Sara A. Morris

Having, giving, and getting: Slack resources, corporate philanthropy, and firm financial performance

This study investigates financial correlates of corporate philanthropy in Fortune 1000 companies using structural equation modeling. The results suggest that cash flow (one of the most discretionary types of organizational slack) has a significant impact on a firm’s cash donations to charitable causes, but monetary donations do not affect firm financial performance. These findings support the accepted view of corporate philanthropy as a discretionary social responsibility and the traditional thinking about firm giving in the business and society literature—that doing well enables doing good. Contrary to some contemporary thinking, the findings imply no significant effect on profits from corporate generosity.

The Role of Moral Intensity in Moral Judgments: An Empirical Investigation

Jones (1991) has proposed an issue-contingent model of ethical decision making by individuals in organizations. The distinguishing feature of the issue was identified as its moral intensity, which determines the moral imperative in the situation. In this study, we adapted three scenarios from the literature in order to examine the issue-contingent model. Findings, based on a student sample, suggest that (1) the perceived and actual dimensions of moral intensity often differed; (2) perceived moral intensity variables, in the aggregate, significantly affected an individuals moral judgments; and (3) some dimensions of moral intensity (namely, perceived social consensus and perceived magnitude of consequences) mattered more than others.

Comparing Big Givers and Small Givers: Financial Correlates of Corporate Philanthropy

In a departure from the traditional studies of corporate philanthropy that focus on board composition, advertising, and social networks, the authors investigate the financial correlates of corporate philanthropy. The research design controls for firm size and industry while observing firms from a variety of industries. The sample contains matched pairs of generous and less generous corporate givers. The authors find, as hypothesized, a positive relationship between a firms cash resources available and cash donations, but no significant relationship between corporate philanthropy and firm financial performance, regardless of whether corporate philanthropy is measured as cash payouts or the aggregate contributions that charities actually receive, and regardless of whether financial performance is gauged using accounting measures or market measures. Whereas the link between available resources and corporate philanthropy is well accepted in the literature on corporate social responsibility, it has been rarely tested and never so definitively found as in this research.

Governance and corporate philanthropy: Restraining Robin Hood?

Although corporate decision makers may justify charitable contributions on strategic grounds, extremely large corporate philanthropic contributions may beperceived by shareholders as unnecessary. If stockholders attempt to limit corporate philanthropy, then governance mechanisms should put a cap on giving amounts. Using a matched-paired sample to control for industry and company size, theauthors compared big givers and small givers. The authors find that blockholders and institutional owners limit corporate philanthropy. This suggests that high levels of corporate philanthropy may be perceived as excessive by influentialstockholders, and some governance mechanisms act to curtail it.

Managers' attitudes about firm responsibilities

A mail survey was conducted in order to investigate whether the importance a manager attaches to corporate ethical and legal responsibilities varies according to personality characteristics, demographic variables, or the perceived moral climates in the managers firm. Respondents were middle- and lower-level managers in 112 for-profit businesses located throughout the United States. As expected, attitudes about corporate ethical responsibility were significantly related to (1) the individuals capacity for empathy and (2) a perceived caring climate in the firm; attitudes about corporate legal responsibility were significantly related to (1) the individuals hierarchical position and (2) an organizational climate perceived to be supportive of law.