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

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  • 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
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    References listed on IDEAS

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    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.
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    3. Foley, Michael W. & Edwards, Bob, 1999. "Is It Time to Disinvest in Social Capital?," Journal of Public Policy, Cambridge University Press, vol. 19(02), pages 141-173, May.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. Catherine C. Eckel, 2007. "People Playing Games: The Human Face of Experimental Economics," Southern Economic Journal, Southern Economic Association, vol. 73(4), pages 840-857, April.
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    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. repec:oup:jconrs:v:44:y:2017:i:4:p:738-758. is not listed on IDEAS
    3. 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.
    4. 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.
    5. repec:pal:jintbs:v:48:y:2017:i:8:d:10.1057_s41267-017-0104-x is not listed on IDEAS

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