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Corporate Charitable Giving, Multinational Companies and Countries of Concern


Stephen Pavelin, Henley Business School, University of Reading, Reading RG6 6AA, UK (


This paper investigates the degree to which corporate charitable giving is influenced by a firm's internationalization and/or whether it has operations in one or more countries of concern. For a sample of large UK firms, we find evidence of a positive effect not for internationalization per se, but only for a presence in particular countries. In this connection, the salient country characteristic is a lack of political rights and/or civil liberties, and the positive impact on charitable giving is restricted to a presence in only those countries that are, according to Freedom House indicators, most lacking in this respect. Furthermore, our study highlights a mode of corporate response to stakeholder concerns and pressures – offsetting – that is qualitatively different from those suggested in earlier conceptual literatures.