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Proceedings of the International Association for Business and Society

Volume 10, 1999

Proceedings of the Tenth Annual Meeting

Yaolung James Hsieh
Page 335

Corporate Philanthropy
Why and Why Not?

This paper utilizes in-depth interviews and questionnaire survey to examine the motives of corporate philanthropy and reasons of not making corporate contributions among export-import firms in Taiwan. The results indicate that these Taiwanese firms, when making corporate contributions, emphasize social responsibility motive most, followed by top management’s influences and external solicitation. It appears that enhancing product sales, corporate image, and sales promotion or reducing pressure from competitors are not participant firms’ primary motives when making corporate contributions. With regards to reasons of not making, corporate contributions, the data reveal that lack of human resources is the primary cause that leads participant firms to make no corporate contributions, and followed by insufficient funds. This paper also develops scales for measuring motives of corporate philanthropy and reasons of not making corporate contributions. All of the scales measured have a greater than 0.5, indicating satisfactory reliability for these constructs (Churchill and Peter 1984). Also, factor analysis was performed to determine content validity of these constructs (Churchill 1979). The results (with varimax rotation) revealed approximate match between factors and conceptualized corporate philanthropic motive constructs, and perfect correspondence between factors and conceptualized “reasons of not making corporate contribution" constructs. This indicates high face validity of the measures. Managerial implications are provided as well as limitations of this study and suggestions for future research.

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