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The Strength of Two Hands: Conflicting Stakeholder Pressures and Corporate Philanthropic Giving

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  • Zhang, Liang
  • Zhang, Zhe
  • Jia, Ming
  • Ren, Yeyao

Abstract

We develop a stakeholder framework that examines how firms respond to the conflicting demands that arise from governments and investors in the context of corporate philanthropic giving. We argue that firms that experience such conflict exhibit a decoupling response in philanthropic giving. Furthermore, we identify the boundary conditions of the relationship between the conflicting pressures and the decoupling response. Drawing on stakeholder salience literature, we argue that this relationship will be weakened when CEOs perceive government demands as more salient (such as those with a communist ideology) and when CEOs are less sensitive to investor claims (such as those with fewer career concerns). We find empirical support for our arguments using a sample of 8,857 Chinese listed firms from 2006 to 2015. Our study contributes to the literature on stakeholder theory, decoupling, and corporate philanthropy.

Suggested Citation

  • Zhang, Liang & Zhang, Zhe & Jia, Ming & Ren, Yeyao, 2020. "The Strength of Two Hands: Conflicting Stakeholder Pressures and Corporate Philanthropic Giving," Management and Organization Review, Cambridge University Press, vol. 16(2), pages 335-375, May.
  • Handle: RePEc:cup:maorev:v:16:y:2020:i:2:p:335-375_7
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    Cited by:

    1. Shan Xue & Yuehua Xu & Honghui Chen, 2024. "Corporate social performance feedback and corporate social responsibility decoupling in China: The salience of legitimacy and/or efficiency," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3164-3180, July.
    2. Jyun‐Ying Fu, 2023. "Customer concentration and corporate charitable donations: Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 545-561, January.
    3. Syed Tauseef Ali & Joseph H. Zhang & Farman Ali & Misraku Molla Ayalew & Muhammad Ullah, 2024. "Ideological Imprints and Corporate Innovation: Evidence from China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 1029-1068, March.

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