Title

Relationship Between Corporate Foundation Giving and the Economic Cycle for Consumer- and Industrial-Oriented Firms

Abstract

Panel data from 179 corporate foundations over a 9-year period were analyzed to examine how charitable giving was influenced by a recent economic slowdown. The results revealed that foundations sponsored by consumer-oriented firms reduced their support for charitable causes as economic conditions worsened. Foundations sponsored by industrial-oriented firms increased charitable contributions during the economic slowdown. The results were interpreted as being consistent with the proposed motivation for corporate giving. More specifically, it was assumed that charitable giving decisions by foundations sponsored by consumer-oriented firms are consistent with a marketing-related objective to increase sales through corporate philanthropy. Foundations sponsored by industrial-oriented firms were assumed to make charitable giving decisions more from an altruistic perspective. To achieve maximum corporate benefits from charitable donations, it was recommended that corporate foundations develop a giving program that avoids the potential negative consequences associated with reducing foundation giving when the need for charitable contribution increases

Department(s)

Management and Information Technology

Document Type

Article

DOI

https://doi.org/10.1177/0007650315608148

Keywords

foundation giving, consumer- and industry-oriented firms, motivation for giving, economic cycles

Publication Date

7-7-1905

Journal Title

Business & Society 56

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