Effect CEO’s Demographics, and Entrepreneur and Management Skills on Business Philanthropic Activities and Its Subsequent Social and Business Benefits

To measure the value and results of philanthropy remain some of the greatest challenges. A bigger challenge is to figure out its antecedents. We tried to address both problems by proposing a theoretical framework combining its antecedent and consequence into a structural model. We theorized that the CEO’s Entrepreneur and Management Skills and well as its risk-taking ability increase the Philanthropic activities of the business. Moreover, the effects of these skills and abilities on Philanthropy are complemented by the CEO’s age, qualification, and experience. Furthermore, higher Philanthropy would lead to higher Social and Business Benefits in terms of Employees Satisfaction, better Product Quality, and Cost Efficiency. The empirical validity of our model was established by conducting a survey by means of a Likert scale type close-ended questionnaire. Data were collected from 70 Entrepreneurs/CEOs having less than 100 employees from different sectors of Pakistan. Data were analyzed using confirmatory factor analysis and structured equation modeling. The results completely validated our theory. It showed that both Entrepreneur and Management Skills, risk-taking ability as well as Age, experience, and qualification have a significant positive effect on Philanthropy. Moreover, all three demographic factors significantly and positively complement the effect of each Entrepreneur and Management Skill and Risk-Taking Ability on Philanthropy. Entrepreneur and Management Skills also have a significant effect on Risk-taking abilities. And Lastly, Philanthropy along with Risk-taking ability has a significant and positive impact on Cost Efficiency, Employee Satisfaction, and Product Quality.