Will Companies with Poor Environmental Performance Be More Inclined to Donate?

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DOI: 10.4236/ojbm.2019.74119    490 Downloads   1,069 Views  
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ABSTRACT

In the past, the research on corporate charitable donations has been studied from the strategic motivation and political motivation of enterprises. From the perspective of instrumental motivation, under the China’s policy background of strengthening environmental protection, the study takes listed manufacturing companies in China as a sample to analyze the impact of the enterprises’ environmental performance on corporate donations. The study found that the environmental performance of enterprises has a positive impact on the charitable donations of enterprises. The worse the environmental performance of enterprises, the less inclined they are to make charitable donations. Through further research, it is found that enterprises with poor environmental performance will have worse corporate performance. In this situation, charitable donation will further strengthen the impact of environmental performance on corporate performance, that is, charitable donation by enterprises with poor environmental performance will lead to worse corporate performance. This may also be an explanation that companies with poor environmental performance are less inclined to make charitable donations.

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Wu, R. (2019) Will Companies with Poor Environmental Performance Be More Inclined to Donate?. Open Journal of Business and Management, 7, 1715-1733. doi: 10.4236/ojbm.2019.74119.
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