The Research Of The Motivation And The Economic Consequences Of The Geographical Distribution Of Philanthropy By Private Enterprises

Philanthropy is the most common way for enterprises to assume social responsibility and realize social value.At present,China’s philanthropy construction is at its zenith and is in a period of rapid development.The number of private enterprises participating in philanthropy is increasing and playing an increasingly important role.Many scholars at home and abroad have studied the motivation and effect of corporate donation behavior from the perspective of the characteristics of enterprises and executives,and the time point of donation,and have achieved fruitful results.However,few scholars have conducted research on the motivation and economic consequences behind the geographical distribution of philanthropy by private enterprises.The resources of private enterprises are limited.When making donation decisions,compared with "whether to donate" and "how much to donate","where to donate" is also an important aspect of decision-making.Therefore,it is of certain significance for this paper to study the regional flow of donations of two private enterprises,Baofeng Energy and Longbai Group,in order to deeply understand the factors that private enterprises consider when deciding where to donate,and provide some reference for private enterprises.This paper divides the regional flow of charitable donations from private enterprises into the following three types: first,donation to the hometown of the actual controller or executive;Second,make donations to the registered place of the enterprise;Third,make donations to cross-regional business sites.Baofeng Energy’s geographical distribution of philanthropy is a combination of the first and the second,which is donated to the registered place of Ningxia and inclined to Yanze County,Ningxia,the hometown of Chairman Dang Yanbao.Longbai Group’s geographical distribution of philanthropy is a combination of the second and the third.With the continuous expansion of the titanium industry production base from "Jiaozuo,Henan→Deyang,Panzhihua,Sichuan;Xiangyang,Hubei→Chuxiong,Yunnan→ Jinchang,Gansu",the regions it donated have also basically expanded to the corresponding areas.This paper studies the motivation behind the geographical distribution of philanthropy in two cases,and mainly finds three aspects.First,the geographical distribution of philanthropy of Baofeng Energy and Longbai Group are both affected by the equity structure and shareholder background.Second,both Baofeng Energy and Longbai Group’s geographical distribution of philanthropy are driven by political motives.However,Baofeng Energy is more active,and its charitable donation was affected by some "political contribution" factors,while Longbai Group is relatively passive,mainly responding to the call of the Sichuan government to reduce the risk of obtaining and losing key resources.Third,the geographical distribution of philanthropy of Baofeng Energy may also have the motivation of managers’ self-interest.This paper analyzes the economic consequences of the geographical distribution of philanthropy in two cases,and the main conclusions are as follows.First,in the non-financial aspect,Baofeng Energy has achieved better results in government resource support than Longbai Group,such as government recognition,political association of senior executives,etc;Compared with the single regional donation of Baofeng Energy,cross-regional donation has promoted the regional expansion of Longbai Group.Second,in terms of finance,the government subsidies and financial discount obtained by Baofeng Energy and Longbai Group are significantly higher than those of chemical enterprises with less donation in the same region,which helps to improve theirs financial performance;In terms of tax preference,Baofeng Energy received a great deal of government tax preference,but the tax credit effect of Longbai Group’s donation was not strong.Overall,both Baofeng Energy and Longbai Group have achieved the expected results from their geographical distribution of philanthrop,achieving a win-win situation for enterprises,governments,and society.Finally,according to the research conclusion,this paper provides relevant suggestions to private enterprises and the government.hoping to provide some ideas for private enterprises that are participating in and preparing to participate in philanthropy,and also facilitate the government and charitable organizations to guide private enterprises to donate to the most urgently needed regionss to maximize the social benefits of donated resources.