Motives, Timing, and Targets of Corporate Philanthropy: A Tripartite Classification Scheme of Charitable Giving

• Author: Richard C. Peters,Joe M. Ricks
• Date: 01 September 2013
• DOI: http://doi.org/10.1111/basr.12016
• Published date: 01 September 2013

Motives, Timing, and Targets

of Corporate Philanthropy:

A Tripartite Classification

Scheme of Charitable Giving

JOE M. RICKS, JR. AND RICHARD C. PETERS

ABSTRACT

Although corporate philanthropy has been an important

part of American business for more than a century, the

motives and consequences of corporate philanthropy are

not well understood. This paper develops a richer clas-

sification scheme of philanthropic activity, to aid in

theory development and management. Examining simul-

taneously the domains of why firms give (motive), when

they give (timing) and to whom they give (target), a con-

ceptual model identifying distinct categories of philan-

thropic activity is developed and its implications to

present and future research discussed.

INTRODUCTION

Corporate philanthropy (CP), the act of a business enter-

prise donating a portion of its resources to a social cause,

has been an important part of American business for over

a century. The concept has also found its way into multiple

Joe M. Ricks, Jr. is Professor of Sales and Marketing, Chair of Division of Business, Xavier

University of Louisiana, New Orleans, LA. E-mail: jmricks@xula.edu. Richard C. Peters is

Assistant Professor of Management, Division of Business, Xavier University of Louisiana New

Orleans, LA. E-mail: rpeters1@xula.edu.

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Business and Society Review 118:3 413–436

© 2013 Center for Business Ethics at Bentley University. Published by Wiley Periodicals, Inc.,

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streams of academic research including areas of business ethics,

marketing, management, and even competitive strategy, making it

both a popular and evolving subject for scholarship.

This popularity notwithstanding, there is still much complexity

and ambiguity associated with the concept, its causes, and its

consequences (Godfrey 2005; Love and Higgins 2007; Muller and

Kraüssl 2011). Thus, while we know more about CP than ever

before, there remains a significant need to document this knowl-

edge. The important attributes of CP need to be acknowledged,

analyzed, and integrated into a simple and manageable framework

for use by scholars and practitioners.

To provide such a framework, we propose a classification of CP

that focuses on three key dimensions: time, target, and motive.

Each has been previously discussed in academic literature (cf.

Dean 2003; Godfrey 2005; Hillman and Keim 2001; Mescon and

Tilson 1987; Ricks 2005; Sanchez 2000). However, no study has

considered all three simultaneously. We hope to address this

deficiency with our model, which goes beyond a mere literature

review to contribute significantly to the theory of CP.

Hunt (1983), citing Blalock (1969, p. 2) and Alderson (1957, p.

5) in his discussion, suggests that two elements are necessary

for theory development: (1) conceptual schemes or typologies;

and (2) a set of systematically related propositions that are

empirically testable and relevant. We primarily focus on the first

element, and recognize, that while classifications are not neces-

sarily theories themselves, they are significant starting points for

theoretical construction (Doty and Glick 1994; George and

Bennett 2003). Focusing on fundamental theory and conceptu-

alization rather than relationships and outcomes might prove

more useful to present and future research endeavours, a point

made by some about Corporate Social Responsibility (CSR),

which is arguably the parent of CP (cf. Barnett 2007; Basu and

Palazzo 2008).

We begin by presenting a brief descriptive history of CP that

demonstrates the evolution of the concept, beginning in the early

1950s. This will be followed by a discussion of the three dimen-

sions that we base our classifications on. Then, we will consider

each of the relevant categories identified in our model. Finally, we

will provide some theoretical and managerial implications of our

framework.

414 BUSINESS AND SOCIETY REVIEW