Philanthropy or profitability: an analysis of the behavior and motivations for corporate social responsibility.

Date

2009

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Anna Floresca F. Abrina

Abstract

Businesses, nowadays, exist and undertake activities not solely for profitability but also for the social alleviation that they may bring. Popularly, these actions done by corporations are known as Corporate Social Responsibility activities. This leads to questions on what really is the prevalent motivation why businesses conduct such activities, profitability or philanthropy. Using Granger causality tests and Ordinary Least Squares (OLS) regressions, the results show that there are more companies that conduct corporate social responsibility mainly to increase profit in the long run than those firms that conduct such activities for philanthropy. However, given the comparison between groups, it is evident that corporate social performance, net worth and the existence of free cash flows is significantly higher in the philanthropic group of companies. In sum, the results show that companies that are motivated by philanthropy do better financially and have more resources to spend on corporate social responsibility and other activities.

Language

English

Location

UPLB College of Economics and Management

Call Number

LG 993.5 2009 E2 V47

Document Type

Thesis

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