The development of corporate charitable contributions in the UK

a stakeholder analysis

S Brammer*, A Millington

*Corresponding author for this work

Research output: Contribution to journalArticle

124 Citations (Scopus)

Abstract

This paper investigates the determinants of corporate charitable donations within a comparative study of corporate behaviour in two time periods, 1989-90 and 1998-99. The analysis is based on a longitudinal data set that includes over 400 UK listed companies. The determinants of corporate charitable donations are explored within a stakeholder model and the relationship between corporate charitable donations and a set of firm and industry variables is estimated using OLS. Particular emphasis is placed on industry effects and the impact of social and environmental stakeholders. The results highlight a significant change in behaviour between 1989-90 and 1998-99 that may reflect a strategic response by corporate decision-makers to external concerns over corporate social responsibility. In the early period corporate charitable donations were substantially determined by profits. However, this relationship has weakened during the 1990s as firms have become increasingly responsive to stakeholder influences. The results for the later period emphasize the increasing importance of corporate visibility, and the development of social and environmental influences on corporate charitable contributions.

Original languageEnglish
Pages (from-to)1411-1434
Number of pages24
JournalJournal of Management Studies
Volume41
Issue number8
Early online date26 Nov 2004
DOIs
Publication statusPublished - Dec 2004
Externally publishedYes

Keywords

  • FIRM FINANCIAL PERFORMANCE
  • SOCIAL-RESPONSIBILITY
  • SAMPLE SELECTION
  • UNITED-KINGDOM
  • EMPIRICAL-TEST
  • MANAGEMENT
  • DISCLOSURE
  • OWNERSHIP
  • ESTIMATOR
  • MODELS

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