Corporate Philanthropy and Financial Performance: An Integrated Institutional and Strategic Perspective
Purpose: This article examines how corporate philanthropy affects stakeholder decision-making and enhances business financial performance from the perspectives of institutional and strategic integration. Design/Methodology/Approach: Findings: The study verifies that corporate philanthropy and financial performance are positively correlated by looking at businesses that are listed on the London FTSE100. It also looks into the underlying mechanics of this interaction. First, the study shows that sales serve as a beneficial middleman, illustrating how philanthropy, when used as a strategic technique, may assist businesses in gaining the favour of current and future customers, lowering price elasticity, increasing sales, and eventually enhancing their financial success. Second, media attention serves as yet another middleman. Practical Implications: Since enterprises that practice charity are more likely to get public grants and subsidies, which improve their financial situation, public subsidies play a crucial intermediate function. These findings demonstrate the diverse ways in which generosity may improve financial success. Originality/Value: Philanthropy aids in a company's social recognition, which generates more favourable media coverage and boosts its financial success.