Beyond profits: The linkages between local embeddedness, social legitimacy, and corporate philanthropy in the mining industry

Samuel Adomako and Mai Dong Tran

Corporate Social Responsibility and Environmental Management, 2024, vol. 31, issue 1, 555-565

Abstract: Despite the growing body of research on corporate philanthropy, there remains a lack of understanding regarding how local embeddedness impacts the philanthropic activities of firms. Our study addresses this gap in the philanthropy literature by proposing and testing a model that elucidates this mechanism. Drawing on data from 166 firms operating in the mining industry, our findings indicate that local embeddedness has a positive effect on a firm's social legitimacy. However, we also discovered that this relationship is amplified when there is greater legal inefficiency. Additionally, our results demonstrate that a firm's social legitimacy serves as a mediator in the relationship between local embeddedness and corporate philanthropy. The theoretical and practical implications of these findings are discussed in detail.

Date: 2024
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https://doi.org/10.1002/csr.2585

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Persistent link: https://EconPapers.repec.org/RePEc:wly:corsem:v:31:y:2024:i:1:p:555-565

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