The Effects of Listed Company Charitable Foundation on Business Relationship of Supply Chain: Based on the Empirical Research of Corporate Social Responsibility

Xindan Chang, Mengke Li and Ning Xiao
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Xindan Chang: School of Business, Beijing International Studies University, Beijing, China
Mengke Li: School of Business, Beijing International Studies University, Beijing, China
Ning Xiao: College of Business & Economics, The Australian National University, Canberra, Australia

Review of Economic Assessment, 2023, vol. 2, issue 2, 36-57

Abstract: The Public Welfare Foundation of a listed company is a non-profit organization with independent legal personality. It is established and funded by a listed company. The purpose of establishing a foundation for a listed company is generally to carry out charitable activities and make important contributions to charitable causes. However, due to the special power separation model, the autonomy of the foundation is poor, and there may be serious agency conflicts, ultimately leading to listed companies becoming beneficiaries of the foundation's charitable activities. We have found from the perspectives of commercial credit, sales, and cooperative relationships that social responsibility initiating organizations (listed companies) can obtain potential benefits from social responsibility fulfilling organizations (listed company public welfare foundations) in supply chain commercial relationships, that is, listed companies that establish public welfare foundations have good supply chain commercial relationships. When a listed company and a public welfare foundation have a close relationship in terms of fund donation, decision-making, business, and naming, the public welfare foundation has a strategic preference in selecting project names, project service areas, project beneficiaries, and project service areas. It prioritizes the interests of the listed company, enabling the listed company to obtain better supply chain business relationships.

Keywords: Listed company foundations; Supply chain business relationships; CSR (search for similar items in EconPapers)
Date: 2023
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