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CORPORATE PHILANTHROPY 2
Introduction
This chapter provides the summary of the findings from chapter four, and it also gives the
conclusions and recommendations of the study based on the objectives of the study.
Board Age
As evidenced in chapter four, board age has a positive and significant effect on corporate
philanthropy. Consistent with the findings, Rhodes (1983) elucidates that there is a significant
relationship between age and a variety of work-related attitudes. Precisely, a board comprised of
individuals of different age brackets possess a wide array of business experience and this of
essence to the board. Further support to the study findings is by Post et al., (2011) who posit that
has a clear influence on philanthropic decisions. The above notion is corroborated by Zajac &
Westphal (1996) who echoed that age is related to directors’ behaviour and their likelihood to
open up to new ideas about board functioning. Moreover, Kets de, Vries & Miller (1984) are of
the opinion that as directors mature, their generational behaviour increases and they maybe more
sensitive to society at large hence more willing to contribute to the society’s welfare. The study
findings are also corroborated by Bekiroglu et al., (2011) who noted that the sensitivity
socially responsible and environmentally friendly behaviour. Besides, Aguilera & Jackson
(2010) infer that different age among directors is likely to lead to a more balanced decision
making hence making it possible for the firm to take into account the firm’s responsibility to a
Board Gender
corroboration with the study findings, Luthar et al., (1997) echo that women think more
CORPORATE PHILANTHROPY 3
favourably of ethical matters than men. Particularly, Burgess & Tharenou (2002) state that
giving. Furthermore, a study by Ali, (2013) revealed a positive correlation between friendly
policies benefits for employees and female board members. Similarly, Bernardi et al., (2009)
found a positive correlation between female board members and community participation. The
study findings are also corroborated by Williams (2003) who revealed that organizations having
higher proportion of female board members engaged in more philanthropic actions and charity
donation giving as compared with a less proportion of female individuals in the board. In
addition, Harrigan & Slaughter, (2014) suggest that having women on board does exert some
influence on philanthropic activities, (Harrigan & Slaughter, 2014). Also, Bear et al, (2010)
found a positive relationship between corporate giving and the number of female directors on the
board.
Board Size
Additionally, the study revealed that board size has a significant effect on corporate
philanthropy. In line with the study findings, Sahin et al., (2011) posited that an appropriate
board size leads to the elimination of problems, protects shareholders’ interests and leads to
appropriate size of the board needed to enhance corporate philanthropy. For authors, such as Kiel
& Nicholson (2003) a large board size is key in enhancing corporate social responsibility actions
due to more experience, expertise, awareness, information and great contacts with other
organizations. However, according to Hermalin & Weisbach, (2001), a smaller board was better
at monitoring management and led to increased performance. As well, Xie & Fukumoto, (2013),
CORPORATE PHILANTHROPY 4
argued that large board is slow in decision making and time wasting. The current study however
holds that a suitable board size affects corporate philanthropic activities of the organization.
Board Independence
philanthropy. The above assertion is supported by Sahin et al., (2011) who argued that a large
corporate charitable activities of the organization. In a similar vein, Finegold et al., (2007) posit
that boards dominated by independent directors are more vigilant in monitoring behaviour and
decision making of the company. Besides, Kamardin, & Haron, (2011) argue that Outside
directors bring in more skills and knowledge to the company which increases expertise necessary
for strategy implementation and corporate philanthropy. As well, Nassir et al., (2011) notes that
the presence of independent directors on board gives greater weight to board’s deliberations and
judgment. The Stewardship suggestion that a significant proportion of independent directors can
better understand not only the business processes but also the environmental factors also
corroborates the study findings. Additionally, a study conducted by Ibrahim et al., (2003)
revealed that outside board members are very much concerned regarding philanthropic
Board Education
Finally, board education has a significant effect on corporate philanthropy. Cognate to the
results, O’ Nell et al., (1989) found out that board of directors’ education in a firm positively
individuals tend to outperform those managed by uneducated managers. Besides, Maurizio et al.,
(2012) elucidate that qualified and skilful board members can be considered as a strategic
CORPORATE PHILANTHROPY 5
resource to provide a strategic linkage to different external resources. As well, Ujunwa, (2012)
stipulates that board members with higher qualifications benefit the firms through a mix of
competencies and capabilities. Moreover, Westphal & Milton, (2000) echo that Members with
higher educational qualifications in general provide a rich source of innovative ideas to develop
policy with analytical depth and rigour that will provide for unique insights on corporate
philanthropy.