Sincerity and corporate philanthropy
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Podcast "Philanthropy in question(s)" - Episode 24
Sincerity in corporate philanthropy - Cuypers, Koh & Wang
Beyond asking "if" companies should engage in philanthropy, the question raised in this podcast is "how" to act so that this philanthropy also has a positive impact on the company.
Anne Monier, researcher at the ESSEC Philanthropy Chair, presents in this episode an article by Ilya Cuypers, Ping-Sheng Koh and Heli Wang published in 2016 in the journal Organization Science: "Sincerity in Corporate Philanthropy, Stakeholder Perceptions and Firm Value".
The authors explore how, depending on the type of philanthropic activity and the characteristics of the firm, corporate philanthropy affects differently stakeholders' perceptions of it - and therefore the firm's value.
One of the main interests of this research is to show that being recognized as a "sincere" philanthropist is crucial for such actions to have an impact on the company's value.
The five main ideas of the article:
Anne Monier presents in this episode the five main ideas of this research article:
The importance of distinguishing between symbolic and substantial philanthropic actions, since they do not have the same effect on the company's value.
The importance of perceptions in understanding the effect of philanthropy on company value.
The difference in the effect on company value depending on the type of philanthropic activity - both quantitatively and qualitatively.
The role of the company's characteristics, and in particular the services and products it offers, on the perception of its philanthropic actions.
The role of the company's life-cycle stage in stakeholders' perception of corporate philanthropy.
➡️ Listen to the episode above to learn more!
Other resources on the topic
Barnett ML, Salomon RM (2006), "Beyond dichotomy: The curvilinear relationship between social responsibility and financial performance", Strategic Management J., 27(11): 1101-1122.
Brammer S., Millington A. (2005), “Corporate reputation and philanthropy: an empirical analysis”, Journal of Business Ethics, 61(1):29-44.
Godfrey PC (2005), "The relationship between corporate philanthropy and shareholder wealth: a Risk management perspective", Academy of Mangement Review, 30(4), 777-798.
L’Année Philanthropique, Vol 4 – Ouverture et transparence, 16 November 2022.
« La confiance, socle de la générosité : transparence et contrôle », Carenews, 21 January 2020.
Other episodes with related themes
Symbolic capital and corporate philanthropy: the example of Russian theatres (Yuliya Shymko, Thomas Roulet, Bernardo de Melo Pimentel)
The impact of major events on corporate philanthropy (Andras Tilcsik, Christopher Marquis)
Listen to all episodes of our podcast "Philanthropy in Question(s)"
Every last Wednesday of the month, in an episode of about 10 minutes, we share the discoveries of a researcher on philanthropy in France or internationally, all disciplines included. The goal? To give research a place in everyday life, to contribute to critical thinking and to shed light on societal issues through the prism of philanthropy. Dive with us into the heart of research on giving!
Also to be discovered: "Towards Strategic Philanthropy"
Based on interviews with philanthropists and professionals in the philanthropy sector, this podcast from the ESSEC Philanthropy Chair introduces you to the 5 key dimensions of philanthropy strategy: value, logical framework, style, time horizon and vehicle. The embodiment of the learnings from the book Towards Strategic Philanthropy published by Peter Frumkin, Anne-Claire Pache and Arthur Gautier at Odile Jacob in 2020. To your headphones!
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