What is it about?
In this study, I investigate whether corporate giving and employee participation in the corporate-giving decision-making process affect employee performance and performance overstatement. I conducted a laboratory experiment in which an organization either (1) includes employees in the decision-making process regarding the beneficiary of corporate giving (participative corporate giving), (2) chooses the beneficiary alone (non participative corporate giving), or (3) does not engage in corporate giving at all. The results demonstrate that participative corporate giving leads to higher employee performance than non-participative corporate giving and no corporate giving. Regarding performance reporting, employees overstate the least if an organization implements participative corporate giving. Non participative corporate giving neither increases employee performance nor does it decrease performance overstatements as compared to no corporate giving. Collectively, these findings suggest that employee participation in the corporate-giving decision-making process is a useful measure that can be applied to increase employee performance and reduce performance overstatements.
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Why is it important?
Corporate giving is not only a way for companies to give back to their communities but also a strategic investment in relationships with their employees and their long-term success.
Perspectives
From my perspective, this study highlights the often-overlooked importance of employee involvement in organizational decisions, even in areas like corporate giving. I found it particularly interesting that participative corporate giving not only boosts employee performance but also reduces the tendency to overstate results, suggesting that giving employees a voice fosters both motivation and ethical behavior. This contrasts with non-participative giving, which has little effect, showing that simply engaging in corporate social responsibility is not enough—how it is implemented really matters.
Martin Altenburger
Webster Vienna Private University
Read the Original
This page is a summary of: The Effect of Corporate Giving and Participation on Employee Performance and Performance Overstatement, SSRN Electronic Journal, January 2023, Elsevier,
DOI: 10.2139/ssrn.4630622.
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