The Interdependence of public and private stakeholder influence: A study of political patronage and corporate philanthropy in China

Nan Jia, Jing Shi, Yongxiang Wang

Research output: Chapter in Book/Report/Conference proceedingChapterResearchpeer-review

Abstract

We argue that the influence of public stakeholders (the state) and private stakeholders (nonstate social or economic stakeholders) on corporate philanthropy is interdependent, in that satisfying the state may increase the degree of scrutiny and pressure exerted by private stakeholders on the firm, particularly in institutional environments that place few checks and balances on the power of the state – thus creating suspicion that political patronage shelters firms’ social and moral wrongdoing. To test this theory, we examine the circumstances under which politically patronized firms engage more (or less) in corporate philanthropy. Utilizing a dataset that encompasses both publically traded and unlisted private firms in China, we find that corporate philanthropy is negatively associated with political patronage among unlisted firms but positively associated with political patronage among listed firms. These results are consistent with the predictions made based on our theoretical arguments. This chapter aims to foster further discussion regarding the interdependence of the influences exerted by different stakeholders on firms.
LanguageEnglish
Title of host publicationSustainability, stakeholder governance, and corporate social responsibility
EditorsSinziana Dorobantu, Ruth V. Aguilera, Jiao Luo, Frances J. Milliken
Place of PublicationBingley
PublisherEmerald Publishing
Pages69-93
Number of pages25
ISBN (Electronic)9781787563155, 9781787563179
ISBN (Print)9781787563162
DOIs
Publication statusPublished - 2018
Externally publishedYes

Publication series

NameAdvances in Strategic Management
PublisherEmerald Publishing
Volume38
ISSN (Print)0742-3322

Fingerprint

Corporate philanthropy
Stakeholder influence
Patronage
China
Interdependence
Stakeholders
Prediction
Private firms
Checks and balances
Economics
Institutional environment
Wrongdoing
Suspicion

Keywords

  • Corporate philanthropy
  • corporate social responsibility
  • stakeholder theory
  • interdependence
  • political patronage
  • political connection
  • China

Cite this

Jia, N., Shi, J., & Wang, Y. (2018). The Interdependence of public and private stakeholder influence: A study of political patronage and corporate philanthropy in China. In S. Dorobantu, R. V. Aguilera, J. Luo, & F. J. Milliken (Eds.), Sustainability, stakeholder governance, and corporate social responsibility (pp. 69-93). (Advances in Strategic Management; Vol. 38). Bingley: Emerald Publishing. https://doi.org/10.1108/S0742-332220180000038007
Jia, Nan ; Shi, Jing ; Wang, Yongxiang. / The Interdependence of public and private stakeholder influence : A study of political patronage and corporate philanthropy in China. Sustainability, stakeholder governance, and corporate social responsibility. editor / Sinziana Dorobantu ; Ruth V. Aguilera ; Jiao Luo ; Frances J. Milliken. Bingley : Emerald Publishing, 2018. pp. 69-93 (Advances in Strategic Management).
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Jia, N, Shi, J & Wang, Y 2018, The Interdependence of public and private stakeholder influence: A study of political patronage and corporate philanthropy in China. in S Dorobantu, RV Aguilera, J Luo & FJ Milliken (eds), Sustainability, stakeholder governance, and corporate social responsibility. Advances in Strategic Management, vol. 38, Emerald Publishing, Bingley, pp. 69-93. https://doi.org/10.1108/S0742-332220180000038007

The Interdependence of public and private stakeholder influence : A study of political patronage and corporate philanthropy in China. / Jia, Nan; Shi, Jing; Wang, Yongxiang.

Sustainability, stakeholder governance, and corporate social responsibility. ed. / Sinziana Dorobantu; Ruth V. Aguilera; Jiao Luo; Frances J. Milliken. Bingley : Emerald Publishing, 2018. p. 69-93 (Advances in Strategic Management; Vol. 38).

Research output: Chapter in Book/Report/Conference proceedingChapterResearchpeer-review

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Jia N, Shi J, Wang Y. The Interdependence of public and private stakeholder influence: A study of political patronage and corporate philanthropy in China. In Dorobantu S, Aguilera RV, Luo J, Milliken FJ, editors, Sustainability, stakeholder governance, and corporate social responsibility. Bingley: Emerald Publishing. 2018. p. 69-93. (Advances in Strategic Management). https://doi.org/10.1108/S0742-332220180000038007