Corporate Philanthropy, Multinational Companies and Controversial Countries

Proceedings of the International Association for Business and Society 17:64-69 (2006)
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This paper investigates the degree to which corporate philanthropy is influenced by the extent to which a firm is internationalised and/or whether it hasoperations in one or more controversial countries. Utilising data on a sample of large UK firms, we find evidence of a positive effect not for internationalisation per se, but only for a presence in these controversial countries. More specifically, we find evidence that in this connection the salient feature of a country is a lack of political rights and/or civil liberties, rather than a presence of rampant corruption. Furthermore, this positive impact on charitable giving is restricted to a presence in only those countries that are, according to Freedom House indicators, most lacking (and so controversial) in this respect



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