1. Mood and Ethical Decision Making: Positive Affect and Corporate Philanthropy
- Author
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Don O'Sullivan, Myeong-Gu Seo, Madhu Veeraraghavan, and Leon Zolotoy
- Subjects
Economics and Econometrics ,Embeddedness ,05 social sciences ,Institutional investor ,Ethical decision ,06 humanities and the arts ,0603 philosophy, ethics and religion ,Affect (psychology) ,General Business, Management and Accounting ,Business economics ,Arts and Humanities (miscellaneous) ,Argument ,0502 economics and business ,060301 applied ethics ,Business ,Business and International Management ,Marketing ,Business ethics ,Law ,Social responsibility ,050203 business & management - Abstract
This study examines the influence of mood (‘affect’) on corporate philanthropic giving. Drawing on group emotions theory and affect-infused decision theory, we advance the argument that firms allocate greater resources to philanthropy when headquarters-based employees are in a more positive affective state. We also describe three boundary conditions in this relationship—executives’ embeddedness in the firm, executives’ latitude to engage in philanthropic giving, and the firm’s track record of corporate social irresponsibility. We test our arguments using a longitudinal dataset of philanthropic giving by U.S. firms. Our study contributes to the literature by shedding light on the role of affect in shaping the decision to allocate resources to corporate philanthropy.
- Published
- 2020
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