Spirituality and Corporate Philanthropy in Indian Family Firms: An Exploratory Study.
By Navneet Bhatnagar, Pramodita Sharma, Kavil Ramachandran
Journal of Business Ethics | December 2019
DOI
doi.org/10.1007/s10551-019-04394-3
Citation
Bhatnagar, Navneet., Sharma, Pramodita., Ramachandran, Kavil. (2018). Spirituality and Corporate Philanthropy in Indian Family Firms: An Exploratory Study. Journal of Business Ethics doi.org/10.1007/s10551-019-04394-3.
Copyright
Journal of Business Ethics, 2018
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Abstract
Family firm philanthropy (FFP) is the donation of resources to support societal betterment in ways meaningful for the controlling family. Family business literature suggests that socioemotional goals of achieving family prominence, harmony and continuity drive FFP. However, these drivers fail to explain spiritually motivated philanthropic behaviors like anonymous giving by some Hindu business families. Based on case studies and interviews with family members in 14 Hindu families in India with a combined giving exceeding 2 billion INR in 2016-17, this study suggests spirituality or the moral dimension as an additional important driver of corporate behaviors like FFP. Two fundamental spiritual beliefs of dharma (duty towards society) and karma (right to action) instill a culture of duty-bound giving in Hindus. However, the strength of each belief in controlling families varies. Juxtaposing these beliefs leads us to four types of family firm philanthropist labeled in this paper as Devout, Committed, Devoid, and Coerced. Devouts, the biggest givers, are spiritually motivated, controlled by at least 3rd generation family members with executive power and professional support. Societal development, rather than spirituality is the key motivator for committed philanthropists. While devoids strongly hold spiritual beliefs, they fail to devote adequate resources or develop professional structures to support FFP. Coerced, the smallest givers, focus on business growth, lack family champions or supporting professional structures, and face turbulent family or business domains.