pp. 648–670). doi: 10.4135/9781849200387.n28
Schuler, D., Rehbein, K., & Cramer, R. (2002). Pursuing strategic advantage through political means: A multivariate approach. The Academy of Management Journal, 45(4), 659–672.
Shaw, B., & Post, F. (1993). A moral basis for corporate philanthropy. Journal of Business Ethics, 12(10), 745–751. doi.org/10.1007/BF00881305
Shelley, L., & Polonsky, M. (2002). Do charitable causes need to segment their current donor base on demographic factors? An Australian examination. International Journal of Nonprofit and Voluntary Sector Marketing, 7(1), 19–29. doi.org/10.1002/nvsm.164
Sheth, H., & Babiak, K. (2010). Beyond the game: Perceptions and practices of corporate social responsibility in the professional sport industry. Journal of Business Ethics, 91(3), 433–450.
Škare, M., & Golja, T. (2014). The impact of government CSR supporting policies on economic growth. Journal of Policy Modeling, 36(3), 562–577. doi.org/10.1016/j.jpolmod.2014.01.008
Škerlavaj, M., & Dimovski, V. (2009). Organizational learning and performance in two national cultures: A multi-group structural equation modeling approach. In W. R. King (Ed.), Knowledge management and organizational learning (Vol. 4, pp. 321–366). New York, NY: Springer. Available from https://link.springer.com/chapter/10.1007/978-1-4419-0011-1_19
Stern, P., Dietz, T., Abel, T., Guagnano, G., & Kalof, L. (1999). A value-belief-norm theory of support for social movements: The case of environmentalism. Human Ecology Review, 6(2), 81–97. Retrieved from https://humanecologyreview.org/pastissues/her62/62sternetal.pdf
Thompson, B. (2004). Exploratory and confirmatory factor analysis: Understanding concepts and applications. Washington, DC: American Psychological Association.
Turner, R., & Carlson, L. (2003). Indexes of item-objective congruence for multidimensional items. International Journal of Testing, 3(2), 163–171. doi.org/10.1207/S15327574IJT0302_5
Van Dyke, N., Soule, S., & Taylor, V. (2004). The targets of social movements: Beyond a focus on the state. In Daniel J. Myers & Daniel M. Cress (Eds.), Research in social movements, conflicts and change (pp. 25–51. Available from doi.org/10.1016/S0163-786X(04)25002-9
Wang, H., Choi, J., & Li, J. (2008). Too little or too much? Untangling the relationship between corporate philanthropy and firm financial performance. Organization Science, 19(1), 143–159. doi.org/10.1287/ orsc.1070.0271
Wei, J., Ouyang, Z., & Chen, H. (2018). CEO characteristics and corporate philanthropic giving in an emerging market: The case of China. Journal of Business Research, 87, 1–11. Retrieved from http://isiarticles.com/ bundles/Article/pre/pdf/98573.pdf
Werbel, J., & Carter, S. (2002). The CEO’s influence on corporate foundation giving. Journal of Business Ethics, 40(1), 47–60. doi.org/10.1023/A:1019904820344
Williams, R. (2003). Women on corporate boards of directors and their influence on corporate philanthropy. Journal of Business Ethics, 42(1), 1–10.
Williams, B., Onsman, A., & Brown, T. (2010). Exploratory factor analysis: A five-step guide for novices. Australasian Journal of Paramedicine, 8(3), 1–13.
Wulfson, M. (2001). The ethics of corporate social responsibility and philanthropic ventures. Journal of Business Ethics, 29(1–2), 135–145. doi.org/10.1023/A:1006459329221
Zald, M. (2000). Ideologically structured action: An enlarged agenda for social movement research. Mobilization: An International Quarterly, 5(1), 1–16.