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What are the motivations of corporate

philanthropy? An exploratory study

Autoras:
Paula Maria de Jancso Fabiani (apresentadora) - paula@fabiani.com.br
Luciana Marques Vieira
Fundação Getúlio Vargas / Escola de Administração de Empresas de São Paulo
Context
 Increased demand for corporate social responsibility (CSR)
(Manuel & Herron, 2020), SDGs (Rosati & Faria, 2019) and the ESG
agenda (Environmental, Social and Governance).
 World Economic Forum: shift to “stakeholder capitalism,” a model
that “positions private corporations as trustees of society”.
 Corporate giving in the US increased 41% due to COVID-19-related
initiatives; Brazilian Corporate Philanthropy (CP) reached records
in 2020.
 However, CP is still not fully comprehended and strategically
practiced (Porter & Kramer, 2002; Liket & Maas, 2016; Abebe &
Cha, 2018).
Research Question
• Why corporations implement their philanthropy?
• Researching the motivations of CP can help answer
such question.
• Literature review about CP (and motivations of CP).
• Framework for analysis, selected theory: ST.
• This study is part of a more extensive research that
aims to investigate aspects influencing CP.
Literature Review (LR)
395 at Scopus and 347 at Web of
• Search for articles with the words "corporate Science articles identified.
philanthropy", "business philanthropy", "corporate
donation" and "corporate giving" in Scopus and Web of Citation criteria: 117 at Scopus
Science over a forty-year period (1983-2022). and 102 at Web of Science
articles identified.
• Recent articles and recurrent mentioned articles.
Journal criteria: 93 at Scopus
• 24 articles identified (20 “old” and 4 “new”).
and 92 at Web of Science
• The terms "motivation" and "motivations" were articles identified.
searched in identified articles, and the findings were
Search and elimination of
analyzed. Moreover, in the readings of the selected repetitive articles in both bases:
articles, motivations of CP were also mapped, even if 114 articles remained.
not mentioned literally.
Findings from LR
Potential codes for motivation
• Profit, firm value maximization, reputation
• Employee engagement (motivating), retention of talents
• Values, beliefs
• Citizenship
• Community relationship, manipulate environment
• Strategic
• Altruistic, desire to be good
• The ESG and SDGs agendas
Method
 The method has a positivistic deductive qualitative approach (field lacks)
based on a single case study (Eisenhardt, 1989; Eisenhardt & Graebner,
2007; Yin, 1994).
 The selected case for this research is a Brazilian company that practices CP,
that is a “revelatory case” Yin (2003):
 This company has gone from almost zero CP to a CP of 1% of the net profit
and has a extensive donation chain, involving many stakeholders, which is
singular (suppliers and customers are also involved).
 The unit of analysis will be the CP process and the relation between the
company and its stakeholders, especially with civil society organizations
(CSOs) beneficiaries of the company's CP.
Method
 Diverse data sources: semi-structured interviews (Patton, 1990), internal
reports, letters, press releases, websites, and news articles.
 Interview questionnaire revised by 2 other academics and 2 practitioners,
representatives of all primary stakeholders were interviewed, especially
those most involved in the CP process.

 29 interviews with: company individuals from areas most involved with CP, representatives
from intermediaries, representatives from CSOs (or NGOs) recipients of donations, the private
label responsible, and a supplier involved in CP processes. Customers' views were collected
from representatives that deal directly with customers (pharmacy managers).
Codes*
Motivation
Code Definition Code Definition Code Definition Code Definition

An in-vivo code Every company For the CP to be


In-vivo code that
that emerged in should have a strategic, it should
emerged in the
the interviews and citizenship role. reflect company
interviews and
materials. Purposes This concept was values. This
materials. Culture
that go beyond coded from CSR, concept was coded
relates to the
profit-making. It is in which a from ST, in which
attitudes that
also supported by company has the Values values are an
characterize the
Purpose ST, in which the Citizenship (LR) responsibilities to important aspect Culture
role of a company creating societal (LR) in creating societal
company and
guide its practices
is to create societal value (Carroll, value (Freeman,
(Cha &
value (Freeman, 1979; Jamali, 1984; Freeman et
Rajadhyaksha,
1984; Freeman et 2008; Aguinis & al., 2004; Laplume
2021; Liket &
al., 2004; Laplume Glavas, 2012; et al., 2008;
Simaens, 2015;
et al., 2008; Parmar Dmytriyev et al., Parmar et al.,
Simon, 1995).
et al., 2010). 2021). 2010).

* Atlas IT was used for coding and analysis


Results
 Culture and Purpose: explicit in reports and other Reports: codes Citations

documents. Motivation: Culture 32

 Citizenship expressed in many ways: sustainability, culture Motivation: Purpose 31

of giving and community role. Motivation: Values 16


Motivation: Citizenship 1
 Values is also a vital component of the motivation of CP.
 Even though Culture ranked lowest in interviews, 65% of Interviews: codes Citations
the citations were from decision makers (top management
Motivation: Purpose 85
and shareholder family members).
Motivation: Values 67
 Purpose, an in-vivo code, was the most mentioned in the Motivation: Citizenship 58
interviews. Motivation: Culture 43
Contributions
 Empirical evidence that Culture, Values, Purpose, and
Citizenship (codes of Motivation) are important antecedents
influencing CP and the CP process.
 Purpose has become an important facet of CP, which was
not previously mapped in other studies on motivations of
CP.
 Culture, values and history of the company matters.
 Shareholders' engagement in CP matters.
 Analysis of CP in an emergent economy such as Brazil.
Limitations
 Role of the pandemic: to be explored.
 Stage of the investigation process: other analysis will
emerge.
 Scope of studies: other areas of study could be
considered.
 Citations criteria: emergent field.

Further studying the CP process could present even more


relevant contributions to the CP field and to companies
that want to impact our society positively.
References for the presentation (all are in the article)
 Abebe & Cha, 2018  Laplume et al., 2008
 Aguinis & Glavas, 2012  Liket & Maas, 2016
 Carroll, 1979  Liket & Simaens, 2015
 Dmytriyev et al., 2021  Palazzo & Richter, 2005
 Eisenhardt & Graebner, 2007  Parmar et al., 2010
 Eisenhardt, 1989  Patton, 1990
 Freeman et al., 2004  Porter & Kramer, 2002
 Freeman, 1984  Simon, 1995
 Gautier & Pache, 2015  Yin, 2003
 Jamali, 2008  Yin, 1994
Paula Fabiani

Emails: paula@fabiani.com.br
ou pfabiani@idis.org.br

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