Where to donate: The geographical distribution of corporate philanthropy in China

An emerging body of literature has demonstrated that corporate philanthropy can be an important part of a company’s business strategy.However,we know relatively little about how companies allocate philanthropic resources to achieve their strategic targets.Using geographical distribution data on corporate philanthropy in China from 2009 to 2016,we provide robust evidence of companies’revenue-driven regional favoritism.Specifically,companies donate more to regions where they obtain revenue than to other regions.Further evidence suggests that this revenue-driven regional favoritism may have both reputational and political motivations.Further analysis suggests that China’s targeted poverty alleviation policy has compromised revenue-driven regional favoritism while increasing the amount of money donated to poor regions.Overall,we enrich understanding of decision-making on corporate philanthropy.We also demonstrate that companies can use the geographical distribution of corporate philanthropy strategically to obtain consumer and government favor in regions where they operate.The results also provide evidence at the micro company level of the effect of China’s implementation of a targeted poverty alleviation policy.

Contextual Relevance of Sustainable Supply Chain:Recycling,Philanthropy,or Both?

Many firms have already been actively or passively involved in sustainable supply chain management with the objective of improving the triple bottom line(TBL).But whether the limited funds should be allocated to both community responsibility activities(e.g.,corporate philanthropy)and environmental protection activities(e.g.,recycling)is a confusing question.This paper provides deep insights into the combination strategy of two corporate social responsibility(CSR)types in a two-tier sustainable supply chain by modeling analysis.The decision models in eight scenarios with different combinations of CSR types are proposed and applied for the determination of equilibrium scenarios.The paper’s findings highlight:under certain conditions,(1)the supply chain with two types of CSR is the equilibrium scenario and improves the TBL;(2)counter-intuitively,balancing short-and long-term benefits,firms are more willing to cooperate with partners with relatively low consumers sensitivity of CSR activities;(3)it is wise for the manufacturer to allocate more funding to environmental responsibility than to community responsibility.In addition,considering both short-and long-term benefits,comparing with the manufacturer,the retailer has a stronger incentive to improve recycling efficiency.