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Corporate philanthropy and employee wellbeing: do types of corporate philanthropy matter?

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  • Chih-Hai Yang

    (National Central University)

Abstract

This study examines whether corporate philanthropy, one corporate social responsibility (CSR) activity, influences employee wellbeing. Based on a panel dataset of listed companies in Taiwan, our empirical analyses obtained by using a panel data model show that engagement and charitable donations are irrelevant to employee wage packages. Dividing donation expenditures into donations to firm-related foundations and donations to unrelated recipients, donations to firm-related foundations have no influence on wage packages. By contrast, irregular and unscheduled donations, namely, donations to unrelated recipients, have a negative association with employee wage packages. The results remain the same using propensity score matching (PSM) and system generalized method of moments to conduct robustness checks. The first-stage PSM estimations on the determinants of corporate philanthropy indicate that firm characteristics such as firm size, firm age, earning performance, and stakeholders are factors influencing charitable donations.

Suggested Citation

  • Chih-Hai Yang, 2022. "Corporate philanthropy and employee wellbeing: do types of corporate philanthropy matter?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(4), pages 803-828, December.
    • Handle: RePEc:spr:eurasi:v:12:y:2022:i:4:d:10.1007_s40821-022-00211-6
    DOI: 10.1007/s40821-022-00211-6
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    More about this item

    Keywords

    Corporate philanthropy; Employee wellbeing; Charitable donations; Tax avoidance;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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