Study On Legal Issues For Corporate Charitable Donations

The company, as a profitable economic organization, considers the pursuit of themaximized interests for the shareholders as its eternal purpose. However, with thecontinuous improvement of socio-economy, socio-economic model is being optimizedand the basic concept of the company is quietly changing. The newly revised "Law ofCorporation" in China in2005emphasizes more on the company’s socialresponsibility. The company should not only pursue the maximization of shareholders’interests, but also take whole social benefits into consideration. In fact, either as asocial phenomenon, or as a theoretical research subject, company donation has been ahot issue in recent years. The direct reason lies in that the enthusiasm of the wholesociety including companies to do good is inspired and ignited in some serious naturaldisasters happened these years. At the same time, the rapid development ofglobalization also expands the company’s market and further strengthens the socialinfiltration. More and more companies abandon the purely commercial concept andadopt the socialized development strategy, among which donating becomes theimportant strategy for the company to expand its social space.Company donation is of not only important practical significance but also vitalsystem value. By taking part in charitable donations, companies create a good socialenvironment for the development of the company itself as well as benefit thecommunity. On the one hand, companies improve the external social environment byreallocation of welfare, which is favorable to the shareholders and the communityenvironment in which companies operate, and companies can bear the responsibilityfor the society as a corporate citizenship. On the other hand, companies can mitigatesocial contradictions and create a general harmonious environment by improving thesocial environment and concerning for vulnerable groups, which helps the companiesto develop and gain more benefits. However, compared with the rapid development ofcompany donation, the relevant law system in China is still rather imperfect, whichrestricts the healthy development of company donation. Therefore, to make asystematic study on the system of company donation and to perfect the relevant lawsystem are of great urgency and necessity. In this thesis, the author analyzes theproblems exposed during the development of company donation in China and reasonsfor these problems on the basis of a combination with the practical situations in China. What’s more, by drawing experience for the abroad, the author also gives hissuggestions on the development of company donation of China in the future.At the very beginning in Chapter1, the thesis leads out the theme, that is lawinstitution of companies donation, through two simple case. People can find theloopholes and defects occurred during the companies donation in China. Chapter2introduces theoretically the concept, features of company donation and practicalsignificance is stated so that people can have an overall understanding on companydonation. Chapter3compares the development of charitable donation in nationsabroad(America, Japan, Britain) with the current legislation in China. Compared withthat of the foreign developed countries, problems and faults exist in the companiesdonation in China. Chapter2and Chapter4work as the essence of this thesis. Chapter2analyzes detailedly the main problems of the companies donation system in Chinaand reasons behind the problems. Chapter4discusses the solutions and options toperfect the companies donation system in China from perspectives of nationallegislation, tax incentive, self-building of charitable organizations and others.