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Diffusion of Corporate Philanthropy in Social and Political Network Environments: Evidence from China

Author

Listed:
  • Wenqing Wu

    (College of Management and Economics, Tianjin University, Tianjin 300072, China)

  • Kexin Yu

    (College of Management and Economics, Tianjin University, Tianjin 300072, China)

  • Chien-Chi Chu

    (Department of Finance, Business School, Shantou University, Shantou 515063, China
    Research Institute for Guangdong-Taiwan Business Cooperation, Shantou University, Shantou 515063, China)

  • Jie Zhou

    (College of Tourism and Service Management, Nankai University, Tianjin 300071, China)

  • Hong Xu

    (College of Tourism and Service Management, Nankai University, Tianjin 300071, China)

  • Sang-Bing Tsai

    (Zhongshan Institute, University of Electronic Science and Technology of China, Guangzhou 528400, China
    China Academy of Corporate Governance, Nankai University, Tianjing 300071, China
    College of Business Administration, Capital University of Economics and Business, Beijing 100070, China)

Abstract

Based on the strong influence social networks have on managerial decision-making, as an important aspect of the strategic decision of the company, it is necessary to study how corporate social responsibility (CSR) actions could be affected by social networks. An analysis of 1725 Chinese listed firms and 40,484 executives from 2010 to 2014 showed that corporate philanthropy behavior will diffuse in social networks; more concretely, the higher the degree of social network centrality, the higher the enterprise’s donation level. Furthermore, the results also show that the role of social network centrality on corporate donation levels can be moderated by political connections. This study offers empirical evidence for developing a theoretical framework of CSR interaction and communication relevant to social networks, and offers insights into corporate philanthropy behavior based on social networks.

Suggested Citation

  • Wenqing Wu & Kexin Yu & Chien-Chi Chu & Jie Zhou & Hong Xu & Sang-Bing Tsai, 2018. "Diffusion of Corporate Philanthropy in Social and Political Network Environments: Evidence from China," Sustainability, MDPI, vol. 10(6), pages 1-17, June.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:6:p:1897-:d:150965
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    References listed on IDEAS

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    1. Emmanuel Okewu & Sanjay Misra & Jonathan Okewu & Robertas Damaševičius & Rytis Maskeliūnas, 2019. "An Intelligent Advisory System to Support Managerial Decisions for A Social Safety Net," Administrative Sciences, MDPI, vol. 9(3), pages 1-14, August.
    2. Dang, Vinh Q.T. & Otchere, Isaac & So, Erin P.K., 2022. "Does the nature of political connection matter for corporate social responsibility engagement? Evidence from China," Emerging Markets Review, Elsevier, vol. 52(C).
    3. Liqi Yi & Tao Li & Xiangyi Wang & Gentana Ge & Ting Zhang, 2022. "Corporate social responsibility performance evaluation from the perspective of stakeholder heterogeneity based on fuzzy analytical hierarchy process integrated TOPSIS," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 918-935, July.
    4. Ma Zhong & Weiqi Zhao & Yasir Shahab, 2022. "The philanthropic response of substantive and symbolic corporate social responsibility strategies to COVID‐19 crisis: Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(2), pages 339-355, March.

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