Hidden in Plain Sight: The Role of Corporate Board of Directors in Public Charity Lobbying
67 Pages Posted: 29 Sep 2020 Last revised: 27 Mar 2021
Date Written: March 26, 2021
We show that public charities with corporate directors on their boards spend more on lobbying for connected firms' industry interests. The effects of board connections are stronger when firms have greater lobbying expenditures themselves or when charities are constrained on funding. We rule out spurious factors with firm-charity pair fixed effects, and address reverse causality concerns using director turnovers as shocks to connections. Consistent with quid-pro-quo relationships, we find that connected firms benefit from increased procurement contracts, and that connected charities receive more grants and donations. Our results highlight executive charitable engagement as a complementary avenue for corporate political activities.
Keywords: Corporate Political Activities, Corporate Social Responsibility, Board of Directors, Political Connections, Lobbying, Public Charities, Nonprofit Organizations
JEL Classification: D72, G34, G38, P16
Suggested Citation: Suggested Citation