Corporate Philanthropy and Corporate Reputation During a Global Health Crisis Insights from the COVID-19 Pandemic in Nigeria
Main Article Content
Abstract
The aim of the study is to examine the nexus between corporate philanthropy (CP) and corporate reputation (CR) from the perspective of a global health emergency, cultural orientation, and African context. The study adopted a cross-sectional survey design. A purposive sampling procedure was adopted in the selection of 200 respondents and data were collected from the 200 respondents (Recipients of palliatives) through a structured questionnaire. Considering organizations as the unit of analysis, the data were aggregated, averaged and analyzed through paired (dependent-sample) t-tests, multivariate regression and moderation analysis. The results demonstrate that corporate philanthropy before and during the pandemic had a positive effect on corporate reputation, there was a significant difference in the perceived corporate reputation before and during the COVID-19 pandemic while cultural orientation and COVID-19 health crisis orientation moderated the relationship between CP and CR during the pandemic. This study is the first of its kind to empirical examine the link between CP and CR from the lens of cultural milieu, global health emergency of COVID-19 and in African context. The study contributed to management theory and practice through critical findings from the dimension of a global health crisis.
Article Details
Copyright (c) 2024 Timinepere Ogele Court, Isichei Ejikeme Emmanuel (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
Timinepere Ogele Court, University of Africa, Toru-Orua, Nigeria.
Department of Business Administration,
University of Africa, Toru-Orua, Nigeria.
Isichei Ejikeme Emmanuel, University of Abuja, Abuja, Nigeria.
Department of Business Administration,
University of Abuja, Abuja, Nigeria.
Abbas, A., Ilham, M., Triani, N., Arizah, A., & Rayyani, W. O. (2020). The Involvement of Firms in Helping Fight the Pandemic of COVID-19: Evidence from Indonesia. Inovbiz: Jurnal Inovasi Bisnis, 8(1), 72-76
https://doi.org/10.35314/inovbiz.v8i1.1314 DOI: https://doi.org/10.35314/inovbiz.v8i1.1314
Aguilera‐Caracuel, J., & Guerrero‐Villegas, J. (2018). How corporate social responsibility helps MNEs to improve their reputation. The moderating effects of geographical diversification and operating in developing regions. Corporate social responsibility and environmental management, 25(4), 355-372.
https://doi.org/10.1002/csr.1465 DOI: https://doi.org/10.1002/csr.1465
Aguinis, H., Villamor, I., & Gabriel, K. P. (2020). Understanding employee responses to COVID-19: A behavioral corporate social responsibility perspective (in press), 1-30
https://doi.org/10.1108/MRJIAM-06-2020-1053 DOI: https://doi.org/10.1108/MRJIAM-06-2020-1053
Bala, B., & Tar, U. A. (2021). The Giant of Africa? Explaining the Nigerian Governance, Security, and Development Paradox. In The Governance, Security and Development Nexus (pp. 315-339). Palgrave Macmillan, Cham.
https://doi.org/10.1007/978-3-030-49348-6_16 DOI: https://doi.org/10.1007/978-3-030-49348-6_16
Barnett, M. L., Jermier, J. M., & Lafferty, B. A. (2006). Corporate reputation: The definitional landscape. Corporate reputation review, 9(1), 26-38.
https://doi.org/10.1057/palgrave.crr.1550012 DOI: https://doi.org/10.1057/palgrave.crr.1550012
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
https://doi.org/10.1177/014920639101700108 DOI: https://doi.org/10.1177/014920639101700108
Barney, J.B., & Clark, D.N. (2007). Resource-based theory: Creating and sustaining competitive advantage. New York, NY: Oxford University Press.
https://doi.org/10.1093/oso/9780199277681.001.0001 DOI: https://doi.org/10.1093/oso/9780199277681.001.0001
Bharti, S. S. (2021). Socio-Economic Impact of COVID-19 Pandemic on Small and Medium-scale Enterprises (SMEs) in India, Annals of Management and Organization Research, 3(2),129-139.
https://doi.org/10.35912/amor.v3i2.1260 DOI: https://doi.org/10.35912/amor.v3i2.1260
Brammer, S., & Millington, A. (2005). Corporate reputation and philanthropy: An empirical analysis. Journal of business ethics, 61, 29-44.
https://doi.org/10.1007/s10551-005-7443-4 DOI: https://doi.org/10.1007/s10551-005-7443-4
Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39-48.
https://doi.org/10.1016/0007-6813(91)90005-G DOI: https://doi.org/10.1016/0007-6813(91)90005-G
Carroll, A. B. (2021) Corporate social responsibility (CSR) and the COVID-19 pandemic: organizational and managerial implications, Journal of Strategy and Management, 14 (3), pp. 315-330. https://doi.org/10.1108/JSMA-07-2021-0145
https://doi.org/10.1108/JSMA-07-2021-0145 DOI: https://doi.org/10.1108/JSMA-07-2021-0145
Chartterjee, S. & Hadi, S. A (2012) Regression analysis by example, 5th ed., New Jersey: John Wily & Sons
Chun, J. S., Shin, Y., Choi, J. N., & Kim, M. S. (2013). How does corporate ethics contribute to firm financial performance? The mediating role of collective organizational commitment and organizational citizenship behavior. Journal of Management, 39(4), 853-877. https://doi.org/10.1177/0149206311419662
https://doi.org/10.1177/0149206311419662 DOI: https://doi.org/10.1177/0149206311419662
Chun, R. (2005). Corporate reputation: Meaning and measurement. International journal of management reviews, 7(2), 91-109.
https://doi.org/10.1111/j.1468-2370.2005.00109.x DOI: https://doi.org/10.1111/j.1468-2370.2005.00109.x
Collins, M. (1995). Corporate philanthropy‐potential threat or opportunity? Business Ethics: A European Review, 4(2), 102-108
https://doi.org/10.1111/j.1467-8608.1995.tb00236.x DOI: https://doi.org/10.1111/j.1467-8608.1995.tb00236.x
de Graaf, F. J. (2016). Corporate social responsibility, governance and stakeholders: A bank in the upbeat of the crisis. Critical Perspectives on International Business.12(4), 388-421
https://doi.org/10.1108/cpoib-11-2013-0048 DOI: https://doi.org/10.1108/cpoib-11-2013-0048
Dong, Q., & Lu, J. (2020). In the Shadow of the Government: The Chinese Nonprofit Sector in the COVID-19 Crisis. The American Review of Public Administration, https://doi.org/10.1177/0275074020942457
https://doi.org/10.1177/0275074020942457 DOI: https://doi.org/10.1177/0275074020942457
Du, X., Jian, W., Du, Y., Feng, W., & Zeng, Q. (2014). Religion, the nature of ultimate owner, and corporate philanthropic giving: Evidence from China. Journal of Business Ethics, 123(2), 235-256.
https://doi.org/10.1007/s10551-013-1804-1 DOI: https://doi.org/10.1007/s10551-013-1804-1
Fombrun, C. J., Gardberg, N. A., & Sever, J. M. (2000). The Reputation quotient SM: A multi-stakeholder measure of corporate reputation. Journal of Brand management, 7(4), 241-255.
https://doi.org/10.1057/bm.2000.10 DOI: https://doi.org/10.1057/bm.2000.10
Fornell C, & Larcker DF. (1981). Evaluating structural equations models with unobservable variables and measurement error. Journal of Marketing Research; 18:39-50.
https://doi.org/10.1177/002224378101800104 DOI: https://doi.org/10.1177/002224378101800104
Freeman, R. E. (1998). Strategic management: A stakeholder approach. Boston: Pitman Publishing
Freeman, R. E. (2010). Strategic management: A stakeholder approach. New York: Cambridge University Press
https://doi.org/10.1017/CBO9781139192675 DOI: https://doi.org/10.1017/CBO9781139192675
Freeman, R. E. (2015). Stakeholder theory. Wiley Encyclopedia of Management, 1-6.
https://doi.org/10.1002/9781118785317.weom020179 DOI: https://doi.org/10.1002/9781118785317.weom020179
Freeman, R. E., & Reed, D. L. (1983). Stockholders and stakeholders: A new perspective on corporate governance. California management review, 25(3), 88-106
https://doi.org/10.2307/41165018 DOI: https://doi.org/10.2307/41165018
Gao, S.S. and Zhang, J.J. (2006).Stakeholder engagement, social auditing and corporate sustainability, Business Process Management Journal, 12(6)722-740. https://doi.org/10.1108/14637150610710891
https://doi.org/10.1108/14637150610710891 DOI: https://doi.org/10.1108/14637150610710891
Godfrey, P. C. (2005). The relationship between corporate philanthropy and shareholder wealth: A risk management perspective. Academy of Management Review, 30(4), 777-798
https://doi.org/10.5465/amr.2005.18378878 DOI: https://doi.org/10.5465/amr.2005.18378878
Goodpaster, K. E. (1991). Business ethics and stakeholder analysis. Business Ethics Quarterly, 53-73. DOI: https://doi.org/10.1017/S1052150X00008782
https://doi.org/10.2307/3857592 DOI: https://doi.org/10.2307/3857592
Hair, J. E., Anderson, R. E., Babin, B. J., & Black, W. C. (2010). Multivariate data analysis: A global perspective (Vol 7), Upper Saddle River, NJ: Pearson
Hayes, F. A. (2022). Introduction to Mediation, Moderation, and Conditional Process Analysis: A Regression Based Approach, 3rd edn. The Guildford Press.
He, H., & Harris, L. (2020). The impact of Covid-19 pandemic on corporate social responsibility and marketing philosophy. Journal of business research, 116, 176-182.
https://doi.org/10.1016/j.jbusres.2020.05.030 DOI: https://doi.org/10.1016/j.jbusres.2020.05.030
Hu, L. t., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A multidisciplinary Journal, 6(1), 1-55.
https://doi.org/10.1080/10705519909540118 DOI: https://doi.org/10.1080/10705519909540118
Josephine Para-Mallam, O. (2006). Faith, gender and development agendas in Nigeria: conflicts, challenges, and opportunities. Gender & Development, 14(3), 409-421.
https://doi.org/10.1080/13552070600980898 DOI: https://doi.org/10.1080/13552070600980898
Le, T. T. (2022). Corporate social responsibility and SMEs' performance: mediating role of corporate image, corporate reputation and customer loyalty. International Journal of Emerging Markets. https://doi.org/10.1108/IJOEM-07-2021-1164
https://doi.org/10.1108/IJOEM-07-2021-1164 DOI: https://doi.org/10.1108/IJOEM-07-2021-1164
Levine, M. D., Stephan, F. D., Krehbiel, C. T. & Bereson, L. M. (2008). Statistics for managers: Using Microsoft excel, 5th ed., Upper Saddle River: Pearson Education
Li, X., Li, C., Wang, Z., Jiao, W., & Pang, Y. (2021). The effect of corporate philanthropy on corporate performance of Chinese family firms: The moderating role of religious atmosphere. Emerging Markets Review, 49, 100-757.
https://doi.org/10.1016/j.ememar.2020.100757 DOI: https://doi.org/10.1016/j.ememar.2020.100757
Liu, Y., Lee, J. M., & Lee, C. (2020). The challenges and opportunities of a global health crisis: The management and business implications of COVID-19 from an Asian perspective. Asian Business & Management,1-12, https://dx.doi.org/10.1057%2Fs41291-020-00119-x
https://doi.org/10.1057/s41291-020-00119-x DOI: https://doi.org/10.1057/s41291-020-00119-x
Lopez-De-Pedro, J. M., & Rimbau-Gilabert, E. (2012). Stakeholder approach: What effects should we take into account in contemporary societies? Journal of Business Ethics, 107(2), 147-158.
https://doi.org/10.1007/s10551-011-1029-0 DOI: https://doi.org/10.1007/s10551-011-1029-0
MacCallum, R. C. and Hong, S. (1997). Power analysis in covariance structure modeling using gfi and agfi. Multivariate Behavioral Research, 32(2):193-210
https://doi.org/10.1207/s15327906mbr3202_5 DOI: https://doi.org/10.1207/s15327906mbr3202_5
Mao, Y., He, J., Morrison, A. M., & Andres Coca-Stefaniak, J. (2020). Effects of tourism CSR on employee psychological capital in the COVID-19 crisis: From the perspective of conservation of resources theory. Current Issues in Tourism, 1-19.
https://doi.org/10.1080/13683500.2020.1770706 DOI: https://doi.org/10.1080/13683500.2020.1770706
Marinetto, M. (1999). The historical development of business philanthropy: Social responsibility in the new corporate economy. Business History, 41(4), 1-20.
https://doi.org/10.1080/00076799900000342 DOI: https://doi.org/10.1080/00076799900000342
Marques, P., Bernardo, M., Presas, P., & Simon, A. (2019). Corporate social responsibility in a local subsidiary: Internal and external stakeholders'power. EuroMed Journal of Business. https://doi.org/10.1108/EMJB-01-2019-0013
https://doi.org/10.1108/EMJB-01-2019-0013 DOI: https://doi.org/10.1108/EMJB-01-2019-0013
McDonald, K., & Scaife, W. (2011). Print media portrayals of giving: exploring national 'cultures of philanthropy'. International Journal of Nonprofit and Voluntary Sector Marketing, 16(4), 311-324.
https://doi.org/10.1002/nvsm.430 DOI: https://doi.org/10.1002/nvsm.430
Mol-Gómez-Vázquez, A., Hernández-Cánovas, G., & Koëter-Kant, J. (2020). Do foreign banks intensify borrower discouragement? The role of developed European institutions in ameliorating SME financing constraints. International Small Business Journal, 38(1), 3-20.
https://doi.org/10.1177/0266242619868231 DOI: https://doi.org/10.1177/0266242619868231
Ode-Ichakpa, I., Cleeve, E, Amadi C & Osemeke, G (2020). A business case argument for corporate social responsibility disclosure in Nigeria, Advance online, Africa Journal of Management, DOI: 10.1080/23322373.2020.1779450
https://doi.org/10.1080/23322373.2020.1779450 DOI: https://doi.org/10.1080/23322373.2020.1779450
Ojeme, M., & Robson, J. (2020). Revisiting the mediating effect of normative commitment in B2B bank relationships in Nigeria. International Journal of Bank Marketing, 38(5), 1159-1175. https://doi.org/10.1108/IJBM-02-2020-0068
https://doi.org/10.1108/IJBM-02-2020-0068 DOI: https://doi.org/10.1108/IJBM-02-2020-0068
Okpara, J. O. (2014). The effects of national culture on managers' attitudes toward business ethics: Implications for organizational change. Journal of Accounting & Organizational Change.10 (2),174-189.
https://doi.org/10.1108/JAOC-07-2012-0046 DOI: https://doi.org/10.1108/JAOC-07-2012-0046
Osemeke, L., Adegbite, S., & Adegbite, E. (2016). Corporate social responsibility initiatives in Nigeria. In S. O. Idowu & R. Schmidpeter (Eds.) Key initiatives in corporate social responsibility (pp. 357-375). Springer, Cham
https://doi.org/10.1007/978-3-319-21641-6_17 DOI: https://doi.org/10.1007/978-3-319-21641-6_17
Ozili, P. K. (2020). COVID-19 in Africa: socioeconomic impact, policy response and opportunities. Policy Response and Opportunities (April 13, 2020)
https://doi.org/10.2139/ssrn.3574767 DOI: https://doi.org/10.2139/ssrn.3574767
Pérez-Cornejo, C., de Quevedo-Puente, E., & Delgado-García, J. B. (2019). How to manage corporate reputation? The effect of enterprise risk management systems and audit committees on corporate reputation. European Management Journal, 37(4), 505-515.
https://doi.org/10.1016/j.emj.2019.01.005 DOI: https://doi.org/10.1016/j.emj.2019.01.005
Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of applied psychology, 88(5), 879-903
https://doi.org/10.1037/0021-9010.88.5.879 DOI: https://doi.org/10.1037/0021-9010.88.5.879
Porter, M. E., & Kramer, M. R. (2002). The competitive advantage of corporate philanthropy. Harvard business review, 80(12), 56-68.
Puncheva-Michelotti, P., McColl, R., Vocino, A., & Michelotti, M. (2014). Corporate patriotism as a source of corporate reputation: a comparative multi-stakeholder approach. Journal of Strategic Marketing, 22(6), 471-493.
https://doi.org/10.1080/0965254X.2014.885989 DOI: https://doi.org/10.1080/0965254X.2014.885989
Saiia, D. H., Carroll, A. B., & Buchholtz, A. K. (2003). Philanthropy as strategy: When corporate charity "Begins at Home." Business & Society, 42(2), 169-201. https://doi.org/10.1177/0007650303042002002
https://doi.org/10.1177/0007650303042002002 DOI: https://doi.org/10.1177/0007650303042002002
Schuyt, T. N., Bekkers, R. H. F. P., & Smit, J. H. (2010). The philanthropy scale: A sociological perspective in measuring new forms of pro social behaviour. Social Work & Society, 8(1), 121-135.
https://doi.org/10.1037/t57804-000 DOI: https://doi.org/10.1037/t57804-000
Selinger, L. (2004). The forgotten factor: The uneasy relationship between religion and development. Social compass, 51(4), 523-543.
https://doi.org/10.1177/0037768604047872 DOI: https://doi.org/10.1177/0037768604047872
Seifert, B., Morris, S. A., & Bartkus, B. R. (2004). Having, giving, and getting: Slack resources, corporate philanthropy, and firm financial performance. Business & society, 43(2), 135-161.
https://doi.org/10.1177/0007650304263919 DOI: https://doi.org/10.1177/0007650304263919
Singh, K., & Misra, M. (2021). Linking corporate social responsibility (CSR) and organizational performance: The moderating effect of corporate reputation. European Research on Management and Business Economics, 27(1), 100139.
https://doi.org/10.1016/j.iedeen.2020.100139 DOI: https://doi.org/10.1016/j.iedeen.2020.100139
Sodiq, Y. (2017). Nigeria: The Giant of Africa. In A history of the application of Islamic law in Nigeria (pp. 1-25). Palgrave Macmillan, Cham.
https://doi.org/10.1007/978-3-319-50600-5_1 DOI: https://doi.org/10.1007/978-3-319-50600-5_1
Sun, L. Y., Aryee, S., & Law, K. S. (2007). High-performance human resource practices, citizenship behavior, and organizational performance: A relational perspective. Academy of Management Journal, 50(3), 558-577
https://doi.org/10.5465/amj.2007.25525821 DOI: https://doi.org/10.5465/amj.2007.25525821
Su, W., & Sauerwald, S. (2018). Does corporate philanthropy increase firm value? The moderating role of corporate governance. Business & Society, 57(4), 599-635.
https://doi.org/10.1177/0007650315613961 DOI: https://doi.org/10.1177/0007650315613961
Szőcs, I., Schlegelmilch, B. B., Rusch, T., & Shamma, H. M. (2016). Linking cause assessment, corporate philanthropy, and corporate reputation. Journal of the Academy of Marketing Science, 44, 376-396.Shin, H., Sharma, A., Nicolau, J. L., & Kang, J. (2021). The impact of hotel CSR for strategic philanthropy on booking behavior and hotel performance during the COVID-19 pandemic. Tourism Management, 85, 104322.
https://doi.org/10.1016/j.tourman.2021.104322 DOI: https://doi.org/10.1016/j.tourman.2021.104322
Teck Hui, L. (2008). Combining faith and CSR: a paradigm of corporate sustainability, International Journal of Social Economics, 35 (6)449-465.
https://doi.org/10.1108/03068290810873429 DOI: https://doi.org/10.1108/03068290810873429
Thanetsunthorn, N. (2015). The impact of national culture on corporate social responsibility: evidence from cross-regional comparison. Asian Journal of Business Ethics, 4(1), 35-56.
https://doi.org/10.1007/s13520-015-0042-2 DOI: https://doi.org/10.1007/s13520-015-0042-2
Unah, L. (2020, April 14). Nigerian private sector donates more than most other African countries in the fight against COVID-19. African Economy. https://african.business/2020/04/economy/nigerian-private-sector-donates-more-than-most-other-african-countries-in-fight-against-covid-19/
United Nations [UN] (2020). Policy brief: Impact of COVID-19 in Africa, Available online from https://www.google.com/url?
Visser, J. (2020). Our fiscal policy response to the COVID crisis. https://digitalcollections.dordt.edu/faculty_work/1175
Wang, H., & Qian, C. (2011). Corporate philanthropy and corporate financial performance: The roles of stakeholder response and political access. Academy of Management journal, 54(6), 1159-1181.
https://doi.org/10.5465/amj.2009.0548 DOI: https://doi.org/10.5465/amj.2009.0548
Williams, R. J., & Barrett, J. D. (2000). Corporate philanthropy, criminal activity, and firm reputation: Is there a link? Journal of business Ethics, 26, 341-350.
https://doi.org/10.1023/A:1006282312238 DOI: https://doi.org/10.1023/A:1006282312238
Xu, Y., Shi, W., Qin, X., Zhang, J., & Tang, X. (2022). Is identification all the same? The differential effects of CEO and CFO organizational identification on corporate philanthropy. Management and Organization Review, 18(1), 73-107.
https://doi.org/10.1017/mor.2021.17 DOI: https://doi.org/10.1017/mor.2021.17
Zambeta, E. (2000). Religion and national identity in Greek education. Intercultural Education, 11(2), 145-156.
https://doi.org/10.1080/713665239 DOI: https://doi.org/10.1080/713665239
Zhang, J., Xie, C., & Morrison, A. M. (2021). The effect of corporate social responsibility on hotel employee safety behavior during COVID-19: The moderation of belief restoration and negative emotions. Journal of Hospitality and Tourism Management, 46, 233-243.
https://doi.org/10.1016/j.jhtm.2020.12.011 DOI: https://doi.org/10.1016/j.jhtm.2020.12.011
Zhang, N. (2022). How does CSR of food company affect customer loyalty in the context of COVID-19: a moderated mediation model. International Journal of Corporate Social Responsibility, 7(1), 1-10.
https://doi.org/10.1186/s40991-021-00068-4 DOI: https://doi.org/10.1186/s40991-021-00068-4
Zhao, L., Lee, J., & Moon, S. (2019). Employee response to CSR in China: The moderating effect of collectivism. Personnel Review. 48 (3).839-863.
https://doi.org/10.1108/PR-05-2017-0146 DOI: https://doi.org/10.1108/PR-05-2017-0146