Can Chinese-style trade unions promote corporate philanthropy? A stakeholder theory perspective

Abstract

Corporate philanthropy is an important form of fulfilling social responsibility and improving social income distribution systems. Unlike Western trade unions, Chinese trade unions have government-like functions. This study discusses whether Chinese-style trade unions help promote corporate philanthropy. Based on stakeholder theory, this study examines the philanthropic effects of Chinese-style trade unions using data from the Chinese Private Enterprises Survey and employs methods such as the Treatment Effect Model, Instrumental Variables Method, and Propensity Score Matching. The results show that unions with government-like functions can significantly incentivize firms to engage in philanthropic activities and that this effect encourages start-ups and well-funded firms, which enriches and expands the research on the functions of unions. Trade unions can help enterprises gain political connections and promote a sense of corporate social responsibility, thus enhance corporate philanthropy. In addition, female leaders are more likely than male leaders to promote the positive impact of unions on corporate philanthropy. This study not only expands the literature on union functions and the antecedents of corporate philanthropy, but also enriches the discussion on the synergies among multiple stakeholders in stakeholder theory and the role of gender in the field of management.