Business, Management and Accounting
5 years ago

Corporate philanthropy in China reduces corporate misconduct, strengthens reputation.

International Review of Economics & Finance
Corporate philanthropy and corporate misconduct: Evidence from China
Jun Chen, Dong Wang, Yixing Tong, Feida Zhang

Paper Summary

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The study looked at how corporate giving affects bad behavior in companies in China. They found that when companies give to charity, they are less likely to do something wrong later on. This is especially true for companies that give consistently, are in places with strong rules, and are not owned by the government. This shows that companies that give to charity want to look good and keep good relationships with others.