The Impact of Operational Diversity on Corporate Philanthropy: An Empirical Study of U.S. Companies

41 Pages Posted: 19 Nov 2011 Last revised: 13 Apr 2012

See all articles by Jean D. Kabongo

Jean D. Kabongo

University of South Florida

Kiyoung Chang

University of South Florida Sarasota-Manatee - College of Business

Ying Li

University of Washington, Bothell - Business

Date Written: November 17, 2011

Abstract

This paper investigates the impact of operational diversity on corporate philanthropy. Compared to previous studies that have considered the influence of board diversity and CEO gender on corporate philanthropy, this study introduces the concept of operational diversity, which is the implementation of a diversity program at management, employee, and supply chain levels, and further, it explains why operational diversity influences corporate philanthropy, by applying both the stakeholder theory and a resource-based view of a firm. Second, this study also investigates the influence of board diversity on corporate philanthropy. Third, this study uses a large sample of US firms and tries to mitigate possible omitted variables and endogeneity problems that are often overlooked in previous corporate social responsibility research. We demonstrate that operational diversity is a better indicator for predicting future corporate giving than board diversity alone. However, having a woman or a member of a minority as a company’s chief executive officer is not sufficient to impact its charitable giving. This paper will assist researchers, practitioners, and other stakeholders in deepening their understanding of the predictors of corporate giving.

Keywords: corporate philanthropy, operational diversity, board of directors, corporate social responsibility

Suggested Citation

Kabongo, Jean D. and Chang, Kiyoung and Li, Ying, The Impact of Operational Diversity on Corporate Philanthropy: An Empirical Study of U.S. Companies (November 17, 2011). Available at SSRN: https://ssrn.com/abstract=1961294 or http://dx.doi.org/10.2139/ssrn.1961294

Jean D. Kabongo

University of South Florida ( email )

Tampa, FL 33620
United States

Kiyoung Chang (Contact Author)

University of South Florida Sarasota-Manatee - College of Business ( email )

8350 N. Tamiami Trail, SMC-C263
Sarasota, FL 34243-2025
United States
9413594359 (Phone)
9413594367 (Fax)

Ying Li

University of Washington, Bothell - Business ( email )

18115 Campus Way NE
Bothell, WA 98011-8246
United States

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