The Effects of Listed Company Charitable Foundation on Business Relationship of Supply Chain: Based on the Empirical Research of Corporate Social Responsibility
Keywords:Listed company foundations; Supply chain business relationships; CSR
The Public Welfare Foundation of a listed company is a non-profit organization with independent legal personality. It is established and funded by a listed company. The purpose of establishing a foundation for a listed company is generally to carry out charitable activities and make important contributions to charitable causes. However, due to the special power separation model, the autonomy of the foundation is poor, and there may be serious agency conflicts, ultimately leading to listed companies becoming beneficiaries of the foundation's charitable activities. We have found from the perspectives of commercial credit, sales, and cooperative relationships that social responsibility initiating organizations (listed companies) can obtain potential benefits from social responsibility fulfilling organizations (listed company public welfare foundations) in supply chain commercial relationships, that is, listed companies that establish public welfare foundations have good supply chain commercial relationships. When a listed company and a public welfare foundation have a close relationship in terms of fund donation, decision-making, business, and naming, the public welfare foundation has a strategic preference in selecting project names, project service areas, project beneficiaries, and project service areas. It prioritizes the interests of the listed company, enabling the listed company to obtain better supply chain business relationships.
Ali, H. Y., Danish, R. Q., & Muhammad, A. (2019). How corporate social responsibility boosts firm financial performance: the mediating role of corporate image and customer satisfaction. Corporate Social Responsibility and Environmental Management, 27(1), 166-177. https://doi.org/10.1002/csr.1781
Arco-Castro, L., López-Pérez, M. V., & Pérez-López M. C., & Rodríguez-Ariza, L. (2020) How market value relates to corporate philanthropy and its assurance. moderating effect of the business sector[J]. Business Ethics: A European Review, 29(2):266-281. https://doi.org/10.1111/beer.12264
Bedoya, A. M. D., & García, N. V. (2016). Corporate social responsibility and corporate foundations in building responsible brands. Profesional de la Informacion, 25(5), 767-777. https://doi.org/10.3145/epi.2016.sep.07
Bronn, P. S., & Vidaver-Cohen, D. (2009). Corporate motives for social initiative: legitimacy, sustainability, or the bottom line?. Journal of Business Ethics, 87(1), 91-109. https://doi.org/10.1007/s10551-008-9795-z
Chen, G., & Li, W. A. (2016). Corporate foundations and their governance: research development and future prospects. Foreign Economics & Management, 38(06): 21-37. https://doi.org/10.16538/j.cnki.fem.2016.06.002
Chen, L. H., & Zhang, L. P. (2014) Characteristics of Charitable Foundations, Auditor Selection, and Decision-making of Donators [J]. Auditing Research, 5, 68-76. Cheng, X. W., Ji, G., & Fan, Q. Y. (2018) Does Financial Disclosure Affect Donation Income? Evidence Based on the Chinese Public Welfare Foundation [J]. Finance and Trade Research, 29(4): 102-110. https://doi.org/10.19337/j.cnki.34-1093/f.2018.04.010
Cornell, B., & Shapiro, A. (1987) Corporate stakeholders and corporate finance[J]. Financial Management, 16(1): 5-14. https://doi.org/10.2307/3665543
Duquette, N., & Ohrn, E. (2018) Corporate charitable foundations, executive entrenchment, and shareholder distributions[J]. Journal of Economic Behavior & Organization, 152, 235-253. https://doi.org/10.1016/j.jebo.2018.04.006
Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. Journal of Law and Economics, 26(2), 301-325. http://dx.doi.org/10.1086/467037
Fan, Y. (2015) Ethical branding and corporate reputation[J]. Corporate Communications: An International Journal, 10(4): 341-350. https://doi.org/10.1108/13563280510630133
Fang, H. X., & Chu, Y. W. (2019) Corporate strategy and trade credit financing[J]. Nankai Business Review, 22(5): 142-154. https://doi.org/10.3969/j.issn.1008-3448.2019.05.013
Fombrun, C., & Shanley, M. (1990). What's in a name? reputation building and corporate strategy. Academy of Management Journal, 33(2), 233-258. https://doi.org/10.2307/256324
Frooman, J. (1999) Stakeholder influence strategies[J]. Academy of Management Review, 24(2): 191-205. https://doi.org/10.2307/259074
Herlin, H., & Pedersen, J. T. (2013) Corporate foundations: Catalysts of NGO-business partnerships? [J]. Journal of Corporate Citizenship, 50, 58-90. http://www.jstor.org/stable/jcorpciti.50.58.
Hornstein, A. S., & Zhao, M. Y. (2018) Reaching through the fog: Institutional environment and cross-border giving of corporate foundations[J]. Strategic Management Journal, 39(10): 2666-2690. https://doi.org/10.1002/smj.2939
Jones, T. M. (1995) Instrumental stakeholder theory: a synthesis of ethics and economics[J]. Academy of Management Review, 20(2): 404-437. https://doi.org/10.5465/amr.1995.9507312924
Kietlińska, K., & Mikoajczyk, B. (2014) Corporate foundations in Poland and their role in the management of the company[J]. Procedia-Social and Behavioral Sciences, 150: 993-1001. https://doi.org/10.1016/j.sbspro.2014.09.111
Kitchin T. (2013) Corporate social responsibility: A brand explanation [J]. Journal of Brand Management, 10(4): 312-326. https://doi.org/10.1057/palgrave.bm.2540127
Lev, B., Petrovits, C., & Radhakrishnan, S. (2010) Is doing good for you? how corporate charitable contributions enhance revenue growth[J]. Strategic Management Journal, 31(2): 182-200. https://doi.org/10.1002/smj.810
Li, X. T., & Yi H. H. (2015) On agency lssues in charity and their governance——in the perspective of corporate foundation [J]. Journal of Zhejiang Gongshang University, 4, 46-54. https://doi.org/10.3969/j.issn.1009-1505.2015.04.006
Li, Y., & Tu, X. F. (2020) Research on the maturity path of community foundations——qualitative comparative analysis on 44 community foundations [J]. Chinese Public Administration, 9, 97-105.
Liu, X., Li, H., Sun, Y., & Wang, C. A. (2022). High-speed railway and urban productivity disparities. Growth and Change, 53(2), 680-701. https://doi.org/10.1111/grow.12602
Menon, S., & Kahn, B. E. (2003) Corporate sponsorships of philanthropic activities: when do they impact perception of sponsor brand? [J]. Journal of Consumer Psychology, 13(3): 316-327.
Minciullo, M., & Pedrini, M. (2015) Knowledge transfer between for-profit corporations and their corporate foundations: which methods are effective? [J]. Nonprofit Management & Leadership, 25(3): 215-234.
Mindlin, S. E. (2012) A study of governance practices in corporate foundations[J]. Revista de Administração, 47(3): 461-472. https://doi.org/10.5700/rausp1051
Monfort, A., Villagra, N., & Sánchez, J. (2021) Economic impact of corporate foundations: an event analysis approach[J]. Journal of Business Research, 122:159-170. https://doi.org/10.1016/j.jbusres.2020.08.046
Morsing, M., & Schultz, M. (2006) Corporate social responsibility communication: Stakeholder information, response and involvement strategies[J]. Business Ethics: A European Review, 15(4): 323-338.
https://doi.org/10.1111/j.1467-8608.2006.00460 Ostrower, F. (2006). Foundation approaches to effectiveness: a typology. Nonprofit & Voluntary Sector Quarterly, 35(3), 510-516. https://doi.org/10.1177/0899764006290789
Pan, H. B, & Zhang, Z. (2020) Executive-customer relationships and corporate customer stability[J]. Chinese Journal of Management, 17(2): 196-203. https://doi.org/10.3969/j.issn.1672-884x.2020.02.005
Parket, I. R., & Eilbirt, H. (1975) Social responsibility: the underlying factors[J]. Business Horizons, 18(4): 5-10.
Pedrini, M., & Minciullo, M. (2011) Italian corporate foundations and the challenge of multiple stakeholder interests[J]. Nonprofit Management & Leadership, 22(2): 173-197. https://doi.org/10.1002/nml.20048
Petrovits, C. M. (2006) Corporate-sponsored foundations and earnings management[J]. Journal of Accounting and Economics, 41(3): 335-362. https://doi.org/10.1016/j.jacceco.2005.12.001
Porter, M. E., & Kramer, M. R. (2002) The competitive advantage of corporate philanthropy[J]. Harvard Business Review, 80(12): 56-68, 133.
Rey-Garcia, M., Martin-Cavanna, J., & Alvarez-Gonzalez, L. (2012) Assessing and advancing foundation transparency: corporate foundations as a case study[J]. Foundation Review, 4(3): 77-89.
Rowley, T., Behrens, D., & Krackhardt, D. (2000). Redundant governance structures: an analysis of structural and relational embeddedness in the steel and semiconductor industries. Strategic Management Journal, 21(3): 369-386. https://doi.org/10.1002/(SICI)1097-0266(200003)21:3<369::AID-SMJ93>3.0.CO;2-M
Shen, Y. D., & Yu, Z. H. (2019) Government funding affects non-governmental fundraising income of social organizations - an empirical study based on 3016 foundations in China[J]. Comparative Economic and Social Systems, 4, 128-137. https://doi.org/10.1080/15309576.2019.1652660
Tang, S., & Wang, J. J., Ma, Y., Sun, Z. (2017) Collaterals, social networks, and trade credits [J]. Nankai Business Review, 20(03): 53-64.Teng, F., Xia, X., & Xin, Yu. (2020) Customer Relationship and operating performance following private placements[J]. Nankai Business Review, 23(3): 212-224.Wang, C. A., Liu, X., Li, H., & Yang, C. (2023). Analyzing the impact of low-carbon city pilot policy on enterprises' labor demand: Evidence from China. Energy Economics, 124. https://doi.org/10.1016/j.eneco.2023.106676
Wang, C. A., Wu, J., & Liu, X. (2022). High-speed rail and urban innovation: based on the perspective of labor mobility. Journal of the Asia Pacific Economy, 1-26. https://doi.org/10.1080/13547860.2022.2058257
Wang, C. A., Wu, J., Ruan, J., & Liu, X. (2022). Language differences, cultural identity, and innovation. Growth and Change, 53(4), 1716-1736. https://doi.org/10.1111/grow.12631
Wang, W., & Korschun, D. (2014) Spillover of social responsibility associations in a brand portfolio[J]. Journal of Product & Brand Management, 24(6): 596-609. https://doi.org/10.1108/JPBM-06-2014-0629
Westhues, M., & Einwiller, S. (2006) Corporate foundations: their role for corporate social responsibility[J]. Corporate Reputation Review, 9(20): 144-153. https://doi.org/10.1057/palgrave.crr.1550019
Wulfson, M. (2001) The ethics of corporate social responsibility and philanthropic ventures[J]. Journal of Business Ethics, 29(1/2): 135-145. https://www.jstor.org/stable/25074447
Xie, S., Reman, M. A. ur, & Mao, K. (2022). Effects of Education Equalization Measures on Housing Prices: Evidence from a Natural Experiment in Suzhou, China. Review of Economic Assessment, 1(1), 22–33.
Xie, X. X. (2014) The impact of financial information disclosure of charity organizations on donations: based on the analysis of Chinese charitable foundations [J]. Finance and Trade Research, 25(2): 150-156.
Yan, K. G., & Yuan, Y. (2017) Can the diversity of foundation directors' professional backgrounds improve organizational performance? [J]. Commercial Research, 3, 14-21.
Yang, T. (2010) A preliminary analysis of foundation research[J]. Social Sciences in Hunan, 1, 53-59.
Zhang, L. M., Cao, L. M., & Li, H. (2012) Can audit mechanism play an effective role in charity? [J]. Nankai Business Review, 15(2): 92-100.Zhang, N., Lin, Z. G., & Wang, M. (2002) The new model of private entrepreneurs' strategic charity: an analysis of the development characteristics and influencing factors of private enterprises (entrepreneurs) foundations [J]. Hubei Social Science, 6, 49-59. https://doi.org/10.13660/j.cnki.42-1112/c.015391
Zhang, S. Q., & Zhu, X. Y. (2019) Does seeking profits behavior damage performance of public-benefit projects of civil non-profit organizations? [J]. East China Economic Management, 33(01): 42-50.
Zhang, X. F., Zhang, X. L., & Xu, L. B. (2023) Research on Macroprudential Instruments and Systemic Financial Risk [J]. International Finance Research, 430 (02): 38-47.https://doi.org/10.16475/j.cnki.1006-1029.2023.02.003
Zhang, X., He, P., Liu, X., & Lu, T. (2023). The effect of low-carbon transportation pilot policy on carbon performance: evidence from China. Environmental Science and Pollution Research, 1-29.
Zhang, Z. Y., Deng, B. F. (2018) Corporate social responsibility, monetary policy and trade credit financing [J]. Science Research Management, 39(5): 94-102. https://doi.org/10.19571/j.cnki.1000-2995.2018.05.011
Zhao, Q., Luo, Q., Wang, L., & Chen, W. (2023). Are Inventors Better CEOs? Evidence from China. Review of Economic Assessment, 2(1), 1–24. https://doi.org/10.58567/rea02010001
Zor, S., Chen, J., Ailimujiang, J., & Wang, F. (2023). Follow Suit: Imitative governance, resource inclination, and regional innovation efficiency. Review of Economic Assessment, 2(1), 25–39.
How to Cite
Copyright (c) 2023 Xindan Chang, Mengke Li, Ning Xiao
This work is licensed under a Creative Commons Attribution 4.0 International License.