On The Incentive Of The Non-public Welfare Enterprise Donation In China

In recent years, tax policy transfer tax system and other policies and laws as a guide for the enterprise in the western countries have been widely used in the practice of corporate philanthropy. At present, foreign research, practice and exploration and policy incentives on corporate philanthropy only point to public welfare enterprises, not being related to non-public enterprise donation. As far as our country is concerned, the situation is similar to the western countries. But it is different from the west,, the main body of charity is the enterprise in China, which consists of the public welfare and the non-public welfare enterprise donations, being the essential difference from the western countries 1 that this is different from the western countries in which the individual is the main body of charity.. Meantime, the rise of the non-public welfare enterprise donation has changed the pattern of Chinese enterprise charity, and has become the main social force that affects the charity. And the corresponding lag of theoretical research is:the domestic and foreign research results are basically around the public welfare enterprise donation, and not follow with interest in the non-public welfare enterprise donation in the charity of public welfare charitable effect and social relief role. This shows that the non-public welfare enterprise donation has become the main part of the charity behavior of our country, which should cause the concern and support of the academic community and the government. Government as the leading the charity in our country needs to use the incentive tool to guide the non-public welfare enterprise from the point of view of social welfare to support public welfare, and to help the government to solve social problems, to play the role of enterprises as the main body of the charity.Present stage, incentiv deficiency on the non-public welfare enterprise donation is embodied in the following areas:first, the incentive direction on the non-public welfare enterprise donation is undefined; second incentive tools on the non-public welfare enterprises is absent; third, incentive measures on non-monetary companies is insufficient. Obviously, in view of the present situation of incentive deficiency on the non-public welfare enterprise donation, we must introduce appropriate incentive tools. The research shows that the non-public welfare enterprise donation can not only promote the social welfare, but also be conducive to the private benefit of the enterprise. Therefore, the necessity, feasibility, validity and applicability on the non-public welfare enterprise donation incentive have important theoretical value and practical significance.Around the main performance of the non-public welfare enterprises, the core issue is: whether it is necessary for the government to provide incentive tools to guide the non-public enterprise donation, the existing incentive tools on public welfare enterprise donation would be used in the field of the non-public welfare enterprise donation, the charitable effect of the non-public welfare enterprise donation and incentive effect can be integrated. As far as the core issues is concerned, the further problem to be solved are:first, is the nature of corporate philanthropy in our country public welfare or non-public welfare? How we define the behavior pattern of the non-public welfare enterprise donation? Second, the non-public welfare enterprise donation would produce the public benefit charitable effect? Can incentive tool on the public welfare enterprise donation be used in the field of the non-public welfare enterprise donation? Third, the tax policy and the franchise system as incentive tool of the non-public welfare enterprise donation are effective or not?According to the core of the research, the research ideas are as follows:first, through the analysis of types on corporate philanthropy in China, we definite the nature of corporate philanthropy. Second, although the interests of corporate philanthropy are different, but the results of the charitable effects of their motives are also public welfare. So the analysis of the charitable effects on the non-public welfare enterprise donation should be also public welfare. Third, in the base of the determination of the public welfare effect, we construct the theoretical framework on the study of the non-public welfare enterprise donation in china. Fourth, we explore the public welfare enterprise’s incentive tool in our country by the comparative analysis of the domestic and foreign corporate philanthropy and incentive tool of the public welfare enterprise donation. Fifth, we probe into the necessity, feasibility, and explanation on incentive introduction of the non-public welfare enterprise donation in our country. Sixth, we explore the effectiveness of tax policy to guide the non-public welfare enterprise donation in our country, and analysize the feasibility and applicability of the franchise system to guide the non-public welfare enterprise donation in virtue of the method of case study. Seventh, we grope for the c ountermeasures on incentive optimization of the non-public welfare enterprise donation in our cpuntry.At the beginning of 2008, new enterprise income tax law and its implementation regulation formally were implemented, which are the most authoritative and legal regulations on encourging corporate philanthropy. The paper takes these as the policy basis of research and selected company annual report charity data in 2007 and 2009 being listed on the Shanghai Stock Exchange main board. (2008 belongs to natural disasters of the special year in the donation data were excluded) The goal is to analysize the difference of the motivation of corporate philanthropy, meantime, the the case interviews of state-owned and private enterprises are regarded as a basis to verify it from the side. And then, we utilize the empirical research method to analysize the effectiveness of tax policy as an incentive tool to guide the non-public welfare enterprise donation, and the applicability of the franchise system as an incentive tool to guide the application of the non-public welfare enterprisedonation with the help of typical cases. The conclusions of the empirical research and case study are:first, the nature of the enterprise charity motivation is public welfare, namely "green scarf" rather than "red scarf", which is an charity motivation of economic rationality with the purpose of driving corporate philanthropy on the non-public welfare. Second, the non-public welfare enterprise donation which is based on the economic rationality can produce benefit effect. Third, the tax policy is the effective incentive tool to guide the non-public welfare enterprise. The result shows that both of them have significant correlation, which has obvious incentive effect. Fourth, the government should optimize the incentive mechanism on the non-public welfare enterprise donation to achieve the purpose of strengthening the incentive effect, and ultimately to guide the effect of the non-public welfare enterprise donation to maximize the benefit.Therefore, the paper explore the feasibility and effectiveness about the incentive tool of the public welfare enterprise donation introducted to the non-public welfare enterprises in search of the value and practical significance of the non-public welfare enterprise donation in our country. And then, we guide the non-public welfare enterprises to create more social value and benefit effect, and give full play to the public welfare value of the non-public welfare enterprise donation, ultimately to achieve the goal of maximizing social welfare. It is the main purpose and core of this paper.