Microregional patterns of corporate philanthropy: the role of economic structure and regional determinants

Abstract

Abstract We aim to describe and explain current differences in the rate of corporate philanthropy (CP) at microregional level. Primary research question is to what extent are microregional patterns of CP affected by determinants at firm and industry-level (firm size, industrial structure, profitability) and to what extent are they shaped by regional contextual factors. Measurement of CP was based on anonymized firm-level data provided by the Ministry of Finance, aggregated at the level of municipalities with extended powers (microregions). We employed a regression model to test the effects of population density, economic performance, specialization, dependence of manufacturing, firm size, traditional values and social capital. Surprisingly, we found no significant effects of firm size and industrial structure on regional CP. Firm’s profitability was the most important predictor. We found also positive effects of population density and religiosity and negative relationship between CP and regional economic performance. Despite initial expectations higher rate of CP was not found in rural regions.