The Company Donated The Legal Issues

Company donation is one of the ways that a company fulfills its social responsibilities. Due to the legal research with respect to company donation in our country is still in its infancy, the stipulations of laws are fragmented and of low-level force and effect, and the legal system is quite far from perfection, the intricate conflicts of interest involved in the company donations have not been effectively balanced or regulated, which resulting in a large number of misconducts in company donations. After the struck of Wenchuan earthquake in May 2008, many of our companies had participated one after another in the upsurge of relief donations. As occurring on such special time point, the intricate conflicts of interest in company donations became highlighted in the full glare of publicity. The existing problems concerning the company relief donations are that they are vulnerable to the interferences from external pressure, ignoring their actual circumstances and lacking of procedures, which are causing damages to the interests of the companies and relevant stakeholders. This article, from the perspective of the representative company donation cases and the phenomena arising out of the company donations after Wenchuan earthquake, unfolds how the conflicts of interest in company donations are generated and developed in real life, and summarizes several types of misconducts in company donations occurred from the imbalance of conflicts of interest. It analyzes the legal nature, characteristics, effects and legal nexus of company donations based on the observance and study of the legal system related to company donations at home and abroad. Through detailed analysis of the conflicts of interest in company donations, deliberating the check-and-balance system for the conflicts of interest in company donations and the institutional environment required by rational company donations, this article, in two aspects of the legal principles of company donations and the approaches of perfecting the legal system of the same, offers proposals to improve the legal system of company donations in our country.Chapter I by using the methods of case analysis and empirical analysis, shows the process of interactions made by and among various related social factors during the company relief donation for Wenchuan earthquake, and indicates the company relief donations are suffering from donation misconducts as a result of lacking effective check-and-balance system for the conflicts of interest. Chapter II conducts the observance, study and critique to the relevant stipulations of laws in our country regarding the company donations, and indicates the existing problems concerning the aforementioned stipulations are of the fragment, harshness, lacking of systematic and integrity. Chapter III by utilizing the methods of comparative analysis and historical analysis, in combination of longitudinal comparison and parallel comparison, gives an introduction and commentary to the legal system of company donations abroad, studying the international status of legal regulation on company donations from the perspective of comparative law. Chapter IV by using the methods of data analysis and inductive analysis, traces to the source from the theory of law to clarify the legal nature, characteristics, effects and legal nexus of company donation, and unfolds the legal features and specialty the company donation shall have, illustrates detailed analysis of the forms of conflicts arising out of various interests in company donations, and concludes the approaches of balancing and regulating the interests. The final chapter, on the basis of integrating the afore-mentioned parts of research, with respect to the regulating of conflicts of interest in company donations and of the company donation conduct in our country, starting with the two aspects of the legal principles and of the perfection approach of legal systems, provides suggestions on the improvement of legal systems regarding company donation in our country, indicating that the legal regulation of company donations shall be guided by the principles of appropriate donation, independent donation, procedural constraint and that of bearing responsibilities, as within the company, shall duly allocate the authority of decision-making for donation, make a clear donation decision-making procedure, impose limitations on the purpose, object and quota of company donations, build up the relief mechanism for damages to the interests, and explicit the subject and the way of undertaking responsibilities; as outside the company, shall perfect the legal systems from the aspects of tax preferences, expanding the scope of the donees, the construction of evaluation system for company donations, and etc.