The Research On Corporate Charitable Donation Legal System From The Perspective Of Interest Balance

With the development of economy, companies have caused a series of social problemsin the process of pursuit economic profits, such as serious environmental pollution, thewidening gap between the rich and the poor, labor disputes, etc. Both the fields of domesticand foreign theories and practices have realized that company should not only maximizeshareholders’ profits, but also shoulder certain social responsibilities. Corporate charitabledonation is one way for companies to fulfill their social responsibilities, which can not onlyreduce government pressure and ease social contradictions but also establish good corporateimages and better realize companies’ objectives of gaining profits. With regard to this issue,foreign companies’ philanthropy develops fast. United States is the earliest country inCorporate Philanthropy Research. In the USA, almost all states have made clear legalprovisions on corporate charitable donation and given corporate charitable donationlegitimacy. Legal provisions of China’s corporate philanthropy is still not perfect, even thoughthere are already some legal provisions of corporate charitable donation in Company Law,Bankruptcy Law, Public Welfare Donation Law, Enterprise Income Tax Law, ContractLaw,etc. Company Law stipulates that enterprises should bear social responsibilities, whilePublic Welfare Donation Law and Enterprise Income Tax Law make tax provisions oncorporate charitable donation. However, these provisions are too simple and lack ofpertinence. On the one hand, they cannot solve all kinds of interest conflicts in corporatecharitable donation; on the other hand, they are not conducive to long-term development ofcorporate charitable donation. The present paper makes a deep analysis on the theoreticalfoundations and the construction of corporate charitable donation system in order to balanceconflicts of different interests.In addition to the introduction and conclusion, the present thesis is composed of fiveparts.The first part of the present paper is the principle of corporate charitable donation. Thispart makes clear the definition, characteristics and properties of corporate charitable donation;proves the rightness of corporate charitable donation and discusses the necessity andlegitimacy of corporate charitable donation.The second part of this paper is the present situation of China’s corporate charitabledonation.This part analyzes the basic content of corporate charitable donation and the conflict of interests in our country. These conflicts are reflections of conflicts between shareholders’interest and corporate interest, government’s interests and corporate interest, creditor’sinterest and corporate interest, beneficiary’s interest and corporate interest.The third part of this paper is the reasons of interest conflict in China’s corporatecharitable donation. This part analyzes the reasons of corporate charitable donation’s conflictsin China, mainly due to defects of the donation decision mechanism, supervision mechanism,drive mechanism and relief system. Our law has not made the decision-making body, thedonation object, the donation amount clear.in the decision mechanism.The effect ofpreferential tax policy and reputation incentive measure is not obvious with regard to theincentive mechanism. As for supervision mechanism, the supervision measures about boardcan not carry out effectively. Besides, the shareholder’s relief system, the creditor’s reliefsystem and the beneficiary’s relief system should be improved in the relief system.The fourth part of this paper is the balance system of interest conflict in America, Japanand other countries. This part introduces corporate charitable donation systems of bothAmerica and Japan; and explains their relevant regulations on corporate charitable donation,aiming at providing references for balancing these conflicts of interests in China.The fifth part of this paper is the measures of perfecting corporate charitable donationlegal system from the perspective of interest balance This part puts forward some legalsystems to balance the conflict of interests according to China’s specific conditions. First ofall, the ideology of good charitable donation should be formed. Then laws should beestablished to make clear the basic contents in corporate charitable donation, such asdecision-making body, the donation object so on and so forth. Thus the operation of corporatecharitable donation can be strengthened. Lastly, the establishment and consummation of theincentive mechanism, the supervision mechanism, and the relief mechanism should berealized.