Restrictions On The Amount Of Corporate Charitable Donations

The company charity as a company shall fulfill its social responsibility of one of the most typical way, worldwide experience from limited to allow the development process. For in the transition period in China, even though the company charity has reduces the government financial pressure, regulate the gap between rich and poor, to alleviate social contradictions and so on various value function. But not appropriate amount of donation, will increase the company’s operating costs, damage the interests of stakeholders, and will easy to cause the company to compete for business opportunities and between on a charity competition, disturbing the order of market competition, loss of business society invaded the foundation, and eventually departure from the company of the theory of social responsibility of original intention. Restrictions on the amount of company charitable donation first appeared in the traditional amount of donation "reasonableness" criteria in the Anglo-American jurisprudence. But the traditional criteria of the amount at the moment there are limitations in the company’s development; overly restrictive standards may hinder the development of the company. In this paper, the different categories of company philanthropy corporate charitable donations have to set the different criteria. In order to protect the company’s stakeholders’ interests and the company’s normal operations, we should be completely banned as a loss type company charitable donation; in charitable benefit companies, because the company’s decision-making purely altruistic charitable purpose and the company attributable to shareholders, it is possible to follow the traditional criteria; in strategic charitable companies, in order to ensure that directors, managers can make timely Charities strategic decision to achieve long-term interests of the company, to limit the amount of corporate charitable donations are no longer using the traditional standard, but references to operator judgment rule as a criteria, a reasonable amount to relax the restrictions.