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Philanthropic disaster relief giving as a response to institutional pressure: Evidence from China - ScienceDirect
Source: www-sciencedirect-com.ezproxy.library.uq.edu.au
Article summary:
1. This paper investigates if firms under high institutional pressure donate more to disaster relief than firms under lower institutional pressure.
2. The research finds that large firms and firms with political ties donate significantly more to disaster relief than smaller firms and those without political ties.
3. However, the findings indicate that state-owned enterprises (SOEs) donate no more than non SOEs, and service companies donate significantly less than non-service companies.
Article analysis:
The article “Philanthropic Disaster Relief Giving as a Response to Institutional Pressure: Evidence from China” is an interesting exploration of the relationship between corporate philanthropy and institutional pressure in China. The article provides evidence that large firms and those with political ties are more likely to donate to disaster relief than smaller firms or those without political ties. However, the article does not provide any evidence for why this is the case, nor does it explore any potential counterarguments or risks associated with this phenomenon. Additionally, the article does not present both sides of the argument equally; instead, it focuses solely on the positive aspects of corporate philanthropy in response to institutional pressure. Furthermore, there is a lack of evidence for some of the claims made in the article; for example, while it states that state-owned enterprises (SOEs) donate no more than non SOEs, there is no data provided to support this claim. Finally, there is a lack of discussion about possible risks associated with corporate philanthropy in response to institutional pressure; while it may be beneficial in some cases, it could also lead to negative outcomes such as corruption or misallocation of resources. In conclusion, while this article provides an interesting exploration into corporate philanthropy in China, its trustworthiness and reliability could be improved by providing more evidence for its claims and exploring potential risks associated with this phenomenon.