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Corporate donation refers to the act of an enterprise voluntarily giving away people, property, and goods to a recipient who has no direct interest relationship with the enterprise for charitable causes.

Corporate donation

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Corporate donation refers to the act of an enterprise voluntarily giving away people, property, and goods to a recipient who has no direct interest relationship with the enterprise for charitable causes.

Chinese name

Corporate donation

Donation conditions

No direct interest relationship with the enterprise

Nature

Charity

Economic motivation

External compensation motive

(1) Motivation for external compensation ^[1]

Social capital can improve the level of social integrity, and its approach is based on the internal constraints of social morality on people's untrustworthy behavior and the external punishment of social public opinion on people's untrustworthy behavior. In the context of internal and external constraints, companies will pay more attention to and maintain social reputation, and bad behavior that damages reputation will be severely punished. Trust is built on reputation, and donations can effectively enhance corporate reputation. The level of social capital affects the public's evaluation of corporate donation motivation, and the evaluation of motivation will affect the level of moral capital generated by donations. Therefore, in regions with higher social capital, companies have more investment in reputation, and the overall reputation of the company is higher. The public trusts the company more, and the company is more likely to participate in donations. ^[2]

Resource dependence theory holds that some key resources related to the survival and development of enterprises are controlled by stakeholders to varying degrees, which makes enterprises face uncertainty in the process of allocating these resources. Corporate donations can attract customers, employees, communities, and other stakeholders, and help consolidate corporate resources or reduce resource constraints. Based on the trust of community culture and industrial rules, manufacturers are encouraged to develop relationships with stakeholders. As the level of trust in community culture and industry rules rises, manufacturers considering profit maximization should develop more relationships with stakeholders, which will provide manufacturers with resources and establish more efficient and flexible relationships to save costs Improve quality, deal with change more effectively, and reduce opportunism. It can be seen that the greater the level of trust in the region where manufacturers are located, the more valuable the stakeholder-controlled resources are, and the more necessary it is for companies to maintain and strengthen relationships with stakeholders, and corporate donations can improve relationships with stakeholders. In this way, the higher the level of trust in the region where the company is located, the more likely it is that the company will donate, and the more it will be donated.