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Social capital and business giving to charity following a natural disaster: An empirical assessment

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  • Bin, Okmyung
  • Edwards, Bob

Abstract

This study examines the participation of local businesses in disaster relief efforts in their own communities. We utilize a unique survey of 463 businesses in Pitt County, North Carolina, collected shortly after devastating flooding caused by Hurricane Floyd. Our results indicate that managerial social capital especially through religious participation is positively related to provision of assistance to employees as well as making cash contributions and the value of cash donations. Manager ties to civic organizations positively predict in-kind donations including temporarily loaning vehicles and equipment to relief efforts. Local branches of national chains were less likely than locally owned franchises to provide assistance to employees and less likely than independent local businesses to provide in-kind contributions. We do not find evidence that business charitable giving is affected by the number of years the business operated in the community or the number of years the owner or manager has lived in the area.

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  • Bin, Okmyung & Edwards, Bob, 2009. "Social capital and business giving to charity following a natural disaster: An empirical assessment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(4), pages 601-607, August.
    • Handle: RePEc:eee:soceco:v:38:y:2009:i:4:p:601-607
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    Cited by:

    1. Helms, Sara E. & Thornton, Jeremy P., 2012. "The influence of religiosity on charitable behavior: A COPPS investigation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(4), pages 373-383.
    2. Huang, Ruixian & Shi, Yujing & Li, Danyang & Wang, Shuoxiang & Jia, Zhehao, 2024. "Religious atmosphere, seismic impact, and corporate charitable donations in China," Energy Economics, Elsevier, vol. 131(C).
    3. Diogo Hildebrand & Yoshiko Demotta & Sankar Sen & Ana Valenzuela, 2017. "Consumer Responses to Corporate Social Responsibility (CSR) Contribution Type," Post-Print hal-01576949, HAL.
    4. Maksim Belitski & Christina Guenther & Alexander S. Kritikos & Roy Thurik, 2022. "Economic effects of the COVID-19 pandemic on entrepreneurship and small businesses," Small Business Economics, Springer, vol. 58(2), pages 593-609, February.
    5. Diogo Hildebrand & Yoshiko DeMotta & Sankar Sen & Ana Valenzuela & Laura PeracchioEditor & Gita JoharEditor & Jaideep SenguptaAssociate Editor, 2017. "Consumer Responses to Corporate Social Responsibility (CSR) Contribution Type," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 44(4), pages 738-758.
    6. Kentaro Azuma & Nicolas M. Dahan & Jonathan Doh, 2024. "Shareholder reaction to corporate philanthropy after a natural disaster: an empirical exploration of the “signaling financial prospects” explanation," Asia Pacific Journal of Management, Springer, vol. 41(3), pages 1421-1449, September.
    7. Ann-Christin Grözinger & Sven Wolff & Philipp Julian Ruf & Petra Moog, 2022. "The power of shared positivity: organizational psychological capital and firm performance during exogenous crises," Small Business Economics, Springer, vol. 58(2), pages 689-716, February.
    8. Arthur Gautier & Anne-Claire Pache, 2015. "Research on Corporate Philanthropy: A Review and Assessment," Journal of Business Ethics, Springer, vol. 126(3), pages 343-369, February.
    9. Murad A Mithani, 2017. "Liability of foreignness, natural disasters, and corporate philanthropy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(8), pages 941-963, October.
    10. Chourou, Lamia, 2023. "Corporate donations and religiosity: Cross-country evidence," Journal of Behavioral and Experimental Finance, Elsevier, vol. 39(C).
    11. Diogo Hildebrand & Yoshiko Demotta & Sankar Sen & Ana Valenzuela, 2017. "Consumer Responses to Corporate Social Responsibility (CSR) Contribution Type," Grenoble Ecole de Management (Post-Print) hal-01576949, HAL.

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