IDEAS home Printed from https://ideas.repec.org/a/eee/soceco/v38y2009i4p601-607.html
   My bibliography  Save this article

Social capital and business giving to charity following a natural disaster: An empirical assessment

Author

Listed:
  • Bin, Okmyung
  • Edwards, Bob

Abstract

This study examines the participation of local businesses in disaster relief efforts in their own communities. We utilize a unique survey of 463 businesses in Pitt County, North Carolina, collected shortly after devastating flooding caused by Hurricane Floyd. Our results indicate that managerial social capital especially through religious participation is positively related to provision of assistance to employees as well as making cash contributions and the value of cash donations. Manager ties to civic organizations positively predict in-kind donations including temporarily loaning vehicles and equipment to relief efforts. Local branches of national chains were less likely than locally owned franchises to provide assistance to employees and less likely than independent local businesses to provide in-kind contributions. We do not find evidence that business charitable giving is affected by the number of years the business operated in the community or the number of years the owner or manager has lived in the area.

Suggested Citation

  • Bin, Okmyung & Edwards, Bob, 2009. "Social capital and business giving to charity following a natural disaster: An empirical assessment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(4), pages 601-607, August.
    • Handle: RePEc:eee:soceco:v:38:y:2009:i:4:p:601-607
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/B6W5H-4VPD6NV-1/2/601fe8a5ef26fcf7a7dcb96524921649
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1986. "Fairness and the Assumptions of Economics," The Journal of Business, University of Chicago Press, vol. 59(4), pages 285-300, October.
    2. David P. Baron, 2001. "Private Politics, Corporate Social Responsibility, and Integrated Strategy," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(1), pages 7-45, March.
    3. Foley, Michael W. & Edwards, Bob, 1999. "Is It Time to Disinvest in Social Capital?," Journal of Public Policy, Cambridge University Press, vol. 19(2), pages 141-173, May.
    4. Cainelli, Giulio & Mancinelli, Susanna & Mazzanti, Massimiliano, 2007. "Social capital and innovation dynamics in district-based local systems," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(6), pages 932-948, December.
    5. Kahneman, Daniel & Knetsch, Jack L., 1992. "Valuing public goods: The purchase of moral satisfaction," Journal of Environmental Economics and Management, Elsevier, vol. 22(1), pages 57-70, January.
    6. Eckel, Catherine C. & Grossman, Philip J. & Johnston, Rachel M., 2005. "An experimental test of the crowding out hypothesis," Journal of Public Economics, Elsevier, vol. 89(8), pages 1543-1560, August.
    7. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-1458, December.
    8. Catherine C. Eckel, 2007. "People Playing Games: The Human Face of Experimental Economics," Southern Economic Journal, John Wiley & Sons, vol. 73(4), pages 840-857, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Helms, Sara E. & Thornton, Jeremy P., 2012. "The influence of religiosity on charitable behavior: A COPPS investigation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(4), pages 373-383.
    2. Diogo Hildebrand & Yoshiko Demotta & Sankar Sen & Ana Valenzuela, 2017. "Consumer Responses to Corporate Social Responsibility (CSR) Contribution Type," Post-Print hal-01576949, HAL.
    3. Maksim Belitski & Christina Guenther & Alexander S. Kritikos & Roy Thurik, 2022. "Economic effects of the COVID-19 pandemic on entrepreneurship and small businesses," Small Business Economics, Springer, vol. 58(2), pages 593-609, February.
    4. Diogo Hildebrand & Yoshiko DeMotta & Sankar Sen & Ana Valenzuela & Laura PeracchioEditor & Gita JoharEditor & Jaideep SenguptaAssociate Editor, 2017. "Consumer Responses to Corporate Social Responsibility (CSR) Contribution Type," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 44(4), pages 738-758.
    5. Ann-Christin Grözinger & Sven Wolff & Philipp Julian Ruf & Petra Moog, 2022. "The power of shared positivity: organizational psychological capital and firm performance during exogenous crises," Small Business Economics, Springer, vol. 58(2), pages 689-716, February.
    6. Arthur Gautier & Anne-Claire Pache, 2015. "Research on Corporate Philanthropy: A Review and Assessment," Journal of Business Ethics, Springer, vol. 126(3), pages 343-369, February.
    7. Murad A Mithani, 2017. "Liability of foreignness, natural disasters, and corporate philanthropy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(8), pages 941-963, October.
    8. Chourou, Lamia, 2023. "Corporate donations and religiosity: Cross-country evidence," Journal of Behavioral and Experimental Finance, Elsevier, vol. 39(C).
    9. Diogo Hildebrand & Yoshiko Demotta & Sankar Sen & Ana Valenzuela, 2017. "Consumer Responses to Corporate Social Responsibility (CSR) Contribution Type," Grenoble Ecole de Management (Post-Print) hal-01576949, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amee Kamdar & Steven Levitt & John List & Brian Mullaney & Chad Syverson, 2015. "Once and Done: Leveraging Behavioral Economics to Increase Charitable Contributions," Natural Field Experiments 00775, The Field Experiments Website.
    2. Endre Kildal Iversen & Kristine Grimsrud & Yohei Mitani & Henrik Lindhjem, 2022. "Altruist Talk May (also) Be Cheap: Revealed Versus Stated Altruism as a Predictor in Stated Preference Studies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(3), pages 681-708, November.
    3. Elisabeth Gsottbauer & Jeroen Bergh, 2011. "Environmental Policy Theory Given Bounded Rationality and Other-regarding Preferences," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 49(2), pages 263-304, June.
    4. Vredin Johansson, Maria & Heldt, Tobias & Johansson, Per, 2006. "The effects of attitudes and personality traits on mode choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(6), pages 507-525, July.
    5. Bernd Süssmuth, 2012. "The Econometric Analysis of Willingness to Pay for Intangibles with Experience Good Character," Chapters, in: Wolfgang Maennig & Andrew Zimbalist (ed.), International Handbook on the Economics of Mega Sporting Events, chapter 14, Edward Elgar Publishing.
    6. Franz Hackl & Gerald J. Pruckner, 2005. "Warm glow, free‐riding and vehicle neutrality in a health‐related contingent valuation study," Health Economics, John Wiley & Sons, Ltd., vol. 14(3), pages 293-306, March.
    7. Dean Karlan & John A. List, 2007. "Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment," American Economic Review, American Economic Association, vol. 97(5), pages 1774-1793, December.
    8. Chilton, S. M. & Hutchinson, W. G., 2000. "A note on the warm glow of giving and scope sensitivity in contingent valuation studies," Journal of Economic Psychology, Elsevier, vol. 21(4), pages 343-349, August.
    9. Arbel, Yuval & Bar-El, Ronen & Schwarz, Mordechai E. & Tobol, Yossef, 2019. "To What Do People Contribute? Ongoing Operations vs. Sustainable Supplies," IZA Discussion Papers 12180, Institute of Labor Economics (IZA).
    10. Julie Bastianutti, 2011. "Meeting with David Baron and introducing private politics," Post-Print hal-00657320, HAL.
    11. Korenok, Oleg & Millner, Edward L. & Razzolini, Laura, 2013. "Impure altruism in dictators' giving," Journal of Public Economics, Elsevier, vol. 97(C), pages 1-8.
    12. Bernd Süssmuth & Malte Heyne & Wolfgang Maennig, 2010. "Induced Civic Pride and Integration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(2), pages 202-220, April.
    13. Richard T. Carson & Miko_aj Czajkowski, 2014. "The discrete choice experiment approach to environmental contingent valuation," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 9, pages 202-235, Edward Elgar Publishing.
    14. van der Pol, Thomas & Weikard, Hans-Peter & van Ierland, Ekko, 2012. "Can altruism stabilise international climate agreements?," Ecological Economics, Elsevier, vol. 81(C), pages 112-120.
    15. Gronberg, Timothy J. & Luccasen, R. Andrew & Turocy, Theodore L. & Van Huyck, John B., 2012. "Are tax-financed contributions to a public good completely crowded-out? Experimental evidence," Journal of Public Economics, Elsevier, vol. 96(7-8), pages 596-603.
    16. František Svoboda, 2010. "Ekonomika daru, dar a jeho reflexe v ekonomické teorii [Gifts Economy and Its Reflection in Economics]," Politická ekonomie, Prague University of Economics and Business, vol. 2010(1), pages 105-129.
    17. James Andreoni, 2006. "Giving Gifts to Groups: How Congestible is Altruism?," Levine's Bibliography 321307000000000166, UCLA Department of Economics.
    18. Mirco Tonin & Michael Vlassopoulos, 2014. "An experimental investigation of intrinsic motivations for giving," Theory and Decision, Springer, vol. 76(1), pages 47-67, January.
    19. Gandullia, Luca & Lezzi, Emanuela & Parciasepe, Paolo, 2020. "Replication with MTurk of the experimental design by Gangadharan, Grossman, Jones & Leister (2018): Charitable giving across donor types," Journal of Economic Psychology, Elsevier, vol. 78(C).
    20. Miklós Antal & Ardjan Gazheli & Jeroen C.J.M. van den Bergh, 2012. "Behavioural Foundations of Sustainability Transitions. WWWforEurope Working Paper No. 3," WIFO Studies, WIFO, number 46424, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceco:v:38:y:2009:i:4:p:601-607. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620175 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.