November 1st Post

I continue to analyze the data that I collected over the past several months. I started categorizing the companies by industry and looked at if there are any donating behavior trend based on the type of industry. Surprisingly, there is a correlation. I ranked the top 10 industry that donated the most in 2015 and 2016. Even though the particular order varied from 2015 to 2016, the general rank is: banks, real estate, oil, gold, insurance, software, gas, vehicle, and hotel/leisure.

I also started looking at how psychological factors play a role in business leaders' decision to donate to further encourage corporate philanthropy. 

1. Social exchange theory, or “cost-benefit analysis” : we help others if we weigh the costs and benefits and the benefits outweigh the costs  (in this case, the benefits could be companies' image, impression, appeal to its audience, a way to attract more profit) Businesses get more out of it than the money they donate. After all, the donation is usually less than 1% of the company's total profit. 
2. There are intrinsic rewards. Helping people makes us feel good and rewarding. There are scientific proof. 
3. The social-responsibility norm says we should help those who are in need.

I will continue to look at psychological theories and meet with Ms Bendall to discuss more. My next step is to look at how the money donated is generally being used, where the money is donated to, to what kind of organizations or cause, the impact, etc, through giving several examples from well known businesses.