A Research On Corporate Charitable Donations Information Disclosure

In recent years, with the rapid growth of the company’s charitable donations scale,whether the company should reveal the charitable donations information has caused muchcontroversy at home and abroad. About this issue, there are two views in academia---the"positive" party and the "negative” party. The party who hold a positive attitude believes thatthe disclosure of charitable donations information will help stakeholders make rationaldecisions, and regulate the company’s improper donation behavior. While the other thinksthat the company’s charitable donations is the matter of the operating layer who can maketheir own decisions. Also the company’s charitable giving is often associated with thecompany’s marketing strategy. If the company discloses the charitable donations informationinvolved with trade secrets, it will make competitors aware of the company business strategy,and lead to the significant losses of the company. However, the substantial increase in thetotal charitable donations, and the normalized of charitable donation behavior rise greatpublic concern about the company’s charitable donation information. Stakeholders need tounderstand the operational status of the company and to oversee the company’s charitabledonation behavior by assessing the company’s charitable donation information. Because ourcounty doesn’t have clearly regulations about the charitable donation information disclosedon company, so whether to disclose charitable donations information still belongs to thecompany’s own things. There are a lot of problems about voluntary disclosure in our reality,such as the disclosure of the contents is single and the information disclosed is of lowcredibility. A series of problems is not conducive to the stakeholders to obtain the necessaryinformation to protect their own interests. Therefore, theorists need to strengthen the researchof the company’s charitable donation information disclosed, in order to provide theoreticalsupport for practitioners.In view of this, author selects the subject of "corporate charitable donations informationdisclosure system”. Firstly, author defines the concepts of corporate charitable donations andcharitable donations information disclosure and analyzes the theoretical basis of corporatecharitable donations information disclosure. Secondly, in view of the controversy at homeand abroad, author elaborates the views of the "positive" party and the "negative” party, anddiscusses the necessity of disclosing charitable donation information. Thirdly, in theperspective of the example of "Vanke and Wong Lo Kat" in Wenchuan earthquake, author analyzes the situation of the company charitable donations information disclosure on ourcounty. Finally, based on the theoretical analysis, author put forward the suggestions ofbuilding our company charitable donations disclosure regime from disclosure path. The paperincludes the following sections:The first chapter is an introduction to the background, significance and research methodsof the article. And then discusses the research status at home and abroad on charitabledonations disclosed.The second chapter is about theoretical basis of the company’s charitable donationsinformation disclosure. At first, author defines the concept of the company charitabledonations information disclosure.About the theoretical basis, author introduces four theoriessuch as the stakeholder theory, which explain the necessity of disclosure information.The third chapter researches on the value of establishing the information disclosuresystem of charitable donations. This section discusses the positions and views of parties onthe company charitable donation information disclosure for domestic and internationalcontroversy, and then analyzes the necessity of charitable donation information disclosure.The fourth chapter focuses on the current situation of company’s charitable donationsinformation disclosed analysis on our company. In this section, author chooses "Vanke" and"Wong Lo Kat" as an example and conducts the empirical analysis. Afterwards, authorinvestigates the legislation missing from the current legislation and practical problems of ourcharitable donations information disclosure faced by the research. Through this, author triesto find a solution to build our company’s charitable donation information disclosure systemprograms.The fifth chapter is about some policy recommendations. In this part, author elaboratesthe general principles of the establishment of our charitable donations information disclosuresystem which is required to insist. It provides the premise of establishing a practicalinformation disclosure system in China. In connection with the problem in practice, thispaper gives four proposals to establish charitable donation information disclosure systembased on mandatory disclosure, supplemented by legislative idea for our legislature.