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Beyond profits: The linkages between local embeddedness, social legitimacy, and corporate philanthropy in the mining industry

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  • Samuel Adomako
  • Mai Dong Tran

Abstract

Despite the growing body of research on corporate philanthropy, there remains a lack of understanding regarding how local embeddedness impacts the philanthropic activities of firms. Our study addresses this gap in the philanthropy literature by proposing and testing a model that elucidates this mechanism. Drawing on data from 166 firms operating in the mining industry, our findings indicate that local embeddedness has a positive effect on a firm's social legitimacy. However, we also discovered that this relationship is amplified when there is greater legal inefficiency. Additionally, our results demonstrate that a firm's social legitimacy serves as a mediator in the relationship between local embeddedness and corporate philanthropy. The theoretical and practical implications of these findings are discussed in detail.

Suggested Citation

  • Samuel Adomako & Mai Dong Tran, 2024. "Beyond profits: The linkages between local embeddedness, social legitimacy, and corporate philanthropy in the mining industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 555-565, January.
    • Handle: RePEc:wly:corsem:v:31:y:2024:i:1:p:555-565
    DOI: 10.1002/csr.2585
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