Open Access Journal Article

The Effects of Listed Company Charitable Foundation on Business Relationship of Supply Chain: Based on the Empirical Research of Corporate Social Responsibility

by Xindan Chang a,* ,  Mengke Li a  and  Ning Xiao b
a
School of Business, Beijing International Studies University, Beijing, China
b
College of Business & Economics, The Australian National University, Canberra, Australia
*
Author to whom correspondence should be addressed.
REA  2023, 13; 2(2), 13; https://doi.org/10.58567/rea02020003
Received: 17 April 2023 / Accepted: 22 June 2023 / Published Online: 22 August 2023
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Abstract

The Public Welfare Foundation of a listed company is a non-profit organization with independent legal personality. It is established and funded by a listed company. The purpose of establishing a foundation for a listed company is generally to carry out charitable activities and make important contributions to charitable causes. However, due to the special power separation model, the autonomy of the foundation is poor, and there may be serious agency conflicts, ultimately leading to listed companies becoming beneficiaries of the foundation's charitable activities. We have found from the perspectives of commercial credit, sales, and cooperative relationships that social responsibility initiating organizations (listed companies) can obtain potential benefits from social responsibility fulfilling organizations (listed company public welfare foundations) in supply chain commercial relationships, that is, listed companies that establish public welfare foundations have good supply chain commercial relationships. When a listed company and a public welfare foundation have a close relationship in terms of fund donation, decision-making, business, and naming, the public welfare foundation has a strategic preference in selecting project names, project service areas, project beneficiaries, and project service areas. It prioritizes the interests of the listed company, enabling the listed company to obtain better supply chain business relationships.

Keywords: Listed company foundations; Supply chain business relationships; CSR;
Copyright: © 2023 by Chang, Li and Xiao. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

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ACS Style
Chang, X.; Li, M.; Xiao, N. The Effects of Listed Company Charitable Foundation on Business Relationship of Supply Chain: Based on the Empirical Research of Corporate Social Responsibility. Review of Economic Assessment, 2023, 2, 13. https://doi.org/10.58567/rea02020003
AMA Style
Chang X, Li M, Xiao N. The Effects of Listed Company Charitable Foundation on Business Relationship of Supply Chain: Based on the Empirical Research of Corporate Social Responsibility. Review of Economic Assessment; 2023, 2(2):13. https://doi.org/10.58567/rea02020003
Chicago/Turabian Style
Chang, Xindan; Li, Mengke; Xiao, Ning 2023. "The Effects of Listed Company Charitable Foundation on Business Relationship of Supply Chain: Based on the Empirical Research of Corporate Social Responsibility" Review of Economic Assessment 2, no.2:13. https://doi.org/10.58567/rea02020003
APA style
Chang, X., Li, M., & Xiao, N. (2023). The Effects of Listed Company Charitable Foundation on Business Relationship of Supply Chain: Based on the Empirical Research of Corporate Social Responsibility. Review of Economic Assessment, 2(2), 13. https://doi.org/10.58567/rea02020003

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