Spirituality and Corporate Philanthropy in Indian Family Firms: An Exploratory Study

Navneet Bhatnagar, Pramodita Sharma, Kavil Ramachandran

Journal of Business Ethics · 2020 · Volume 163 · Issue 4

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 business families. 14 case studies of Indian Hindu business families with a combined FFP exceeding 2 billion INR in 2016–17 reveal spirituality or the moral dimension as an additional important driver of corporate behaviors like FFP. Two fundamental spiritual beliefs ofdharma(duty towards society) andkarma(right to action without expectation of rewards) instill a duty-bound giving culture in Hindus. However, the strength of each belief varies in controlling families revealing four configurations of philanthropists labeled asDevout,Committed,Devoid, andCoercedin this study.Devouts, the biggest givers, are spiritually motivated, controlled by at least third-generation family members with executive power and professional support.Committedphilanthropists are motivated by societal development rather than spirituality. Whiledevoidshold spiritual beliefs, they neglect to devote appropriate 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.

Keywords

Corporate philanthropy, Family business, Spirituality, Values, Hinduism, Dharma, Karma, Social justice, Corporate social responsibility

Enable JavaScript for citation tools and additional paper interactions.